20 Best Corporate Bond ETFs
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Introducción
What are the best corporate bond ETFs?
ETFs, or exchange-traded funds, are not just for stocks. Additionally, there are bond ETFs that only invest in fixed-income securities.
Investment grade corporate bond ETFs, which purchase the top-notch debt of financially sound and stable corporations, are a good option for investors who wish to access relatively low-risk corporate bonds.
Corporate bond portfolios focus on investment-grade bonds issued in US dollars by businesses, which often carry a higher level of credit risk than bonds backed by the government or an agency.
These portfolios have less than 40% of their assets in non-U.S. assets and more than 65% of their assets in corporate debt. debt, less than 35% of which is below investment-grade debt, and durations that typically range between 75% and 150% of the Morningstar Core Bond Index’s three-year average effective term.
Here are the 20 best corporate bond ETFs
20 Best Corporate Bond ETFs
1. Schwab 5-10 Year Corp Bd ETF
Prior to fees and expenses, the investment aims to closely resemble the Bloomberg US 5-10 Year Corporate Bond Index’s total return. The investment is one of the best corporate bond ETFs.
The fund typically makes investments in index-compliant securities to achieve its objective. The index tracks the performance of taxable, investment-grade corporate bonds issued in the Estados Unidos with maturities of at least $300 million and as long as ten years.
A minimum of 90% of the fund’s net assets must be invested in securities that are part of the index under normal circumstances, according to its investment policy.
2. Goldman Sachs Acss Invmt Grd Corp Bd ETF
Before fees and expenses, the investment aims to deliver investment results that closely mirror the performance of the FTSE Goldman Sachs Investment Grade Corporate Bond Index (the “index”).
The fund aims to reach its investment goal by purchasing securities that are part of its underlying index with at least 80% of its assets (excluding collateral held from securities lending).
The index, which is rules-based and intended to measure the performance of investment-grade corporate bonds denominated in US dollars (“USD”) that satisfy specific liquidity and fundamental screening requirements, will be used.
3. SPDR® Portfolio Corporate Bond ETF
The goal of the investment is to produce returns that, before fees and expenses, broadly correspond to the price and yield performance of an index that measures the performance of the Bloomberg U.S. Corporate Bond Index.
The fund typically invests nearly all of its assets, but at least 80% of them, in the securities that make up the index as well as in securities that the adviser determines have economic traits that are nearly identical to those of the index’s constituent securities.
The index’s purpose is to assess the performance of the corporate bond market for investment-grade bonds.
4. iShares Broad USD Invm Grd Corp Bd ETF
The investment aims to mimic the performance of the ICE® BofA® US Corporate Index in terms of investments (the “underlying index”). The investment is one of the best corporate bond ETFs.
At least 80% of the assets of the fund will go into the securities that make up the underlying index, and at least 90% of the assets will go into fixed income securities of the kinds that are part of the index, according to the advisor’s assessment of how well the fund will track the index.
The underlying index tracks the performance of both American and foreign investment-grade corporate bonds. publicly traded, dollar-denominated issuers in the domestic market of the United States.
5. SPDR® Portfolio Interm Term Corp Bd ETF
The investment aims to deliver returns that broadly match the price and yield performance of the Bloomberg U.S. Intermediate Corporate Bond Index. The investment is one of the best corporate bond ETFs.
En fund makes investments in securities that make up the index and in securities that, in the adviser’s opinion, have economic traits that are essentially identical to those of the index’s constituent securities.
En fund invests nearly all of its assets—but at least 80%—in these types of securities. The index is intended to track the performance of American corporate bonds with maturities greater than or equal to one year but less than ten years.
6. Vanguard Interm-Term Corp Bd ETF
The investment aims to replicate the performance of a dollar-weighted, intermediate-term market-weighted corporate bond index. The fund uses an indexing investment strategy to follow the Bloomberg U.S. 5-10 Year Corporate Bond Index’s performance.
This index consists of investment-grade, fixed-rate, tax-exempt securities issued by both domestic and foreign issuers denominated in U.S. dollars.
Companies in the industrial, utility, and financial sectors with maturities of five to ten years. Normally, the fund will invest at least 80% of its assets in bonds that are part of the index.
7. iShares iBoxx $ Invmt Grade Corp Bd ETF
The investment’s goal is to replicate the performance of the Markit iBoxx® USD Liquid Investment Grade Index. The investment is one of the best corporate bond ETFs.
The fund will invest at least 80% of its assets in the securities that make up the underlying index, and at least 90% of its assets in fixed income securities of the kinds that are represented in the underlying index, according to the advisor’s assessment that these investments will help the fund follow the performance of the underlying index.
The underlying index is made to give an accurate representation of the market for liquid investment-grade corporate bonds denominated in U.S. dollars.
8. iShares 5-10 Year Invmt Grd Corp Bd ETF
The investment aims to mimic the performance of the ICE® BofA® 5-10 Year US Corporate Index in terms of investments. The investment is one of the best corporate bond ETFs.
At least 80% of the assets of the fund will be allocated to the index’s constituent securities, and at least 90% of the assets will be allocated to fixed income securities of the types represented in the underlying index, according to BFA, in order to better enable the fund to track the index.
The fund will not invest more than 10% of its assets in futures, options, or swaps contracts, or in fixed income securities other than the kinds listed in the index but which BFA believes will aid in the fund’s tracking of the index.
9. iShares ESG USD Corporate Bond ETF
En investment aims to mimic the risk and return characteristics of the parent index of the Bloomberg MSCI US Corporate ESG Focus Index, which is composed of investment-grade corporate bonds issued by U.S.-based companies with favorable environmental, social, and governance characteristics.
