The S&P 500/MarketAxess Investment Grade Corporate Bond Index seeks to measure the performance of the largest, most frequently traded bonds issued by high-quality companies in the S&P 500.
1. How does this index compare to broader U.S. investment-grade corporate bond indices?
The S&P 500/MarketAxess Investment Grade Corporate Bond Index captures similar characteristics of the broader U.S. investment-grade market, such as total return, yield, and duration. However, by focusing on the largest, most frequently traded bonds of well-known companies in the S&P 500, the index provides improved relative liquidity versus issues in the broader corporate bond market.
2. How is the S&P 500/MarketAxess Investment Grade Corporate Bond Index constructed?
The S&P 500/MarketAxess Investment Grade Corporate Bond Index is a subindex of the larger S&P 500 Investment Grade Corporate Bond Index. The index was created in an effort to identify the largest, most frequently traded, high-quality bonds issued by members of the S&P 500. The first step in designing the index was to isolate only high-quality issuers.
