AGG

AGG is primarily known as the ticker symbol for the iShares Core U.S. Aggregate Bond ETF, a fund managed by BlackRock. The fund aims to track the Bloomberg U.S. Aggregate Bond Index, providing broad exposure to U.S. investment-grade debt and serving as a core component of many fixed-income portfolios.

Portfolio and index approach: AGG seeks to replicate the composition of the Bloomberg U.S. Aggregate Bond Index. The index covers U.S. investment-grade bonds across government, government agency, mortgage-backed (MBS), and corporate sectors, excluding municipal bonds. The ETF uses a passive, full-replication strategy to mirror the index’s sector weights and overall duration, delivering a widely diversified basket of bonds in a single tradable security.

Usage and risk: AGG is commonly used by investors to obtain broad exposure to U.S. investment-grade debt in a cost-efficient, transparent way. It is considered a core fixed-income holding for passive portfolios. Risks include sensitivity to interest-rate movements and credit risk within the corporate and mortgage sectors, as well as liquidity risk during market stress. Because it tracks a broad index rather than selecting individual securities, its performance generally mirrors broad bond-market trends rather than stock-picking opportunities.

Overview and context: As with any investment, potential investors should review current fund documentation for up-to-date holdings, risk factors, and expense information. AGG is one of several fixed-income options in the iShares line designed to provide low-cost, diversified access to the U.S. bond market.