AGG - AGG: A Better Risk-Reward Today (Rating Upgrade)
2024-07-10 23:41:44 ET
Summary
- AGG has turned positive in total return year to date after a pullback in the first four months of 2024.
- Treasury yields have retreated amid tamer inflation prints, high-quality credit remains bid, and the equity/bond correlation is weakening, making AGG more attractive.
- AGG is a cost-effective fund with low fees, large assets under management, and a solid yield-to-maturity, making it a solid choice for risk-conscious long-term investors.
- I highlight macro reasons why now is a good time to own AGG and highlight key price levels to watch in the second half.
The iShares Core U.S. Aggregate Bond ETF ( AGG ) has turned marginally positive in its total return year to date. After a significant pullback through mid-April amid a rate resurgence that corresponded to hot inflation prints over the first quarter, the current reality is that there are dual risks now facing the US economy. ...
AGG: A Better Risk-Reward Today (Rating Upgrade)