After being on the market for more than a decade, defined maturity bond funds are finally attracting attention.
Traditional open end, bond mutual funds or bond ETFs, on the other hand, have no maturity date.
One big advantage over owning individual bonds, however, is that defined maturity ETFs are easy to purchase on the stock exchange.
How they work Each defined maturity bond fund holds securities in the same sector that come due in the calendar year chosen for the fund.
Callable bonds are simply those that can be redeemed or paid off by the issuer prior to the bonds' maturity date, according to the Securities and Exchange Commission.
Persons:
Charles Rotblut, Bonds, Sarajat Samant, Karen Veraa, BlackRock's, —, Veraa, IBonds, Invesco, Treasury iBond, Jason Bloom, Invesco's Bloom, haven't, I'm, BlackRock's Veraa, Morningstar's, Samant, AAII's
Organizations:
Investors, American Association of, Treasury, BlackRock, Securities and Exchange Commission, Invesco
Locations:
BlackRock's iShares, U.S