The SPDR Barclays Capital Aggregate Bond ETF (NYSEArca: LAG) is more diversified with 9,054 components. However, it is more expensive with an expense ratio of 0.1535%. LAG also has a 2.02% 30-day SEC yield.
The Vanguard Total Bond Market ETF (NYSEArca: BND) has an even more diversified 16,177 components. BND has a 0.08% expense ratio and a 2.08% 30-day SEC yield.
Lastly, the Schwab U.S. Aggregate Bond ETF (NYSEArca: SCHZ) tracks 2,174 securities. SCHZ is the cheapest of the bunch, with a 0.06% expense ratio, and comes with a 2.03% 30-day SEC yield.
Since these four ETFs only track investment-grade debt securities, investors who still want to include some high-yield bonds can take a look at ETF options like the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), which has a 6.03% 30-day SEC yield, and iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG), which has a 5.56% 30-day SEC yield. However, like Ceccarelli warns, investors should not go overboard with their high-yield exposure. [Time to Jump for Junk Bond ETFs? Maybe]
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.