Bond ETFs refer to exchange-traded open-end funds that are listed and traded on stock exchanges and invest in the bond market.

Generally speaking, bond ETFs can be divided into single-market physical bond ETFs and cash bond ETFs.

Single-market physical bond ETFs refer to bonds listed on stock exchanges and ETFs that investors use bond portfolios to subscribe and redeem.

Cash bond ETFs refer to ETFs that track bond indexes and investors use all cash to subscribe and redeem.

Bond ETFs generally use a representative stratified sampling replication strategy to sample bonds with larger scale and better liquidity based on the size, liquidity and other indicators of the component bonds in the underlying bond index.

Bond ETFs generally do not sample illiquid bonds.

As an open-end fund with an indefinite duration, the asset portfolio of bond ETFs is always in the process of dynamic adjustment. Holding bond ETFs is equivalent to holding bonds that will never expire.

Although bond ETFs are good, it does not mean that bond ETFs are guaranteed to make money without losing money.

The component bonds of bond ETFs may fluctuate due to various factors, causing fluctuations in the net asset value of bond ETFs and creating potential investment risks.

Although there is a certain arbitrage mechanism for bond ETFs to keep their transaction prices consistent with their net values, fund transaction prices will be affected by factors such as market supply and demand, and may deviate from the net value of fund shares in the short term.

During subscription, if the investor fails to provide a subscription consideration that meets the requirements, the subscription application may fail; during redemption, if the investor holds insufficient fund shares that meet the requirements or fails to prepare sufficient cash as required, or the fund investment

If the portfolio does not have sufficient redemption consideration that meets the requirements, the redemption application may fail.

Since ETFs have objective risks, investors should give them full consideration when investing.

The yield on bonds is also relatively high. Due to the existence of illiquid bonds, the overall yield is lowered.

However, bond ETFs mainly select bonds with larger scale and better liquidity, so the returns are generally higher than those of direct investment bonds.