Masters in Business · Thursday, July 2, 2026
Stephen Lately points out that bond ETFs like iShares provide significant advantages in terms of liquidity and cost compared to holding individual bonds. Investors can sell ETF holdings easily on an exchange, and the trading costs are considerably lower than those for individual bonds.
“So with something like an eyebond, let's just say you decided to liquidate the entire ladder, you get the benefit of the ETF liquidity, just as you would in a traditional investment grade ETF like LQD or what have you.”
“The other part of it is just really really understanding what you own and the ability to trade cheaply relative to individual bonds. So ets, you know, trade for bid esque spreads of pennies on exchange. Individual bonds can be multiples of that, right, So that's that's sort of the final thing.”