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Using Fixed Income ETFs to Manage Duration and Credit Risk

  Introduction  In an ever-changing market, investors need tools that provide flexibility, diversification, and control . That’s where fixed income ETFs come in. These exchange-traded funds offer a powerful way to access the bond market — allowing investors to manage duration and credit risk efficiently while maintaining liquidity. Duration measures a bond’s sensitivity to interest rate changes, while credit risk reflects the likelihood of default by the issuer. Managing both is crucial in a portfolio, especially during periods of rising rates or economic uncertainty. Traditionally, this required direct bond ownership or active management. Now, with ETFs, investors can dynamically adjust their exposure through a single, low-cost vehicle. In this guide, part of the Mastering ETF series, we’ll explore how fixed income ETFs can help balance risk and return , optimize portfolio stability, and fine-tune exposure across the yield curve. You’ll learn key concepts, ETF examples,...

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