Savings Bond Definition

Jan 16, 2024

Reviewed by: etf.com Staff

Edited by: etf.com Staff

Learn more about Savings Bond

While not an ETF, a Savings Bond is a fixed-income investment issued by the U.S. Department of the Treasury, providing a stable and government-backed savings option. Unlike ETFs, Savings Bonds are not traded on exchanges. Investors purchase Savings Bonds at a discount to face value, and they accrue interest over time. Although lacking the liquidity and tradability of ETFs, Savings Bonds offer risk-averse investors a conservative and secure avenue for capital preservation and income generation, emphasizing stability and government support as foundational pillars of their appeal.

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ETF Glossary

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.

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