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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 shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.