The Vanguard Total Bond Market ETF (NYSEArca: BND) provides another option to gain exposure to the Barclays U.S. Aggregate Bond Index. BND is the largest ETF to track the benchmark, but the fund provider excludes securities held by the Fed. Nevertheless, Boccellari argues that the exclusion has not provided any noticeable impact on the performance. BND has a 5.6 year duration, a 1.88% 30-day SEC yield and a 0.08% expense ratio.
Additionally, the Schwab U.S. Aggregate Bond ETF (NYSEArca: SCHZ), which also tracks the same index, is the cheapest option available, with a 0.06% expense ratio. However, SCHZ is smaller than its competitors at $1.6 billion in assets under management, compared to BND’s $26.8 billion and AGG’s $24.2 billion. SCHZ has a 1.92% 30-day SEC yield and a 5.16 year duration. [Big Money Loves Fixed Income ETFs]
iShares Core U.S. Aggregate Bond ETF
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.