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Is FlexShares Credit-Scored US Corporate Bond ETF (SKOR) a Strong ETF Right Now?
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The FlexShares Credit-Scored US Corporate Bond ETF (SKOR - Free Report) made its debut on 11/12/2014, and is a smart beta exchange traded fund that provides broad exposure to the Investment Grade Corporate Bond ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Flexshares. SKOR has been able to amass assets over $593.28 million, making it one of the average sized ETFs in the Investment Grade Corporate Bond ETFs. SKOR seeks to match the performance of the Northern Trust Credit-Scored US Corporate Bond Index before fees and expenses.
The Northern Trust US Corporate Bond Quality Value Index measures the performance of a diversified universe of intermediate maturity, US - dollar denominated bonds of companies with investment grade credit quality, favourable valuations and enhanced short-term and long-term solvency.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.15% for SKOR, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.75%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Hsbc Holdings Plc Callable Notes Variable-2.01%-9-22-2028accounts for about 0.45% of the fund's total assets, followed by Cash and Broadcom Inc Callable Notes Fixed 5.05%-5.05%-7-12-2029.
The top 10 holdings account for about 3.33% of total assets under management.
Performance and Risk
So far this year, SKOR has gained about 6.87%, and it's up approximately 7.07% in the last one year (as of 11/03/2025). During this past 52-week period, the fund has traded between $47.30 and $49.50.
SKOR has a beta of 0.22 and standard deviation of 4.28% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 1757 holdings, it effectively diversifies company-specific risk .
Alternatives
FlexShares Credit-Scored US Corporate Bond ETF is a reasonable option for investors seeking to outperform the Investment Grade Corporate Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB) tracks Bloomberg Barclays Intermediate U.S. Corporate Index and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) tracks Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index. SPDR Portfolio Intermediate Term Corporate Bond ETF has $10.67 billion in assets, Vanguard Intermediate-Term Corporate Bond ETF has $56.29 billion. SPIB has an expense ratio of 0.04% and VCIT changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Investment Grade Corporate Bond ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is FlexShares Credit-Scored US Corporate Bond ETF (SKOR) a Strong ETF Right Now?
The FlexShares Credit-Scored US Corporate Bond ETF (SKOR - Free Report) made its debut on 11/12/2014, and is a smart beta exchange traded fund that provides broad exposure to the Investment Grade Corporate Bond ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Flexshares. SKOR has been able to amass assets over $593.28 million, making it one of the average sized ETFs in the Investment Grade Corporate Bond ETFs. SKOR seeks to match the performance of the Northern Trust Credit-Scored US Corporate Bond Index before fees and expenses.
The Northern Trust US Corporate Bond Quality Value Index measures the performance of a diversified universe of intermediate maturity, US - dollar denominated bonds of companies with investment grade credit quality, favourable valuations and enhanced short-term and long-term solvency.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.15% for SKOR, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.75%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Hsbc Holdings Plc Callable Notes Variable-2.01%-9-22-2028accounts for about 0.45% of the fund's total assets, followed by Cash and Broadcom Inc Callable Notes Fixed 5.05%-5.05%-7-12-2029.
The top 10 holdings account for about 3.33% of total assets under management.
Performance and Risk
So far this year, SKOR has gained about 6.87%, and it's up approximately 7.07% in the last one year (as of 11/03/2025). During this past 52-week period, the fund has traded between $47.30 and $49.50.
SKOR has a beta of 0.22 and standard deviation of 4.28% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 1757 holdings, it effectively diversifies company-specific risk .
Alternatives
FlexShares Credit-Scored US Corporate Bond ETF is a reasonable option for investors seeking to outperform the Investment Grade Corporate Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB) tracks Bloomberg Barclays Intermediate U.S. Corporate Index and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) tracks Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index. SPDR Portfolio Intermediate Term Corporate Bond ETF has $10.67 billion in assets, Vanguard Intermediate-Term Corporate Bond ETF has $56.29 billion. SPIB has an expense ratio of 0.04% and VCIT changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Investment Grade Corporate Bond ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.