IUSB ETF

The iShares Core Total USD Bond Market ETF could be a viable countercyclical investment as the equity-bond market correlation may be breaking. IUSB has low expense ratios and high credit quality, but its significant duration makes it sensitive to medium to long-term rate changes. If inflation concerns subside, the Fed may lower rates to support growth, benefiting fixed income, though the economic decline is likely needed first, which is the basis of breaking correlation.

IUSB tracks the Bloomberg U.S. Universal Index (LC07TRUU) which includes investment-grade and high-yield U.S. dollar-denominated bonds. The fund is overweight Treasuries and Agency MBS bonds (57% of holdings) and has a duration of 5.8 years, making it sensitive to interest rates. The ETF has a low expense ratio (0.06%) and low volatility (annualized volatility of 6.4%).

At the close of LSEG Lipper's fund-flows week, U.S. broad-based equity indices reported mixed to negative returns.

iShares Core Total USD Bond Market ETF offers exposure to the entire bond market, including junk bonds. IUSB has a similar performance to the largest "total" bond market ETF, BND, with a slight outperformance over the past 5 years. IUSB is a suitable choice for passive investors who prefer to buy and hold a broad market bond index.

iShares Core Total USD Bond Market ETF is worth considering as stocks become more volatile and bonds are catching a bid. The IUSB ETF provides broad access to the total U.S. Dollar-denominated bond market with a low expense ratio and a 5.22% yield. The fund's diversified holdings and focus on AAA-rated securities make it an enticing option for investors seeking income potential and risk management.