MIG ETF

This Q&A answers key questions about MIG and MBBB ETFs and explains how investment-grade corporate bonds offer higher yields than U.S. Treasuries with limited credit risk, making them a strong core choice.

As highlighted by a year-to-date gain of 5.12% by the Markit iBoxx USD Liquid Investment Grade Index, investment-grade corporate debt has been one of the better-performing corners of the bond market. Some experts believe the theme will continue in the coming months.

BBB-rated corporate bonds are fixtures in a variety of actively managed funds and exchange traded funds. Why? Because that form of debt offers attractive yields while not residing in speculative territory.

Amid expectations that the Federal Reserve will lower interest rates this year, perhaps multiple times, there's optimism that corporate bonds and the related exchange traded funds could be in for another round of solid annual performances. Encouraging as that may be, advisors and investors still need to exercise discretion in the corporate bond universe.