Cap Weighting Isn’t Necessarily Risky With These Bond ETFs

MarketsETF Trends

This article was originally published on ETFTrends.com.

As is the case with many equity-based exchange traded funds, some of the largest fixed income ETFs use cap-weighted indexes, meaning the largest debtors are among those funds’ top holdings. That includes the iShares iBoxx $ Invmt Grade Corp Bd ETF (NYSEArca: LQD), the largest corporate bond ETF. LQD seeks to track the investment results [...]

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