ETF Bond Ladder
A strategy for investors seeking income and a hedge against interest rate direction.
Target maturity ETFs are a relatively new class of income ETFs that hold a diversified portfolio of bonds with similar maturity dates. Each ETF provides regular interest payments and distributes a final payout in its stated maturity year, similar to traditional bond laddering strategies. However, the funds’ unique structure is designed to help investors easily build bond ladders with only a handful of funds.
ETF bond ladders can be added to any portfolio. The above listing is a sample of the maturities available from Barclays. They are available as both taxable (corporate) and nontaxable (municipal) securities.
Bond ladders are customized on a per portfolio basis and are structured to meet your client’s investment requirements.