IShares Edge U.S. Fixed Income Balanced Risk ETF FIBR is a solid strategy which balances its exposure to interest-rate and credit risk to improve diversification. This is a sound premise as these factors tend to be negatively correlated. But that gives this portfolio greater downside risk and a higher correlation with U.S. stocks than the Bloomberg Barclays U.S. Universal Bond Index. It isn’t clear that the fund will offer better compensation for that risk over the long term, so it earns a Morningstar Analyst Rating of Neutral.
iShares Edge US Fixed Income Bal Rsk ETF FIBR
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will FIBR outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable FIBR’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the FIBR management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of FIBR’s parent organization’s priorities and whether they’re in line with investors’ interests.
This core-plus bond strategy diversifies exposure between credit risk and interest-rate risk.
