Does etoro offer bonds?

A bond is a tradable instrument that represents a loan made by an investor to the issuer of the bond (usually a government or corporation). The issuer agrees to pay the investor a fixed rate of return over a specified period, often paid monthly. At the end of the period, the bond ‘matures’ or expires, and the initial investment amount is returned to the investor.

The returns on bonds are closely linked to global interest rates, so they are less appealing to investors when interest rates are low.

There are two main approaches to investing in the bond market:

1. Via individual bonds - These have a fixed interest rate and a defined investment period, given by the issuer as described above.
2. Via bond ETFs - These involve buying shares in a fund that consists of numerous bonds issued by more than one entity. As you are not directly buying the bonds, there is no defined investment period or expiry date. Like other ETFs, these can be bought and sold when the relevant market is open.

At etoro, we only offer bonds via ETFs. For more information on bonds, visit our dedicated page on the etoro Academy.