Average Daily Volume
8.78M
Fund Overview
The iShares Core U.S. Aggregate Bond ETF (AGG) is designed to provide broad exposure to the U.S. investment-grade bond market. It tracks the Bloomberg U.S. Aggregate Bond Index, which includes U.S. Treasury bonds, government-related bonds, corporate bonds, and mortgage-backed securities (MBS) with maturities of at least one year. AGG is one of the largest and most liquid bond ETFs, making it a popular choice for investors seeking diversified fixed-income exposure. The fund is widely used as a core holding in portfolios due to its low cost and comprehensive coverage of the U.S. bond market. AGG offers a balance of yield and risk, making it suitable for both conservative investors and those looking to diversify equity-heavy portfolios.
- Asset Class
-
Bond
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.39 %
- Currency Hedged
-
No
- Portfolio Turnover
-
89 %
- Dividend Date
-
Why Invest in the AGG ETF?
Potential Benefits
- Provides diversified exposure to the U.S. investment-grade bond market, reducing single-security risk.
- Low expense ratio (0.03% as of 2025) makes it cost-effective for long-term investors.
- High liquidity allows for easy trading and tight bid-ask spreads.
- Acts as a stabilizing force in portfolios during equity market downturns.
- Regular income through monthly distributions of interest payments.
- Broad market coverage includes Treasuries, corporates, and mortgage-backed securities.
Potential Risks
- Interest rate risk: Rising rates can lead to declining bond prices, negatively impacting returns.
- Credit risk: Although investment-grade, corporate bonds in the fund may face downgrades or defaults.
- Inflation risk: Fixed coupon payments may lose purchasing power over time if inflation rises.
- Limited yield potential compared to high-yield or emerging market bonds.
- Prepayment risk for mortgage-backed securities if homeowners refinance at lower rates.
- Duration risk: The fund's average duration affects sensitivity to interest rate changes.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.3%
|
+1.6%
|
-1.8%
|
+0.2%
|
+0.3%
|
+0.3%
|
-1.3%
|
+0.4%
|
-2.6%
|
0.0%
|
-
|
-
|
| 2025 |
+0.5%
|
+2.2%
|
0.0%
|
+0.4%
|
-0.6%
|
+1.5%
|
-0.3%
|
+1.2%
|
+1.1%
|
+0.6%
|
+0.6%
|
-0.3%
|
| 2024 |
-0.2%
|
-1.5%
|
+0.9%
|
-2.5%
|
+1.7%
|
+0.9%
|
+2.4%
|
+1.5%
|
+1.3%
|
-2.5%
|
+1.1%
|
-1.7%
|
| 2023 |
+3.3%
|
-2.7%
|
+2.6%
|
+0.6%
|
-1.1%
|
-0.4%
|
0.0%
|
-0.6%
|
-2.6%
|
-1.6%
|
+4.6%
|
+3.7%
|
| 2022 |
-2.0%
|
-1.1%
|
-2.8%
|
-3.8%
|
+0.8%
|
-1.6%
|
+2.5%
|
-3.0%
|
-4.1%
|
-1.3%
|
+3.8%
|
-0.9%
|
| 2021 |
-0.7%
|
-1.5%
|
-1.1%
|
+0.7%
|
+0.2%
|
+0.8%
|
+1.1%
|
-0.2%
|
-0.9%
|
0.0%
|
+0.3%
|
-0.4%
|
| 2020 |
+2.0%
|
+1.6%
|
-0.5%
|
+1.7%
|
+0.7%
|
+0.7%
|
+1.3%
|
-0.8%
|
-0.1%
|
-0.6%
|
+1.2%
|
+0.1%
|
| 2019 |
+0.9%
|
-0.1%
|
+2.1%
|
-0.2%
|
+1.9%
|
+1.1%
|
+0.2%
|
+2.8%
|
-0.6%
|
+0.2%
|
0.0%
|
0.0%
|
| 2018 |
-1.1%
|
-1.0%
|
+0.7%
|
-0.9%
|
+0.7%
|
+0.1%
|
0.0%
|
+0.6%
|
-0.6%
|
-0.6%
|
+0.5%
|
+2.0%
|
| 2017 |
+0.2%
|
+0.6%
|
-0.1%
|
+0.9%
|
+0.7%
|
0.0%
|
+0.3%
|
+0.9%
|
-0.6%
|
+0.1%
|
-0.1%
|
+0.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: AGG vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
AGG seeks to track the performance of the Bloomberg U.S. Aggregate Bond Index, a market-cap-weighted benchmark representing the U.S. investment-grade bond market. The index includes Treasury bonds, government-related bonds, corporate bonds, and mortgage-backed securities with maturities of at least one year. The fund employs a passive management approach, aiming to replicate the index's holdings and performance. It primarily holds physical bonds rather than derivatives, providing direct exposure to the underlying securities. AGG is rebalanced monthly to align with index changes, ensuring accurate tracking. The fund's broad diversification across sectors and maturities helps reduce concentration risk.
