Corporate Bond Definition
Learn the definition of corporate bond and other ETF terminology from the etf.com glossary.
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.
