Active vs. Passive ETFs: What’s the difference and which is better?

Bond ETFs have become a popular choice for investors looking to invest in fixed-income securities. They offer an easy way to diversify bond holdings and manage risk in uncertain markets. In this article, we’ll break down the key differences between active and passive bond ETFs, helping you decide which approach might fit your investment goals.

What are active and passive bond ETFs? 🤔

Passive bond ETFs aim to track the performance of a specific bond index as closely as possible.

Active bond ETFs are managed by professional fund managers who decide which bonds to buy, sell, or hold in the fund within the fund's portfolio.