The iShares Core U.S. Aggregate Bond ETF (AGG) is a fixed-income ETF with $138.41 billion in assets under management. AGG seeks to replicate the investment results of the total U.S. investment-grade bond market. With an expense ratio of 0.0300%, AGG offers broad exposure to the U.S. investment-grade bond market at a low cost, making it a core holding for many portfolios. The fund holds over 13,000 securities, providing diversification across various bond issuers and maturities.
iShares Core U.S. Aggregate Bond ETF (AGG) ETF — Price, Holdings & Analysis
The iShares Core U.S. Aggregate Bond ETF (AGG) is a fixed-income ETF with $138.41 billion in assets under management. AGG seeks to replicate the investment results of the total U.S. investment-grade bond market. With an expense ratio of 0.0300%, AGG offers broad exposure to the U.S. investment-grade bond market at a low cost, making it a core holding for many portfolios. The fund holds over 13,000 securities, providing diversification across various bond issuers and maturities.
ETF Overview
The iShares Core U.S. Aggregate Bond ETF seeks to track the investment results of an index composed of the total U.S. investment-grade bond market.
AGG aims to track the performance of the U.S. investment-grade bond market, offering investors a diversified portfolio of fixed-income securities. The ETF achieves this by holding over 13,000 different bonds. A significant portion of the fund is allocated to U.S. bonds, with 66.6% exposure, while 28.4% is allocated to other countries. The fund's top holding is BlackRock Cash Funds Instl SL Agency (BISXX) at 3.20%. AGG's strategy makes it suitable for investors seeking broad exposure to the U.S. investment-grade bond market as a core holding in a diversified portfolio. It provides a convenient and cost-effective way to access a wide range of bonds, including government, corporate, and mortgage-backed securities. The ETF's low expense ratio enhances its appeal for long-term investors.
Risk Metrics
AGG, while providing broad diversification, carries certain risks. A significant portion of its assets are allocated to the United States (66.6%), creating some geographic concentration risk. The fund's sector allocation is heavily weighted in Cash & Others at 100.0%. With a beta of 0.99, AGG's price movements are highly correlated to the broader market. The fund's expense ratio of 0.0300% is relatively low, which helps to minimize the impact of expenses on overall returns. Investors should also be aware of interest rate risk, as rising interest rates can negatively impact bond prices and the fund's NAV. Past performance does not guarantee future results.
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Risk Metrics
Beta: 0.99
Questions & Answers
What is AGG and what does it track?
The iShares Core U.S. Aggregate Bond ETF (AGG) is designed to track the investment results of the total U.S. investment-grade bond market. This means it aims to replicate the performance of a broad index that includes U.S. government bonds, corporate bonds, mortgage-backed securities, and asset-backed securities. As of 2026-03-31, AGG has $138.41 billion in assets under management and holds over 13,000 securities. The fund provides investors with diversified exposure to the U.S. investment-grade bond market through a single investment vehicle.
What is the expense ratio for AGG?
The expense ratio for AGG is 0.0300%. This means that for every $10,000 invested in the fund, the annual cost is $3.00. This is lower than the category average, making AGG a cost-effective option for investors seeking broad exposure to the U.S. investment-grade bond market. The low expense ratio helps to minimize the impact of fees on overall returns, particularly for long-term investors.
What are the top holdings in AGG?
As of 2026-03-31, the top holding in AGG is BlackRock Cash Funds Instl SL Agency (BISXX), comprising 3.20% of the fund's total assets. While specific bond holdings can vary, this cash position provides liquidity and stability to the fund. The fund invests in over 13,000 securities, providing broad diversification across the U.S. investment-grade bond market. The remaining top holdings would consist of a variety of U.S. Treasury bonds, agency bonds, and corporate bonds.
Is AGG a good long-term investment?
AGG can be a suitable long-term investment for investors seeking exposure to the U.S. investment-grade bond market. The fund's low expense ratio of 0.0300% and broad diversification across over 13,000 securities make it a cost-effective and relatively stable option. However, their may be worth researching own risk tolerance and investment objectives before investing. With a dividend yield of 2.52% and a beta of 0.99, AGG's performance is closely tied to the overall bond market. Past performance does not guarantee future results.
How does AGG compare to similar ETFs?
AGG competes with other broad market bond ETFs, such as those offered by Vanguard and State Street. AGG has a large AUM of $138.41 billion, making it one of the largest and most liquid ETFs in its category. Its expense ratio of 0.0300% is competitive with other similar ETFs. AGG's strategy of tracking the total U.S. investment-grade bond market is similar to that of its competitors, but differences in index construction and weighting methodologies may result in slightly different performance outcomes.
Does AGG pay dividends?
Yes, AGG pays dividends. As of 2026-03-31, AGG has a dividend yield of 2.52%. The dividend yield represents the annual dividend income an investor can expect to receive as a percentage of the fund's share price. Dividends are typically paid monthly and are derived from the interest income generated by the bonds held in the fund's portfolio. The actual dividend amount may vary over time depending on market conditions and the composition of the fund's holdings.