Fixed income

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Common Types of Fixed Income Investments

TypeDescriptionExample
Government BondsIssued by governments; very safeU.S. Treasury Bonds, Australian Government Bonds
Corporate BondsIssued by companies; risk depends on credit ratingApple Bonds, Tesla Bonds
Municipal BondsIssued by local governments; tax benefitsU.S. State Bonds
Certificates of Deposit (CDs)Fixed-term bank deposits with interest1-Year CD at a bank
Fixed-Income ETFsBundles of bonds for diversificationiShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
Preferred StocksHybrid of bonds & stocks, pays fixed dividendsBank Preferred Shares

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