AGGY holds over 1,500 bonds and has a 30-day SEC yield of 2.93%. AGGY’s effective duration is 6.94 years. Duration measures a bond’s sensitivity to changes in interest rates.
“While the fund does take greater credit risk than its parent benchmark, this risk is still moderate and is more representative of how active managers in the intermediate-term bond Morningstar Category invest,” said Morningstar. “The fund currently allocates roughly half its assets to corporate bonds (20 percentage points more than the Aggregate Index), about 30% to securitized products, and the balance to Treasury securities.”
Nearly 71% of AGGY’s holdings are rated AAA and BBB. The remainder are rated A and AAA, according to issuer data.
For more information on the fixed-income markets, visit our bond ETFs category.