How bonds can calm anxious investors

Target-maturity bond funds guarantee a certain amount will be accessible on the maturity date.

There is such a large number of bonds that investors can feel overwhelmed simply by all the options available to them. The solution: managed bond funds.

In an article Dec. 24, 2018, on U.S. News & World Report:

They are better than individual bonds due to the diversification of default risk and the liquidity of the ETF structure. Plus, professional managers make the investment decisions, so there might be some cost savings there, too.

– Geoffrey Smith, clinical associate professor of finance