Morningstar Rating

ETF Research and Analysis

by John Gabriel
Suitability
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 

ETF trends in Canada: Fixed income 
Watch more 

Premium Membership

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