The million pound portfolio - How bond ETFs can help build better portfolios

Bond ETFs provide access to a wide variety of exposures, from pure single country government bonds to multi-currency, global corporate bonds. Much like traditional bond funds, the significantly smaller minimum required investment in bond ETFs than would be necessary to achieve the same level of diversification by purchasing individual bonds, is providing investors increased flexibility in portfolio construction. On top of that, trading characteristics of bond ETFs allow for nimble, transparent and cost effective access to fixed income beta, giving investors a set of tools to use either standalone in portfolios or within multi-asset portfolios such as equities.