Morningstar Rating

ETF Research and Analysis

by Thomas Boccellari
IShares Core U.S. Credit Bond CRED offers diversified market-cap-weighted exposure to U.S. dollar-denominated, investment-grade corporate (75% of assets) and noncorporate (25% of assets) bonds with at least one year until   Read more 

Bull Case

The fund charges a low 0.15% fee, which compares favorably to the average take of both its ETF and mutual fund peers.
The inclusion of both corporate and noncorporate bonds helps to increase diversification and reduce volatility compared with corporate-only funds. Read more 

Bear Case

Investors looking for a broad, diversified portfolio are likely better served owning a lower-cost fund that tracks the Barclays U.S. Aggregate Bond Index.
The fund does not take any steps to mitigate the adverse impact of rising interest rates.
Investment-grade credit yields are not much higher than yields on Treasuries with comparable interest-rate risk. Read more 

This ETF's Index Is a Victim of Its Own Success 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Premium.