IIGD has an effective duration of just 3.25 years. The fund holds 64 bonds, just 20 percent of which have BBB ratings. Nearly 80 percent of the fund’s holdings are rated AA or A.
The fund’s quality score is calculated based on the bond’s maturity and credit rating. Each bond is scored based on the number of years remaining to maturity, with bonds having fewer years to maturity receiving higher scores.
IIGD charges just 0.13% per year, or $13 on a $10,000 investment, making it cost-effective among smart beta corporate bond strategies.
For more on fixed income ETFs, visit our Fixed Income Channel.