Fixed Income: U.S. - Broad Market Investment Grade

BNDC Top Performer Intra-day
Price $24.16
Today’s Change 0.46%
1:51pm 08/09/2018
AGND Bottom Performer Intra-day
Price $43.53
Today’s Change -0.15%
3:45pm 08/16/2018

ETF.com Insight

With 16 ETFs and over $101.74B in combined AUM, the Fixed Income: U.S. - Broad Market 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 Negative Duration U.S. Aggregate Bond Fund (AGND), with a total return of 2.06%. Meanwhile, the most popular ETF is the iShares Core U.S. Aggregate Bond ETF (AGG) with $56.31BB in assets under management.

Investors should take a look at the iShares Core U.S. Aggregate Bond ETF (AGG). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The iShares Core U.S. Aggregate Bond ETF tracks an index of US investment-grade bonds. The market-weighted index includes Treasuries, agencies, CMBS, ABS and investment-grade corporates. AGG has an expense ratio of 0.05% and tracks the Bloomberg Barclays U.S. Aggregate Bond Index.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Fixed Income: U.S. - Broad Market Investment Grade segment is 89 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 0.19% per year, with the Schwab U.S. Aggregate Bond ETF (SCHZ) 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 -0.03%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Fixed Income: U.S. - Broad Market Investment Grade segment is 68 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 329.58M in daily average volume. Investors should also find ample liquidity in the Vanguard Total Bond Market ETF (BND), with $177.54M 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/ Block Liquidity

BND
5
4
3
2
1
AGG
5
4
3
2
1
SCHZ
5
4
3
2
1
SPAB
5
4
3
2
1
AGZD
5
4
3
2
1
AGGY
5
4
3
2
1
NUAG
5
4
3
2
1
AGND
5
4
3
2
1
BNDC
5
4
3
2
1
AGGE
5
4
3
2
1
HQBD
5
4
3
2
1
NUBD
5
4
3
2
1
PBND
5
4
3
2
1
HTAB
5
4
3
2
1
FLDR
5
4
3
2
1
IMFC
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

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 SPAB. 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.

Index Methodology