I run into far too many investors who think the best way to build their bond income is to buy through an ETF.
It makes sense. After all, buying corporate bonds “direct” means playing in the murky over-the-counter market, or forking over a hefty brokerage commission.
What’s more, the media—with help from ETF providers’ marketing departments—has most folks believing an “automated” ETF always beats a human manager.
So it follows that more people are buying ETFs like the Bloomberg Barclays SPDR High-Yield Bond ETF (JNK). With one click, you’re getting a portfolio of corporate bonds throwing off a nice 5.6% dividend yield—and charging just 0.4% of assets.… Read more