How can bond ETFs help you generate income?
If you're looking to earn income from your investments, you may want to consider bonds. Bonds are debt instruments that seek to make regular interest payments in the form of coupons. Bond yields have moved higher in the last five years, creating an attractive opportunity to generate income.
So-called “Core” bond sectors – which include US Treasuries, mortgage-backed securities and corporate bonds – are considered high quality investments and carry credit ratings between BBB and AAA. Investors can find additional opportunities to generate income in sectors that may offer higher yields, such as high yield bonds and emerging markets.
Ready to invest in bonds? iShares Bond ETFs are a low-cost way to access the bond market. (Learn more about types of bonds)