Morningstar Rating

ETF Research and Analysis

by Thomas Boccellari
Suitability
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 has a low 0.15% fee, which compares favorably to the average take of both its ETF and mutual fund peers.
The fund includes both corporate and noncorporate debt which helps to increase diversification and reduce volatility compared with corporate-only funds. Read more 

Bear Case

Nominal yields on corporate bonds are at the lower end of their historical range.
The fund does not take any steps to mitigate the adverse impact of rising interest rates.
Investment-grade yields are not much higher than comparable Treasury yields. Read more 

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