The vast
majority of bond index funds sell them before maturity because major bond indexes provided by BarCap (ex-Lehman) all have minimum maturity clauses, forcing them to sell the bonds early in order to track the index properly.
Not exact matches
The
majority of the
index is investment - grade
bonds, with only 7.6 %
of the issuers rated high yield.
While there are a few activelymanaged fixed income ETFs, for our purposes we'll focus on
index - based products, which generally seek to track the performance
of an
index minus fees and expenses, and make up the
majority of bond ETFs out there.
I have the
majority of my investments in
index funds at Vanguard in a taxable account, but don't like
bond funds paying next to nothing in a rising interest rate environment, though their low correlation to stocks would be nice, return free risk though.
The
majority of my cash position now sits in Vanguard's Intermediate - Term
Bond Index Fund (VBIIX), earning 2.11 % while I search for better options.
The
majority of government
bond funds are
index based, meaning they track a specified
index and there no active management.