GIGB competes with the likes of the Vanguard Total Corporate Bond ETF (NasdaqGM: VTC).
“We would expect this quality-oriented fund to have slightly less credit risk than Vanguard Total Corporate Bond ETF (VTC), which tracks the broad Bloomberg Barclays US Corporate Bond Index,” said Morningstar. “Consistent with this expectation, it has slightly lower exposure to BBB-rated bonds, and slightly greater exposure to AA-rated bonds. However, the regression analysis suggests that the index the fund tracks has tended to exhibit slightly higher exposure to credit risk.”
GIGB’s effective duration is 7.20 years.
For more on fixed income ETFs, visit our Fixed Income category.