Personal Investment Notes

A smattering of fixed income index funds.

Fixed Income Index Funds

AGG – Aggregate Bond Fund (ETF). Emulates the total United States investment-grade bond market as defined by the Lehman Brothers U.S. Aggregate index. 0.20% expense ratio.

BND – Vanguard Total Bond Market (ETF). Emulates Lehman Brothers Aggregate Bond Index. 0.10% expense ratio.

CSJ – ETF. Emulates Lehman Brothers 1-3 Year U.S. Credit index. 0.20% expense ratio.

IEF – iShares iBoxx $ Investment Grade Corporate Bond Fund (ETF). Tracks intermediate-term sector of the U.S. Treasury market. The Index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity of greater than or equal to 7 years and less than 10 years. 0.15% expense ratio.

LQD – ETF. Tracks U.S. investment-grade corporate bond market as defined by the iBoxx $ Liquid Investment-Grade index. 0.15% expense ratio.

TIP – iShares Barclays TIPS Bond Fund. Tracks inflation-protected sector of the United States Treasury market as defined by the Lehman Brothers U.S. TIPS index. 0.20% expense ratio.

NAV vs. Actual Price

The NAV is the *estimated* value of all the assets the ETF holds. NAV is priced throughout the trading day.
The actual price of the ETF is what it sells for on the stock market. The difference between NAV and actual price can vary (premium or discount). The ETFs are *supposed* to have minimal variance between NAV and actual price (unlike closed-end mutual funds).

Big discounts can occur if there is a lack of liquidity of the underlying securities.