Fixed Income: U.S. - Broad Market, Broad-based Investment Grade
With 18 ETFs and over $112.00B in combined AUM, the Fixed Income: U.S. - Broad Market, Broad-based Investment Grade 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 WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY), with a total return of 4.86%. Meanwhile, the most popular ETF is the iShares Core U.S. Aggregate Bond ETF (AGG) with $61.05BB in assets under management.
Investors should take a look at the iShares Government/Credit Bond ETF (GBF). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. GBF tracks a market-value weighted index of US Treasury, agency, and investment grade corporate bonds, excluding securitized debt instruments. GBF has an expense ratio of 0.20% and tracks the Bloomberg Barclays U.S. Government / Credit Bond Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Broad Market, Broad-based Investment Grade segment is 90 out of 100, with the iShares Core U.S. Aggregate Bond ETF(AGG) obtaining the highest rating of 98 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.16% per year, with the SPDR Portfolio Aggregate Bond ETF (SPAB) having the lowest expense ratio, charging investors 0.04% yearly.
Investors should look for funds with tight tracking, such as the iShares Core U.S. Aggregate Bond ETF (AGG), with a 12-month median tracking difference of -0.06%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Broad Market, Broad-based Investment Grade segment is 67 out of 100, with the Vanguard Total Bond Market ETF(BND) obtaining the highest rating of 91 out of 100.
The iShares Core U.S. Aggregate Bond ETF (AGG) is the undisputed segment leader when it comes to liquidity. The fund trades 427.21M in daily average volume. Investors should also find ample liquidity in the Vanguard Total Bond Market ETF (BND), with $199.33M in daily dollar volume.
Use limit orders to trade funds such as the WisdomTree Negative Duration U.S. Aggregate Bond Fund(AGND), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays U.S. Aggregate 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 AGG. 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, BNDC follows a Active strategy and obtains a low Fit score compared with our neutral benchmark.