A Top-Rated ETF for Aggregate Bond Market Exposure
This fund adheres to the collective wisdom of the market in providing aggregate bond market exposure.
Of the 750-plus fixed-income exchange-traded funds on the menu, iShares Core U.S. Aggregate Bond ETF (AGG) is the largest. It is also one of the oldest fixed-income ETFs, having launched in September 2003. Long the barometer for U.S. investment-grade bonds, AGG's benchmark--the Bloomberg Barclays U.S. Aggregate Bond Index--has changed drastically in the years since the financial crisis. Prior to 2008, Treasury bonds made up approximately 20% of the index. Following a surge in government bond issuance, that number currently now sits at 40%.
Nonetheless, AGG is a great, core investment-grade bond strategy. It sports a conservative portfolio and one of the lowest expense ratios in the intermediate core bond Morningstar Category, earning a Morningstar Analyst Rating of Silver.
Neal Kosciulek does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.