Corporate Bond Definition

Learn the definition of corporate bond and other ETF terminology from the glossary.

Reviewed by: Staff
Edited by: Staff

Learn more about Corporate Bonds

Corporate Bond ETFs cater to fixed-income investors, offering exposure to a diversified or focused portfolio of corporate bonds. These bonds represent debt issued by corporations seeking capital. Corporate Bond ETFs can encompass a range of credit qualities, maturities, and sectors, providing investors with flexibility in tailoring their fixed-income exposure. The funds generate income through interest payments and offer the potential for capital appreciation. Investors in Corporate Bond ETFs assess credit quality, considering the creditworthiness of the underlying issuers, to manage risk and align their fixed-income investments with their specific financial objectives and risk tolerance.

Related Terms

Credit Quality, Exchange-Traded Fund (ETF)

ETF Glossary is’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.