Very interesting, I havn't seen that before. A lot of people hold a bond ETF/Mutual with no intention of ever selling. It's there as an anchor on the portfolio or as a source of income in retirement. Personally I'd love to be able to ladder maturing bond ETF's. Get the diversity I can't afford independantly in a single security or in the case of a ladder a set of securities. The only thing I don't like is that the second half of this sentence, "The full value investors receive from these funds is equivalent to the face value of all the underlying holdings plus the sum-total of all yield payouts over the life of the fund." If the fund does not pay dividends on a regular basis then you can bet the manager is re-investing those payments to get more profit for him and his compnay. Essentially they are charging you twice, once for the expense ratio and once your opportunity cost of the periodic interest payments. You lose out on the power of compounding. Dirty little hidden fee there.
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