Aggregate Bond ETFs
Aggregate bond ETFs track the Bloomberg US Aggregate Bond Index (or equivalents), a benchmark of investment-grade fixed income that includes US Treasuries, agency mortgage-backed securities, and investment-grade corporates. They are the default core fixed-income holding for most balanced portfolios.
Available Funds
iShares Core US Aggregate Bond
iShares
Vanguard Total Bond Market
Vanguard
Vanguard Total International Bond
Vanguard
Schwab US Aggregate Bond
Schwab
Frequently Asked Questions
What does the Bloomberg US Aggregate Bond Index include?▼
The Bloomberg US Aggregate is the broadest investment-grade US dollar bond benchmark. It includes US Treasuries (~40%), agency mortgage-backed securities (~25%), investment-grade corporate bonds (~25%), and government-related debt (~10%). It excludes high yield, TIPS, and tax-exempt bonds.
AGG vs BND: which aggregate bond ETF is better?▼
Both track the Bloomberg US Aggregate Bond Index and have nearly identical performance. AGG (iShares) and BND (Vanguard) compete on expense ratios — both are very low. Pick whichever has the lower expense ratio and better tax-lot lot availability in your brokerage.
Is an aggregate bond ETF safe?▼
Aggregate bond ETFs hold only investment-grade bonds, so default risk is very low. However, they have interest-rate risk: when rates rise, the ETF price falls. The average duration is typically 6-7 years, meaning a 1% rate rise produces roughly a 6-7% price decline.
Other Fixed Income Categories
Treasury yields and ETFs from 1-month bills to 30-year bonds.
Sovereign bond ETFs covering developed-market governments outside the US.
Investment-grade corporate debt, sliced by maturity.
Below-investment-grade corporate debt with elevated yields.
Treasuries whose principal adjusts with CPI inflation.
State and local government debt — federal-tax-exempt income.
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