Fixed Income: U.S. - Corporate, Broad-based Investment Grade
With 27 ETFs and over $57.23B in combined AUM, the Fixed Income: U.S. - Corporate, 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 Inflation Hedged Corporate Bond ETF (LQDI), with a total return of 5.33%. Meanwhile, the most popular ETF is the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) with $41.82BB in assets under management.
Investors should take a look at the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. LQD tracks a market-weighted index of US corporate investment-grade bonds across the maturity spectrum. LQD has an expense ratio of 0.14% and tracks the Markit iBoxx USD Liquid Investment Grade Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Corporate, Broad-based Investment Grade segment is 83 out of 100, with the iShares Aaa-A Rated Corporate Bond ETF(QLTA) obtaining the highest rating of 94 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 SPDR Portfolio Corporate Bond ETF (SPBO) having the lowest expense ratio, charging investors 0.03% yearly.
Investors should look for funds with tight tracking, such as the PIMCO Investment Grade Corporate Bond Index ETF (CORP), with a 12-month median tracking difference of -0.01%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Corporate, Broad-based Investment Grade segment is 72 out of 100, with the iShares iBoxx USD Investment Grade Corporate Bond ETF(LQD) obtaining the highest rating of 100 out of 100.
The iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) is the undisputed segment leader when it comes to liquidity. The fund trades 1.76B in daily average volume. Investors should also find ample liquidity in the iShares Broad USD Investment Grade Corporate Bond ETF (USIG), with $56.00M in daily dollar volume.
Use limit orders to trade funds such as the Invesco Fundamental Investment Grade Corporate Bond ETF(PFIG), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays US Aggregate Corporate 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.