TOTAL BOND FUND

Exchange-traded fund or mutual fund seeking to mirror a broad bond index by holding several securities across various maturities, both from public and private sectors. Lehman Aggregate Bond Index is the most common index used as benchmark, which trails corporate bonds, municipal bonds, high-grade mortgage-backed securities, and Treasury bonds. This bond may invest in bonds with the same maturity, class, and rating to mimic an issue not available for purchase by the fund. Such restrictions are placed due to bond markets’ diversity and relative illiquidity.