Related: Possible Carnage in the Bond Market
Currently, CIU holds over 2,600 bonds with an effective duration of 4.47 years. Duration measures a bond’s sensitivity to changes in interest rates. Approximately 92% of the fund’s holdings have maturities ranging from three years to 10 years.
Credit risk is mostly benign with this bond fund as over 84% of its holdings are rated A or BBB. CIU has a 30-day SEC yield of 3.48%. It is one of the least expensive funds in its category with an annual fee of just 0.06%, or $6 on a $10,000 investment.
For more trends in fixed income, visit the Fixed Income Channel.