As is the case with some competing intermediate-term corporate bond ETFs, IGIB’s credit profile drifts toward the lower end of the investment-grade spectrum. Over 91% of the ETF’s holdings are rated A or BBB.
Typically, many of these funds have significant exposure to the financial services sector due to that sector’s massive issuance of corporate debt during and immediately following the global financial crisis. IGIB is true to that theme as the fund allocates 26.29% of its weight to bond’s issued by banks. Consumer non-cyclical is the fund’s second-largest sector exposure at 15.11%. Six of the ETF’s top 10 holdings are issues from financial services firms.
IGIB has a 30-day SEC yield of 4.02% and charges 0.06% per year.
For more trends in fixed income, visit the Fixed Income Channel.