An exchange traded fund (ETF) that provides exposure to a basket of debt securities such as bonds, notes, T-bills, etc. A debt ETF allows investors to invest in fixed income securities, i.e., to have exposure to a basket of underlying securities, whether in the form of a customized basket or an index.

Similar to stock ETFs and equity ETFs, it is a type of passive investing in securities issued by companies or government agencies, reflecting an exposure to the performance of underlying an issuer’s profitability or creditworthiness (ability to serve underlying debts).

Examples of debt ETFs include subordinated debt ETFs, bond ETFs, corporate bond ETFs, government bond ETFs, real estate bond ETFs, target maturity debt ETFs, among others.