Part 2 of my "I read investopedia, but still confused about this..." series: Apart from diversification, what's the benefit of bond ETFs? I thought the whole point of buying bonds is that they are NOT a stock, pay interest rate and are safer in case of bankrupcies. But ETFs trade as stocks, so doesn't that just go against the point? Do they pay a dividend that reflects the overall interest or how is it paid? Is the price as volatile as other, stock-ETFs?
Please illuminate this investing scrub.
Submitted April 09, 2019 at 01:16PM by MrNiemand http://bit.ly/2IsCRE6
