Lower Duration for IGSB
The $10.27 billion IGSB holds nearly 1,000 bonds and has an effective duration of 2.69 years. If interest rates rise, shorter term bond funds may show limited sensitivity to the changes, whereas bond funds with longer durations could take a beating.
IGSB holds short-term U.S. investment-grade corporate bonds with remaining maturities between one and five years.
IGSB charges just 0.06% per year, or $6 on a $10,000 investment.
For more information on the fixed-income market, visit our bond ETFs category.