Strength and Weakness of Bond ETF
Monthly income
Bond ETFs hold assets with different maturity dates. So, at any given time, some bonds in the portfolio may be due for a coupon payment. For this reason, bond ETFs pay interest each month, with the value of the coupon varying from month to month.
Interest rate risk
Since a bond ETF never matures, there isn't a guarantee the principal will be repaid in full. Furthermore, when interest rates rise, it tends to harm the price of the ETF, lik...