Morningstar Rating

ETF Research and Analysis

by Thomas Boccellari
IShares Core U.S. Aggregate Bond AGG targets investment-grade government, corporate, and securitized bonds that are denominated in U.S. dollars and weights its holdings by float-adjusted market capitalization. As a result,  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 longer duration than the category average could hurt its performance if interest rates rise. Read more 

This ETF's Index Is a Victim of Its Own Success 
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