Bond ETFs Are Popular but Pricing Is a Problem

Updated Oct. 6, 2009 12:01 a.m. ET

As billions of dollars pour into bond exchange-traded funds, cracks are starting to show.

Share prices of many bond ETFs are drifting far from the value of their underlying holdings, which can create big trading costs for investors. Some of the funds are straying from their benchmarks, meaning investors aren't getting the returns they...

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