Morningstar Rating

ETF Research and Analysis

by Thomas Boccellari
Suitability
Schwab U.S. Aggregate Bond ETF SCHZ targets investment-grade government, corporate, and securitized bonds that are denominated in U.S. dollars and weights its holdings by float-adjusted market capitalization. As a result,  Read more 

Bull Case

This is the cheapest aggregate bond fund available.
The fund is made up of high-quality government, securitized, and corporate bonds.
The fund’s rock-bottom expense ratio gives it a leg up over its actively managed peers. Read more 

Bear Case

The fund’s heavy exposure to government- and government-related-bonds reduces its yield relative to corporate and mortgage funds.
The fund’s longer duration than the category average could hurt its performance if interest rates rise. Read more 

2 Low-Cost ETFs for Broad U.S. Stock Exposure 
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