Broad debt ETFs invest in the bonds of companies, sovereign entities, central banks, or a combination of the three. Broad debt ETFs can add stability and reduce volatility of a portfolio. Additionally, broad debt ETFs often pay steady and predictable coupon payments. Broad debt ETFs trade throughout the day on a centralized exchange, making them more liquid than individual bonds or bond mutual funds—individual bonds are sold over-the-counter by brokers while bond mutual funds are only priced at the end of each trading day.
