AGG - SCHZ: A One-Stop Shop Bond Solution

2024-05-03 16:03:16 ET

Summary

• Bonds are becoming more attractive as the Fed is done hiking rates, making the Schwab U.S. Aggregate Bond ETF™ worth considering.
• The SCHZ ETF has a low-cost structure with an expense ratio of just 0.03%, making it a cost-effective option for investors.
• The ETF offers broad diversification, passive management, and transparency, but carries risks such as interest rate, credit, inflation, and concentration risk.

I think bonds are getting increasingly more attractive from an asset allocation perspective given the Fed seemingly done with hiking rates. We went through the greatest bear market in history for bonds, which means on a go-forward basis, we likely have a better set of future return potential for bonds overall....

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