Fixed-income exchange-traded funds provide diversified bond exposure, often at a low cost. Passive fixed-income ETFs lower expenses because they rely on an index to define their holdings.

The author and editors take ultimate responsibility for the content. Bond exchange-traded funds (ETFs) can be vital to your investment portfolio, particularly if you are not an accredited investor.

Smaller potential returns: By definition, passive funds pretty ... buying shares in either index mutual funds or index exchange-traded funds (ETFs). Index-based ETFs, like index funds, track ...