Frequently Asked Questions
What types of bonds does AGG hold?
AGG holds U.S. Treasuries, government-related bonds, investment-grade corporate bonds, and mortgage-backed securities, all with maturities of at least one year.
How often does AGG pay dividends?
AGG distributes interest income to shareholders monthly, providing a steady stream of income.
Is AGG a good hedge against stock market volatility?
Yes, AGG's bond holdings often perform well during equity market downturns, making it a potential stabilizer in diversified portfolios.
What is AGG's average duration?
As of 2025, AGG has an average duration of approximately 6-7 years, indicating moderate sensitivity to interest rate changes.
Can AGG lose value?
Yes, AGG's NAV can decline due to rising interest rates, credit downgrades, or other market factors, though its diversified holdings help mitigate severe losses.
Industry Overview
The iShares Core U.S. Aggregate Bond ETF (AGG) provides exposure to the broad U.S. investment-grade bond market, which includes government, corporate, and securitized debt. This market is a cornerstone of fixed-income investing, offering stability and income generation. The U.S. bond market is influenced by macroeconomic factors such as interest rate policies, inflation expectations, and credit conditions. AGG's diversified approach helps mitigate sector-specific risks while capturing the overall performance of the investment-grade bond universe. Investors often use AGG as a core holding to balance equity risk or as a source of steady income.
Alternative Comparison
AGG's closest competitor is the Vanguard Total Bond Market ETF (BND), which also tracks the Bloomberg U.S. Aggregate Bond Index. While both funds offer similar exposure, AGG has a slightly lower expense ratio (0.03% vs. BND's 0.035%). Another alternative, the Schwab U.S. Aggregate Bond ETF (SCHZ), tracks the same index but has a marginally higher expense ratio (0.04%). Unlike specialized bond ETFs such as LQD (corporate bonds) or TLT (long-term Treasuries), AGG provides comprehensive exposure across the entire investment-grade bond spectrum. Investors prioritizing liquidity may prefer AGG due to its larger asset base and tighter spreads.
Issuer Overview
AGG is issued by iShares, a leading ETF provider and subsidiary of BlackRock, the world's largest asset manager. iShares is known for its extensive lineup of low-cost, index-tracking ETFs across various asset classes. BlackRock's scale and expertise in fixed-income markets contribute to AGG's efficient management and liquidity. The firm's robust risk management and operational infrastructure ensure the fund closely tracks its benchmark index.
Conclusion
The iShares Core U.S. Aggregate Bond ETF (AGG) is a well-established, low-cost option for gaining diversified exposure to the U.S. investment-grade bond market. Its broad coverage, liquidity, and stability make it a suitable core holding for conservative investors or as a diversifier in equity-heavy portfolios. While subject to interest rate and credit risks, AGG's passive approach and efficient tracking provide reliable access to the bond market's income potential. Investors should consider their risk tolerance and investment horizon when incorporating AGG into their strategies.
Boost Your Returns with SectorSurfer
Award-winning investment strategy automation