The Bond ETF is a type of Exchange Traded Fund. Here the investment is made in bonds (like government treasury bonds) withdrawing the money from the shares, especially in times of recession.
Price transparency and liquidity are two most important advantages of Bond ETFs. The historical or current prices of the Bond ETFs are accessible by any investor. Investing in bond ETFs are much cheaper and easier than the bond mutual funds. You can have access to a number of bonds by putting up just $5-$10,000. In Bond ETFs there is a diversified portfolio including government, corporate, municipal, real return, short, medium or long maturity and also international types. Thus, you get a lot of options for investments.
The greatest merit of the Bond ETFs is that it offers protection from continuous change of interest rates. Thus they involve lesser risk. The holders of Bond ETFs get both monthly dividends (in cases of bond interests) and also annual ones on the capital gains.