Connect with us

archive

Buying Investment-Grade U.S. Bonds

Investment-grade bonds have been surprisingly strong performers this year in defiance of conventional wisdom.

One way to take advantage of rising bond prices is through the iShares Core U.S. Aggregate Bond ETF (AGG), an exchange-traded fund (ETF) that focuses on investment-grade U.S. bonds. As its name implies, the ETF invests in U.S.-based bonds such as Treasuries and high-quality corporate bonds.

With $43.83 billion in total assets, a daily trading volume of $265.3 million and a whopping 6,203 total holdings in its portfolio, AGG is an enormous fund. However, it operates with high efficiency and high liquidity, boasting an expense ratio of only 0.05%, which is considerably lower than most of its rivals.

AGG maintains its liquidity by only lightly investing (about 11%) in long-term bonds that have a maturity date of 20 years or more. Instead, 85% of AGG’s bonds have a maturity date of less than 10 years.

A bond is considered investment grade, if its credit rating is BBB- or higher, as determined by Standard & Poor’s. Roughly 72% of bonds held by AGG are AAA rated, and about 28% are rated in the range of AA to BBB.

Click here to read the full article: “Buying Investment-Grade U.S. Bonds.”

Newsletter Signup.

Sign up to the Human Events newsletter

Advertisement
Advertisement

TRENDING NOW:

Google Anti-Conservative Political Bias Google Anti-Conservative Political Bias

Google Admits It Wants to ‘Prevent The Next Trump Situation’

TECH

Kavanaugh 2.0? Trump’s Rape Accuser E. Jean Carroll Should Face Tougher Questions.

CULTURE

Drag Queen Reading Hour Can Be Stopped.

CULTURE

The New Aylan Kurdi.

U.S. POLITICS

Investment expert Jim Woods shares the details on a mega fund that invests primarily in investment-grade U.S. bonds.

archive

Buying Investment-Grade U.S. Bonds

Investment expert Jim Woods shares the details on a mega fund that invests primarily in investment-grade U.S. bonds.

Investment-grade bonds have been surprisingly strong performers this year in defiance of conventional wisdom.

One way to take advantage of rising bond prices is through the iShares Core U.S. Aggregate Bond ETF (AGG), an exchange-traded fund (ETF) that focuses on investment-grade U.S. bonds. As its name implies, the ETF invests in U.S.-based bonds such as Treasuries and high-quality corporate bonds.

With $43.83 billion in total assets, a daily trading volume of $265.3 million and a whopping 6,203 total holdings in its portfolio, AGG is an enormous fund. However, it operates with high efficiency and high liquidity, boasting an expense ratio of only 0.05%, which is considerably lower than most of its rivals.

AGG maintains its liquidity by only lightly investing (about 11%) in long-term bonds that have a maturity date of 20 years or more. Instead, 85% of AGGâ??s bonds have a maturity date of less than 10 years.

A bond is considered investment grade, if its credit rating is BBB- or higher, as determined by Standard & Poor’s. Roughly 72% of bonds held by AGG are AAA rated, and about 28% are rated in the range of AA to BBB.

Click here to read the full article: “Buying Investment-Grade U.S. Bonds.”

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Jim Woods is a freelance financial journalist specializing in the markets and the economy. He champions the cause of liberty from a secured location deep inside the Golden State.

TRENDING NOW:

Google Anti-Conservative Political Bias Google Anti-Conservative Political Bias

Google Admits It Wants to ‘Prevent The Next Trump Situation’

TECH

Kavanaugh 2.0? Trump’s Rape Accuser E. Jean Carroll Should Face Tougher Questions.

CULTURE

Drag Queen Reading Hour Can Be Stopped.

CULTURE

The New Aylan Kurdi.

U.S. POLITICS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter