Fixed Income: U.S. - Broad Market, Broad-based Investment Grade
With 18 ETFs and over $150.99B 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 iShares Government/Credit Bond ETF (GBF), with a total return of 7.74%. Meanwhile, the most popular ETF is the iShares Core U.S. Aggregate Bond ETF (AGG) with $76.44BB 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. The iShares Government/Credit Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated government, government-related and investment-grade U.S. corporate bonds. 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 88 out of 100, with the Schwab U.S. Aggregate Bond ETF(SCHZ) 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 BNY Mellon Core Bond ETF (BKAG) having the lowest expense ratio, charging investors 0% yearly.
Investors should look for funds with tight tracking, such as the Vanguard Total Bond Market ETF (BND), with a 12-month median tracking difference of -0.01%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Broad Market, Broad-based Investment Grade segment is 76 out of 100, with the Vanguard Total Bond Market ETF(BND) obtaining the highest rating of 100 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 577.87M in daily average volume. Investors should also find ample liquidity in the Vanguard Total Bond Market ETF (BND), with $339.44M in daily dollar volume.
Use limit orders to trade funds such as the Franklin Liberty U.S. Core Bond ETF(FLCB), 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 . 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, follows a strategy and obtains a low Fit score compared with our neutral benchmark.