GIGB vs KORP

GIGBAGoldman Sachs Access Investment Grade Corporate Bond ETF

KORPBAmerican Century Diversified Corporate Bond ETF

In short

GIGB Most investment-grade corporate bond funds just buy the biggest borrowers. Goldman's index screens the market on liquidity and fundamentals first, then spreads the money across roughly 1,600 bonds for 0.08% a year.

KORP Most corporate-bond ETFs just clone an index. KORP is run by people: an investment-grade core with a dial that can turn toward high yield, held in a three- to seven-year duration lane.

Stated mandate

GIGB The Fund seeks to track the FTSE Goldman Sachs Investment Grade Corporate Bond Index, which measures U.S.-dollar-denominated investment-grade corporate bonds meeting liquidity and fundamental screening criteria.

KORP Seeks current income by emphasizing investment-grade debt and dynamically allocating part of the portfolio to high-yield debt. The strategy uses active fundamental and quantitative analysis and generally maintains three- to seven-year duration.

Why people hold it

• GIGB Costs 0.08% a year, well under the typical investment-grade corporate bond ETF's 0.19%.
• The index screens US dollar investment-grade corporates for liquidity and fundamentals rather than simply following who borrowed the most.gsam.com
• Tracks that index about as tightly as passive bond funds get, and holds roughly 1,600 bonds so no single issuer carries the load.
• Pays monthly, matching how corporate bond coupons tend to land in a portfolio.

• KORP Actively managed, not a tracker. Investment-grade core plus a sleeve that shifts into high-yield debt, a lever index funds in this category don't have.americancentury.com
• Generally runs a three- to seven-year duration, parking rate sensitivity in the intermediate zone instead of the long end.americancentury.com
• The portfolio does what the name says: roughly 400 corporate bonds, global in reach, with a stated monthly income schedule.americancentury.com
• Live since 2018 and sitting in the upper half of a crowded investment-grade corporate field, which is more than most active bond ETFs manage.

Worth knowing

• GIGB Cheap, but not the cheapest shelf: VCIT, USIG and SPIB run at 0.03% to 0.04%. You are paying a few basis points for the screening.
• Broad-maturity corporate credit moves on two levers, interest rates and credit spreads, so it swings more than short-dated bond funds.
• A mid-sized, moderately traded fund rather than a giant, so trading spreads can run wider than the largest names in the category.

• KORP 0.29% a year is above the category median and many times what index heavyweights like VCIT and SPBO charge. The manager's judgment is the thing you're buying.
• That high-yield allocation can push credit risk past a pure investment-grade portfolio. Flexibility cuts both ways.americancentury.com
• Volume is moderate rather than heavyweight, so spreads can run wider than the most-traded names in the corporate-bond aisle.

Full GIGB profile⁠

Full KORP profile⁠