pawn

Not all cupons are distributed since the fund has costs.

The type of income received should keep it's characteristics - the distribution is still interest not dividend (there are some specialized funds that turn interest payments into capital gains but not regular ones like AGG)

Etfs are better to use because of diversification and cost (especially for small investors) but you lose some of the tactical approach (you can choose more specific funds if you have a view on duration/credit targets you want to reach)