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ETF Specialist

A Compelling Option for Exposure to Investment-Grade Corporate Bonds

This Silver-rated ETF offers broad exposure to investment-grade corporate bonds and is one of the cheapest funds in its Morningstar Category.

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IShares Broad USD Investment Grade Corporate Bond ETF (USIG) is a solid choice for investment-grade corporate-bond exposure. This market-value-weighted fund is one of the cheapest in the corporate-bond Morningstar Category, which makes it a compelling option. The fund earns a Morningstar Analyst Rating of Silver.

The strategy tracks the ICE BofAML US Corporate Index, which includes U.S. investment-grade corporate bonds with at least one year to maturity. Qualifying issues must be fixed-rate and have at least $250 million in outstanding face value. The index is market-value-weighted, which pulls the fund toward the largest and most liquid issues.

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