Fixed Income: U.S. - Corporate Investment Grade Intermediate
With 23 ETFs and over $34.13B in combined AUM, the Fixed Income: U.S. - Corporate Investment Grade Intermediate segment provides exposure to the U.S. space with a focus on Investment Grade securities.
Year-to-date, the best-performing ETF in the segment is the iShares iBonds Dec 2021 Term Corporate ETF (IBDM), with a total return of -1.01%. Meanwhile, the most popular ETF is the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) with $18.84BB in assets under management.
Investors should take a look at the Vanguard Intermediate-Term Corporate Bond ETF (VCIT). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Vanguard Intermediate-Term Corporate Bond ETF tracks a market-weighted index of investment-grade corporate bonds with maturities of 5-10 years. VCIT has an expense ratio of 0.07% and tracks the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Corporate Investment Grade Intermediate segment is 88 out of 100, with the SPDR Portfolio Intermediate Term Corporate Bond ETF(SPIB) obtaining the highest rating of 96 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.18% per year, with the iShares 5-10 Year Investment Grade Corporate Bond ETF (MLQD) having the lowest expense ratio, charging investors 0.06% yearly.
Investors should look for funds with tight tracking, such as the iShares iBonds Mar 2023 Term Corporate ETF (IBDD), with a 12-month median tracking difference of -0.07%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Corporate Investment Grade Intermediate segment is 72 out of 100, with the iShares iBonds Dec 2021 Term Corporate ETF(IBDM) obtaining the highest rating of 92 out of 100.
The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is the undisputed segment leader when it comes to liquidity. The fund trades 125.60M in daily average volume. Investors should also find ample liquidity in the iShares Intermediate Credit Bond ETF (CIU), with $49.91M in daily dollar volume.
Use limit orders to trade funds such as the Inspire Corporate Bond Impact ETF(IBD), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays Intermediate U.S. Corporate Bond Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to SPIB. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, BSCP follows a Bullet Maturity strategy and obtains a low Fit score compared with our neutral benchmark.