What is a bond ETF's turnover and why does it matter?

Turnover measures how much a fund buys and sells its holdings over a period. In bond ETFs, turnover can be naturally higher because bonds mature and indices "roll."

Higher turnover can increase trading costs and can contribute to tracking differences. In taxable accounts, it can also affect distributions, though ETFs often have structural features that can help manage capital gains.

When comparing similar ETFs, turnover is a useful clue about how active the strategy is and how much hidden trading friction might exist. It's not automatically bad, but it's worth understanding.