The bulk of FIXD’s holdings carry high investment-grade credit ratings as almost 30% of the ETF’s holdings are rated between A- and AAA. Another 10.5% carry BBB+ ratings. While FIXD’s roster tilts heavily toward U.S. government and agency debt, the ETF can hold more exciting fare such as corporate bonds, including a small allocation to junk debt, and international bonds.
“Five months is far too early to pass judgement on the performance of FIXD. However, it has given the manager plenty of time to build out their portfolio so we can peek at what they are up to. The current holdings number 225 with an effective duration of 5.63 years and a 30-day SEC yield of 1.60%. Assets in FIXD have just passed $50 million to-date,” according to ETF Daily News.
FIXD charges 0.55% per year, or $55 on a $10,000 investment.
For more information on Fixed Income ETFs, visit our Fixed Income ETFs category.