A major advantage of bond index funds is their:
A)higher performance than regular bond funds.
B)ability to shelter income from taxes.
C)relatively low expense ratios.
D)all of the above are true.

Question

Quizplus · Accepted Answer

Bond index funds have relatively low expense ratios compared to actively managed bond funds, which can ultimately result in higher returns for investors. While index funds may not always outperform actively managed funds, the lower expenses make them an attractive option for long-term investors. Bond index funds also provide a way to diversify a portfolio with lower risk and volatility than stocks. While they do not provide tax shelters, they can still be tax-efficient investments.

A Major Advantage of Bond Index Funds Is Their