ETF Research and Analysis

by Eric Jacobson
Suitability
IShares Core U.S. Aggregate Bond AGG is among the cheapest ways to anchor a portfolio with core fixed-income exposure. Its bogy, the Barclays U.S. Aggregate Bond Index, is the industry standard, though it has some limitations.  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 

ETF trends in Canada: Fixed income 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.