Fixed Income: U.S. - Broad Market, Broad-based Investment Grade Short-Term
With 9 ETFs and over $48.94B in combined AUM, the Fixed Income: U.S. - Broad Market, Broad-based Investment Grade Short-Term 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 PGIM Ultra Short Bond ETF (PULS), with a total return of 0.31%. Meanwhile, the most popular ETF is the Vanguard Short-Term Bond ETF (BSV) with $32.31BB in assets under management.
Investors should take a look at the Vanguard Short-Term Bond ETF (BSV). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. BSV tracks a market-weighted index of US-government bonds, investment-grade corporate and investment-grade international dollar-denominated bonds with maturities of 1-5 years. BSV has an expense ratio of 0.05% and tracks the Bloomberg Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Broad Market, Broad-based Investment Grade Short-Term segment is 87 out of 100, with the JPMorgan BetaBuilders 1-5 Year U.S. Aggregate Bond ETF(BBSA) obtaining the highest rating of 95 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.23% per year, with the Vanguard Short-Term Bond ETF (BSV) having the lowest expense ratio, charging investors 0.05% yearly.
Investors should look for funds with tight tracking, such as the Nuveen Enhanced Yield 1-5 Year U.S. Aggregate Bond ETF (NUSA), with a 12-month median tracking difference of -0.05%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Broad Market, Broad-based Investment Grade Short-Term segment is 73 out of 100, with the Vanguard Short-Term Bond ETF(BSV) obtaining the highest rating of 100 out of 100.
The Vanguard Short-Term Bond ETF (BSV) is the undisputed segment leader when it comes to liquidity. The fund trades 184.53M in daily average volume. Investors should also find ample liquidity in the PIMCO Enhanced Short Maturity Active ETF (MINT), with $104.62M in daily dollar volume.
Use limit orders to trade funds such as the Arrow Reserve Capital Management ETF(ARCM), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays US Universal 1-5 Year 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.