What is a core bond ETF?

A core bond ETF is typically a broad, investment-grade bond ETF meant to anchor the fixed-income portion of a portfolio. Many core bond ETFs track aggregate bond indexes or similar diversified benchmarks.

Core bond ETFs can provide income and diversification versus equities, but they can still decline when rates rise or when credit conditions tighten.

When selecting a core bond ETF, compare duration, sector weights (Treasuries, MBS, corporates), fees, and tracking. The "core" label is helpful, but the actual mix determines how it behaves.