FIGB vs SKOR

FIGBCFidelity Investment Grade Bond ETF

SKORANorthern Trust Credit-Scored US Corporate Bond ETF

In short

FIGB The name says investment grade, but Fidelity's managers can also reach into high yield and emerging-market debt while keeping interest-rate risk near the Agg. A credit-picking fund wearing a core-bond duration profile.

SKOR Most investment-grade corporate bond funds just buy the market. SKOR scores every eligible bond on issuer quality and relative value, then weights toward the winners, and stays in the one-to-under-10-year maturity lane.

Stated mandate

FIGB The fund seeks a high level of current income by investing primarily in debt securities across investment-grade, high-yield, and emerging-market segments, while maintaining interest-rate risk similar to the Bloomberg U.S. Aggregate Bond Index.

SKOR The Fund seeks to provide pre-fee investment results generally corresponding to the price and yield performance of the Northern Trust US Corporate Bond Quality Value Index.

Why people hold it

• FIGB Active by design: the managers hunt income across investment-grade, high-yield and emerging-market debt while holding interest-rate risk similar to the Bloomberg U.S. Aggregate.
• A 0.36% expense ratio sits right at the median of its core-bond peer group, which is uncommon for a live manager competing against index trackers.
• Income is paid monthly, and the book is a focused roughly 180 positions rather than a thousands-strong index sleeve.
• The portfolio has stayed closely aligned with what its documents promise, and it lands in the upper half of its core-bond peer group.

• SKOR Rules-based scoring, not just size: the index optimizes toward proprietary quality and value scores instead of handing the biggest weight to whoever borrowed the most.sec.gov
• 0.15% net of a waiver through March 1, 2027 (0.16% gross), below the category median and level with the big brand-name corporate bond funds QLTA (0.15%) and LQD (0.14%).
• Tracking has been tight against its index, and it sits in the upper tier of investment-grade corporate bond ETFs on our review.
• Workmanlike plumbing: trading since 2014, over a billion dollars in assets, roughly 1,300 bonds, each issue $250 million or larger, with monthly payouts.sec.gov

Worth knowing

• FIGB Index Aggs like BND and SPAB charge 0.03%. At 0.36%, you are paying roughly twelve times as much for the active credit calls.
• The high-yield and emerging-market sleeves carry credit risk a plain investment-grade index tracker would not take on.
• Moderately traded and mid-sized next to the giant index Aggs, so spreads can run wider, which shows up most on large or hurried orders.

• SKOR Plain-vanilla rivals cost less: SPBO and VTC each charge 0.03%. The scoring screen is what the extra buys.
• Maturities stop short of 10 years, so it skips the long end of the corporate curve and the extra rate sensitivity that comes with it.sec.govflexshares.com
• The record spans two methodologies: the fund switched its objective and underlying index effective April 30, 2020.flexshares.comsec.gov

Full FIGB profile⁠

Full SKOR profile⁠