WisdomTree’s other new offering is the WisdomTree Barclays U.S. Aggregate Bond Enhanced Yield Fund (NYSEArca: AGGY). The new ETFs offers the potential for enhanced yield while avoiding bonds with junk ratings.
AGGY is also a low duration option with an effective duration of 0.02 years, according to issuer data. Zero-duration or interest-rate-hedged ETFs that try to negate the negative effects of higher rates have done their job, outpacing unhedged equivalents. Over 39% of AGGY’s holdings are rated A, AA or AAA. [Fixed-Income ETFs That Beat Interest Rate Risk]
“As investors increasingly look for ways to boost the income potential of their portfolios, AGGY provides the opportunity to do so within core fixed income, while continuing to benefit from the diversification of a multi-sector portfolio,” said Rick Harper, WisdomTree head of fixed income and currency, in a statement.
AGGY charges just 0.12% per year.