What's the difference between the bond & stock ETFs?

So what exactly is the difference between the 2 tags now in discovery

  1. Stock ETFs
  2. Bond ETFs
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A stock ETF contains a selected basket of stocks. ETFs might target a particular geography (eg “US”) or a particular company size (eg “small cap”) or a particular sector or theme (eg “pharma” or “ESG”).

A bond ETF contains a selected basket of bonds. These are typically debt issued by governments or companies (so: gov/company borrows money, pays interest on it over time). Generally thought of as being less volatile and lower risk/lower reward than stocks.


Here’s some more info about bonds, in case you’re interested -

We’ve written lots more blog posts like that with explanations of different types of investments in our blog, you can find them here: Introductory wiki 🐣


Baffled :joy: but I have a bond etf in my portfolio!

Baffled about bonds or how bonds can be part of an ETF?

Baffled reading that blog about bonds :flushed:

Yeah, it’s a bit :cold_sweat:

Basically it’s just trading IOUs. Price fluctuates based on how long is left on the bond and how risky it is. Think that’s all I need to know for now since I’m only going to get Bond ETFs

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Well a stock ETF is a collection of stocks

A bond ETF is a collection of debt (I assume less risky as if one defaults the others should be okay)

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