Not exact matches
Custom creation of ETFs is a process
by which investors — mostly institutional — convert their
individual bond holdings into units of exchange traded
funds to potentially improve liquidity, reduce trading costs and / or save time.
An IRA is a vehicle for
holding investments, stocks or
bonds, either as
individual holdings or in a portfolio of stocks or
bonds created
by a mutual
fund or ETF.
By potentially
holding hundreds — sometimes thousands — of
bonds and stocks in a single balanced
fund, you get more diversification than you would buying
individual bonds and stocks.
By potentially
holding hundreds — sometimes thousands — of
bonds in a single
fund, you get more diversification than you would buying
individual bonds.
You could also further diversify the
bond portion of your portfolio
by investing, say, 20 % to 30 % of your
bond holdings to a total international
bond index
fund, although, frankly, I don't think an international
bond portfolio is anywhere close to a «must have» element for the portfolio of most
individual investors.
Despite the negative connotation of the term «junk
bond,» these
bonds are widely
held by investors, especially in mutual
funds and exchange - traded
funds (ETFs), which mitigate the default risk for any
individual bond.
You could lose money on your investment in the
Fund or the
Fund could underperform because of the following risks: the market prices of stocks or
bonds held by the
Fund may fall;
individual investments of the
Fund may not perform as expected; and / or the
Fund's portfolio management practices may not achieve the desired result.
Unlike
individual bonds, most
bond funds do not have a maturity date, so
holding them until maturity to avoid losses caused
by price volatility is not possible.
Unlike
individual bonds, most
bond funds do not have a maturity date, so avoiding losses caused
by price volatility
by holding them until maturity is not possible.