From Morningstar: 2024-04-29 04:10:00

Morningstar analyst Shannon Kirwin discusses the surge in popularity of fixed-term bond funds, with €60 billion in inflows in 2023 and €13 billion in Q1 of 2024. Investors seek higher interest rates while minimizing market risk by investing in these funds with set maturity dates. However, caution is advised due to credit risks associated with corporate bonds within these funds. European funds outperform Asian counterparts, but emerging ETFs with lower fees may disrupt the active management landscape in the long term.



Read more at Morningstar: Should I Get Into the Fixed-Term Bond Fund Craze?