In our fund flows/options recap this morning we illustrate a clear rotation into various Short to Intermediate term duration fixed income ETFs that is evident in the marketplace, and one such fund that jumps out at us is CSJ (iShares 1-3 Year Credit Bond, Expense Ratio 0.20%).
The fund has pulled in an impressive $1 billion in recent sessions, bumping its total asset base up to $12.03 billion.
The fund is flirting with multi-year highs ($105.56 was touched on Tuesday of this week) and is categorized as “Investment Grade Corporate”, investing in “investment grade corporate debt and sovereign, supranational, local authority, and non-U.S. agency bonds that have a remaining maturity of at least one year and less than three years” according to ETF Database.
If you break down the individual holdings, one will see that it tilts heaviest toward Corporate Bonds, with a 69.01% allocation, followed by a 20.16% slice allocated to Government Related issues.
CSJ has been popular as a cornerstone type ETF in many advisor and institutional portfolios thanks to its consistent yield over time and conservative exposure to shorter duration investment grade type issues.
CSJ is actually now the second largest ETF in terms of asset size in the greater “Corporate Bond” ETF category, which includes High Yield Corporates as well as Investment Grade, behind LQD (iShares Investment Grade Corporate Bond, Expense Ratio 0.15%) which has approximately $16 billion in assets under management.