PERFORMANCE

What you need to know about bond indexing

Various bond index strategies, like iShares bond ETFs, have strong performance within their Morningstar categories across a broad range of sectors.

Similar to equity ETFs, many bond ETFs have delivered competitive returns across a variety of sectors, ranking above median in many categories over the long-term.

In general, we would expect an index exposure to deliver the “market return.” However, many iShares bond ETFs have competitive performance relative to other ETFs and mutual funds.

While performance rankings change over time, certain iShares bond ETFs have tended to be above median of performance in their respective Morningstar categories.

Morningstar category percentile rankings based on total return

Like equities, an index strategy does not necessarily mean average returns.

Caption:

Table showing iShares Morningstar fund ETFs category rank percentage and number of funds rated (1, 5, 10 year periods).

Ticker ETF nameMorningstar fund category1 year
% rank
5 Year
% rank
10 Year
% rank
1 Year
# of funds ranked
in category
5 Year
# of funds ranked
in category
10 Year
# of funds ranked
in category
AGGiShares Core U.S. Aggregate Bond ETFIntermediate Core Bond52%48%38%458378270
LQDiShares iBoxx $ Investment Grade Corporate Bond ETFCorporate Bond15%37%31%202169100
MUBiShares National Muni Bond ETFMuni National Interm39%28%22%276236176
TIPiShares TIPS Bond ETFInflation-Protected Bond60%62%31%207189131
EMBiShares J.P. Morgan USD Emerging Markets Bond ETFEmerging Markets Bond55%70%50%242212110
HYGiShares iBoxx $ High Yield Corporate Bond ETFHigh Yield Bond45%69%65%656579425

Source: Morningstar, as of 12/31/23.

Comparison universe is ETFs and mutual funds in the Morningstar category and uses total return. Total return represents changes to the NAV and accounts for distributions from the funds (excluding any applicable sales charges). Percentile ranking in category represents outperformance of the fund’s total return relative to all funds that have the same Morningstar Category.

 

Past performance does not guarantee future results.