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Big Doesn't Mean Bad for Corporate Bond ETFs

Todd Shriber

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.