Weighting stocks by market value is the most frequently used weighting scheme among index funds and exchange-traded funds (ETFs). This is also true among fixed income ETFs, including corporate bond funds. What that means is that the largest holdings in traditional corporate bond ETFs, such a the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), are the biggest issues. Read More...
Big Doesn’t Mean Bad for Corporate Bond ETFs
Weighting stocks by market value is the most frequently used weighting scheme among index funds and exchange-traded funds (ETFs). This is also true among fixed income ETFs, including corporate bond funds. What that means is that the largest holdings in traditional corporate bond ETFs, such a the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), are the biggest issues.
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