This summary was created by AI, based on 1 opinions in the last 12 months.
Experts agree that Bond ETFs work by adding new bonds at higher rates as older bonds mature. The underlying yield tracks the newer rate and the ETF may sell bonds with a maturity of under 1 year to invest in longer-term bonds. Due to the large number of bonds in a corporate ETF, daily pricing is done through sampling, resulting in some uncertainty in the ETF value. Overall, there is a level of arbitrage involved in the valuation of the bonds and ETF.
As bonds mature, new bonds are added at higher rates. Underlying yield tracks the newer rate. Sometimes when bonds get to a maturity of under 1 year, they sell them and move on to longer-term bonds in that index.
There could be 200 bonds in a corporate ETF, and they can't price those every day. So they do sampling. So you're never 100% sure of the difference in value between the bonds and the ETF value. There's some arbitrage that goes on.
Bond ETFs is a Canadian stock, trading under the symbol BOND-T on the Toronto Stock Exchange (BOND-CT). It is usually referred to as TSX:BOND or BOND-T
In the last year, there was no coverage of Bond ETFs published on Stockchase.
Bond ETFs was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Bond ETFs.
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In the last year 0 stock analysts on Stockchase covered Bond ETFs. The stock is worth watching.
On 2024-08-30, Bond ETFs (BOND-T) stock closed at a price of $20.72.