Morningstar Rating

ETF Research and Analysis

by John Gabriel
For core fixed-income exposure, it doesn't get much cheaper than iShares Core U.S. Aggregate Bond AGG. This broadly diversified fund of U.S. investment-grade bonds can serve as the anchor for the fixed-income slice of investors'   Read more 

Bull Case

This is one of the cheapest aggregate bond funds available.
The fund is made up of high-quality government, securitized, and corporate bonds.
The fund’s rock-bottom expense ratio gives it a leg up over its actively managed peers. Read more 

Bear Case

The fund’s heavy exposure to government- and government-related-bonds reduces its yield relative to corporate and mortgage funds.
The fund’s intermediate duration could hurt its performance if interest rates rise faster (and by more) than expected. Read more 

2 Flavors for Core Bond Indexers 
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