One advantage of using ETFs is their flexibility, says Morningstar's Jose Garcia-Zarate
One of the most commonly highlighted advantages of using ETFs as an investment vehicle is their flexibility, which allows for management of risk in all possible expressions. Among the ETF universe, fixed income ETFs are increasingly being marketed as risk-management tools. The wide choice of maturity-targeted fixed income ETFs and their tradability in real time, affords investors the possibility to quickly put into practice portfolio rebalancing strategies aimed at altering the average duration of overall fixed income holdings. This risk-management objective is greatly facilitated by ...
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