Why were two iShares Bond ETFs downgraded?

Morningstar analysts recently downgraded the Medalist Ratings of two of the largest iShares corporate bond ETFs from Silver to Bronze. This adjustment reflects concerns over their process pillars, especially regarding the ability of active managers to add value through sector selection and tapping into less liquid segments. Despite this, the ETFs continue to offer solid returns, benefiting from low costs and accurate benchmark replication. Discover the reasons behind the downgrade and what it could mean for investors.