ETFs Help Add Liquidity to a Generally Illiquid Bond Market
October 15, 2019 at 08:00 AM EDT
A myth of exchange-traded funds is that the constant buying and selling could result in inflated stock prices that don’t reflect the true valuation of a particular company. While this is an ongoing debate in the equities market, others view that in the bond market, ETFs are actually a purveyor of liquidity where constant buying and selling is a good thing.