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The Only 5 ETFs You’ll Ever Need

Beginning investors can start with these 5 basic ETFs

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The Only 5 ETFs You’ll Ever Need

ETFs to Buy: iShares Core Total U.S. Bond Market ETF (AGG)

iShares185 The Only 5 ETFs You’ll Ever NeediShares 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%.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/5-etfs-youll-ever-need/.

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