ETFs to Buy: iShares Core Total U.S. Bond Market ETF (AGG)
iShares Core Total U.S. Bond Market ETF (AGG) gives your portfolio exposure to the fixed-income area of the investing world via U.S. investment-grade bonds.
The AGG is a fairly conservative fund, with 36% in Treasuries, and 71% of its overall holdings rated AA+ or AAA by S&P. Meanwhile, 65% of the portfolio leans toward the shorter end of the maturity curve at 10 years and under, with the average maturity being a modest 6.78 years.
AGG is a nice, safe bond fund that won’t deliver big returns now, but as the Fed eases up on the QE pedal, rates will begin to rise and send AGG higher.
AGG costs a mere 0.08% in expenses and offers a current yield of 2.1%.