Morningstar Rating

ETF Research and Analysis

by Thomas Boccellari
Suitability
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 

2 Flavors for Core Bond Indexers 
Watch more 

Premium Membership

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