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2006-12-06 03:47:27 · 4 answers · asked by . . 1 in Business & Finance Investing

in other words which do u like better and why? -Bonds backed by the Fed Gov. or Exchange Traded Funds (ETFS)?-

2006-12-06 03:49:20 · update #1

4 answers

Government bonds are currently paying less than cash right now. If that's what you want, you should purchase a bond fund to diversify your investment with hundreds or thousands of bonds combined. PIMCO funds and American funds are recognized as leaders in the bond business.

2006-12-06 03:56:50 · answer #1 · answered by MR MONEY 3 · 0 0

ETFs are riskier than Govt backed bonds (I am assuming we are talking aboutthe US debt market) Traditional government-backed bonds (as opposed to US govt bonds - a direct obligation of the US) are FNMA ("fannie-mae"") and GNMA"Ginnie-mae" which are mortgage securities.
But your investments should be made on a basis of your risk tolerance and timeline. The older you are or closer you are to retirement (or any point when you are "needing" the money, the less risky your investment profile should be. If you are younger or do not need the money for a long period of time (think 10-20-30 years) the more you are able to take risk.
Exchange traded funds come in all types, from high risk to low risk. There are even govt bond funds as well. Most ETFs will give a summation of their investment style, and should give you an idea of what type of investments they make.
Good luck and ask questions. It's your money.

2006-12-09 16:29:13 · answer #2 · answered by alcaholicrage 2 · 0 0

I prefer Exchange Traded Funds. Bonds don't grow enough for me and their biggest enemy is inflation. A rate on an ETF can keep up on the rate of inflatio n.

2006-12-09 17:13:16 · answer #3 · answered by sis79 2 · 0 0

they are so different you can't compare them. If you are young - no bonds. IAu - gold etf EWA - Australia etf. You don't understand risk here. Not growing your capital enough is the real risk.

2006-12-06 12:16:31 · answer #4 · answered by vegas_iwish 5 · 0 0

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