The list of the biggest fixed income ETFs in the US will help you to find secure investment opportunities. When choosing fixed income options, most people are looking for large funds, worth billions of dollars that will secure them reliable dividends on an annual basis. Fixed income securities are very popular among retirees and other investors, who aren’t interested in riskier options that can bring them a higher gain.
Many small time investors choose ETFs, without even knowing their true nature or purpose. These funds have been around for the last 24 years, but they have become popular during the last decade. Exchange traded funds currently manage more than $1.34 trillion worth of assets, which is around 10% of the total assets held by investment companies.
ETFs have the same purpose as the index funds. They attract many small-time investors because they can provide a benchmark return at a very low cost. Unlike index funds, exchange traded funds in most cases don’t charge any commission, which makes them more affordable. Fixed income ETFs are even more reliable than the regular ones. They invest money in preferred stocks and bonds, which provide small, but reliable returns.
There are several types of fixed income ETFs, depending on the market segment they choose. These include the ones that invest in Municipal Build America Bonds, Corporate High Yield, Corporate Investment Grade, etc. The biggest fixed-income exchange traded funds are usually managed by the biggest and the most powerful asset management companies, including Black Rock, Vanguard and State Street Global Advisors.
Still, there are many ETFs out there that don’t work on the same principles as index funds. So, if you want to choose an option that will have secured dividends and a very low-risk rate, you should stick to the biggest and the most popular exchange traded funds on the market. These are very transparent when it comes to benchmark. The biggest funds can show off an elaborate trading history to prove that they always matched the widely known benchmarks and provided dividends to investors.
One of the reasons for making this list of biggest fixed income ETFs in the US was to make the quest for fixed income ETFs easier. On Insider Monkey we have several lists that deal with the fixed income securities. If you are looking for a reliable asset management company, check out our list of the biggest fixed income managers in the world.
The information about the fixed income options is hard to find. The ETF platform proved to be the best data source on exchange traded funds and the current market trends that concern the ETF investors. We have used the information about the funds’ assets that we have found on the ETF website’s list, for ranking the biggest fixed income ETFs in the US. In addition to the list data, we have also visited the each fund’s page on the ETF platform and on the website of the company that manages it, to find more information about its characteristics, current state, and prospects.