What is a barbell bond ETF strategy?

A barbell bond strategy typically holds a mix of short-maturity bonds (for liquidity and stability) and long-maturity bonds (for yield and rate sensitivity), with less in the middle.

In ETF form, this can be implemented via a dedicated barbell ETF or by pairing a short-duration ETF with a long-duration ETF. The risk profile can be quite different from an intermediate-duration fund.

If you're considering a barbell approach, understand why you're doing it: you're intentionally taking more exposure at the long end. That can help in falling-rate environments but can hurt when long rates rise.