(AGG) iShares Core U.S. Aggregate - Ratings and Ratios

The iShares Core U.S. Aggregate Bond ETF (NYSE ARCA:AGG) is designed to track the performance of the total U.S. investment-grade bond market, as measured by the Bloomberg US Aggregate Index. The fund achieves this by investing at least 80% of its assets in the component securities of the underlying index and TBA (To-Be-Announced) securities that have similar economic characteristics.

To further enhance its tracking ability, the fund invests at least 90% of its assets in fixed income securities that are representative of the underlying index. This investment strategy enables the fund to provide broad exposure to the U.S. investment-grade bond market, making it a popular choice among investors seeking a diversified fixed income portfolio.

Some key performance indicators (KPIs) for AGG include its yield, duration, and expense ratio. The funds yield is a critical metric, as it reflects the income generated by the underlying bonds. AGGs duration, which measures the funds sensitivity to changes in interest rates, is also an important consideration for investors seeking to manage their interest rate risk. Additionally, the funds expense ratio, which is 0.04%, is relatively low compared to actively managed bond funds, making it an attractive option for cost-conscious investors.

From a portfolio management perspective, AGGs holdings are diversified across various sectors, including Treasuries, Agencies, Corporates, and Mortgages. The funds sector allocation is designed to mirror the underlying index, providing investors with a representative slice of the U.S. investment-grade bond market. As a result, AGG is often used as a core holding in fixed income portfolios, providing a foundation for more targeted investments in specific sectors or credit quality.