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Broad Fixed-Income Exposure At a Low Cost

Why iShares Core Total US Dollar Bond Market ETF is more representative of the U.S. bond market than its peers.


Ben Johnson: The iShares Core Total US Dollar Bond Market ETF--the ticker for that is IUSB--was launched in June of this year as part of iShares' expansion of their iShares Core series. Investors can think of this as sort of a core-plus-more exposure.

The iShares Core Aggregate Bond ETF (AGG) and the Vanguard Total Bond Market ETF (BND) both track the [Barclays U.S. Aggregate Bond Index], which offers exposure just to the investment-grade universe of the U.S. bond market. Now, this fund's benchmark--the Barclays U.S. Universal Index--includes, in addition to the investment-grade universe, high-yield bonds, emerging-markets bonds, U.S.-dollar-denominated ones, and other non-investment-grade issues.

Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.