 FlexShares
Core Select Bond Fund (BNDC) is an exchange-traded fund (ETF) that
invests in a diversified portfolio of fixed-income securities. The
fund is designed to provide broad exposure to the U.S.
investment-grade bond market while attempting to minimize volatility
and maximize total returns.
BNDC is managed by FlexShares, a
subsidiary of Northern Trust Asset Management. The fund's objective is
to track the performance of the Northern Trust Core Bond Index, which
is composed of U.S. investment-grade bonds with maturities greater
than one year.
The portfolio of BNDC consists of a mix of U.S.
government, corporate, and mortgage-backed securities, with a focus on
bonds with maturities between five and 10 years. The fund aims to
provide investors with a higher yield than comparable short-term bond
funds, while still maintaining a relatively low level of risk.
BNDC has an exxpense ratio of 0.25%, which is relatively low compared
to other bond ETFs. The fund has been trading since May 2019 and has
accumulated over $150 million in assets under management.
Investors who are looking for exposure to the U.S. investment-grade
bond market may consider adding BNDC to their portfolio. However,
investors should be aware that bond funds are subject to interest rate
risk and may experience losses if interest rates rise. Additionally,
the performance of the fund may be affected by changes in the
creditworthiness of the issuers of the underlying bonds. As with any
investment, investors should carefully consider their investment
objectives, risk tolerance, and time horizon before investing in BNDC
or any other ETF.
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