The fund will typically invest at least 90% of its assets in the index’s constituent securities and may invest up to 10% in certain futures, options, and swap contracts, cash, cash equivalents, and securities that are not part of the index but that BFA believes will aid in the fund’s ability to track the index.
10. PIMCO Investment Grade Corporate Bd ETF
The investment aims to deliver total return that, before fees and expenses, closely resembles the total return of the ICE BofA US Corporate Index. The investment is one of the best corporate bond ETFs.
The fund makes investments in the securities that make up the ICE BofA US Corporate Index for at least 80% of its total assets, excluding collateral held from securities lending (the “underlying index”).
The underlying index is an unmanaged index made up of investment grade corporate debt securities publicly issued in the domestic market of the United States with at least one year before final maturity.
11. Vanguard Total Corporate Bond ETF
The investment aims to mimic the behavior of the Bloomberg U.S. Corporate Bond Index. The investment is one of the best corporate bond ETFs.
The indexing estrategia de inversión used by the fund of funds, which measures the market for investment-grade, fixed-rate, taxable corporate bonds in the United States, enables it to track the performance of the index.
Securities publicly issued by industrial, utility, and financial issuers denominated in U.S. dollars are included in the index.
12. Inspire Corporate Bond ETF
The investment aims to achieve returns on investments that generally match the performance of the Inspire Corporate Bond Impact Equal Weight Index.
At least 80% of the fund’s total assets are typically allocated to investments in the index’s constituent securities.
The index provider chooses domestic corporate bonds issued by businesses with market capitalizations of $5 billion or more, credit ratings of BBB- or higher from Standard & Poor’s or Baa3 or higher from Moody’s, and businesses with an Inspire Impact Score® of zero or higher.
13. iShares BBB Rated Corporate Bond ETF
The investment aims to replicate the performance of the iBoxx USD Liquid Investment Grade BBB 0+ Index, which is made up of fixed rate, BBB-rated (or equivalent) U.S. dollar-denominated bonds from both domestic and international issuers. business issuers.
The fund will invest at least 90% of its assets in fixed income securities of the types included in the underlying index, which the advisor believes will help the fund track the underlying index.
The fund invests at least 80% of its assets in the component securities of the underlying index. The fund is non-diversified.
14. VanEck Mdy’s Aly BBB Corp Bd ETF
Prior to fees and expenses, the investment aims to closely mimic the price and yield performance of the MVIS® Moody’s Analytics® US BBB Corporate Bond Index. The investment is one of the best corporate bond ETFs.
A minimum of 80% of the fund’s total assets are typically allocated to investments in the securities that make up its benchmark index.
The index consists of corporate bonds issued in the domestic market of the United States that are denominated in dollars and have a BBB rating based on the bond’s composite rating, which is the sum of ratings from different rating agencies. It is non-diversified.
15. JPMorgan Corporate Bond Research Enh ETF
Total return is what the investment aims to deliver. The actively managed fund primarily invests in investment grade corporate bonds from nationally renowned statistical rating agencies or in unrated securities that the fund’s adviser believes to be of comparable quality.
Typically, the fund places at least 80% of its assets in corporate bonds. The fund builds a portfolio of holdings in order to implement its strategy and pursue its investment goal.
This portfolio aims to outperform the Bloomberg U.S. Corporate Bond Index (the benchmark) over time while maintaining comparable risk characteristics.
16. Janus Henderson Sustainable Corp Bd ETF
The investment seeks a total return, which includes income and capital growth, while paying particular attention to a number of environmental, social, and governance (“ESG”) factors.
The fund invests at least 80% of its net assets—plus any borrowings made for investment purposes—in corporate bonds and commercial paper denominated in dollars and with a range of maturities. Investment-grade bonds will make up the majority of the fund’s holdings.
When a portfolio investment no longer presents an appealing investment opportunity or no longer satisfies the fund’s ESG and/or sustainable criteria, the fund will typically sell or dispose of it.
17. Xtrackers Blmbrg US InvmtGrdCorp ESG ETF
The investment aims to produce investment returns that, before fees and expenses, broadly match the performance of the Bloomberg MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index.
The fund will place at least 80% of its total assets, but usually much more, in the financial products that make up the underlying index.
The index generally aims to maintain the broad characteristics of its parent index, the Bloomberg US Corporate Index (an investment grade corporate bond universe), producing a broad exposure to the investment grade fixed income market with ESG considerations.
18. iShares Aaa – A Rated Corporate Bond ETF
The investment aims to mimic the performance of the Bloomberg U.S. Corporate Aaa – A Capped Index in terms of investments. The investment is one of the best corporate bond ETFs.
In order to track the underlying index, the fund will invest at least 80% of its assets in the securities that make up the index, and at least 90% of its assets in fixed income securities of the types represented in the index, according to BFA.
The underlying index is a portion of the Bloomberg U.S. Corporate Index, which gauges the performance of the fixed-rate, taxable, Aaa-rated corporate bond market in U.S. dollars.
19. VanEck IG Corporate ETF
Prior to fees and expenses, the investment aims to closely mimic the yield and price performance of the MVIS® Moody’s Analytics® US Investment Grade Corporate Bond Index. The investment is one of the best corporate bond ETFs.
A minimum of 80% of the fund’s total assets are typically allocated to investments in the securities that make up its benchmark index.
The inndex consists of corporate bonds issued in the domestic market of the United States that are denominated in dollars and have an investment grade rating based on the bond’s composite rating, which is an average of ratings from different rating agencies. It is non-diversified.
20. Fidelity® Corporate Bond ETF
High present income is what the investor aims. Typically, the fund invests at least 80% of its assets in repurchase agreements for investment-grade corporate bonds and other corporate debt securities.
The overall interest rate risk is managed to be comparable to that of the Bloomberg U.S. Credit Bond Index. The fund puts money into debt securities of inferior caliber.
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