To Index Bonds or Not?
This series of articles will tackle the basics of bond investing.
Editor's note: This article is part of our "How and Why to Invest in Bonds" series. Click here to read other articles.
Much of the advantage that index-tracking equity funds can have over actively managed funds, where portfolio managers are choosing individual securities, comes from lower costs. For bond funds, where returns are generally lower over time than stock funds, fees can have a substantial impact on an investors’ outcome.