“The new suite of three iShares corporate bond ETFs supports a highly flexible and uniquely modular portfolio management approach to the corporate credit spectrum. Now investors have the ability to tactically tilt fixed income strategies as needed to overweight or underweight portions of the corporate credit spectrum based on quality and yield,” Tucker added.
In comparison, the iShares iBoxx $ Investment Grade Corporate Bond Fund (NYSEArca: LQD) mainly holds corporate debt with credit ratings between A+/A1 to BBB/Baa2, including an average maturity of 11.96 years and an average coupon of 5.33%. LQD has an expense ratio of 0.15% and a 30-day SEC yield of 3.49%. [ETF Chart of the Day: Corporate Bonds]
The iShares iBoxx $ High Yield Corporate Bond Fund (NYSEArca: HYG) largely focuses on BB+/Ba1 to B-/B3 corporate bonds, with an average maturity of 5.11 years and an average coupon of 8.06%. HYG has an expense ratio of 0.50% and a 30-day SEC yield of 6.62%. [ETF Spotlight: High-Yield Corporate Bonds]
For more information on corporate bonds, visit our corporate bonds category.
Max Chen contributed to this article.