For investors seeking momentum, iShares Core U.S. Aggregate Bond ETF (ASX:AGG) is probably a suitable pick. The fund just hit a 52-week high, up roughly 7.3% from its 52-week low of $106.61/share.
But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
AGG in Focus
The fund provides broad exposure to U.S. investment-grade bonds and tracks the BBG Barc U.S. Aggregate Index. AGG is charging 5 bps in fees. The fund has amassed $71.95 billion in AUM (see all Total Bond Market ETFs here).
Why the Move?
The coronavirus has spread really fast over the past week and has infected peoplein United Arab Emirates, India, Hong Kong, Australia, Malaysia, Thailand, France, Japan, Taiwan, Vietnam, Singapore, South Korea, Macao and Nepal, with its epicenter in Wuhan, China. Thus, the panic in global markets is adding to the lure of safer investment picks other than equity investing. This fund is an appropriate core holding for investors seeking exposure to total market bonds. The ETF primarily seeks protection of invested capital along with the scope of maximizing total income in the form of interest and capital appreciation.
More Gains Ahead?
Currently, it seems that AGG might remain strong given a positive weighted alpha of 6.60.
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iShares Core U.S. Aggregate Bond ETF (AGG): ETF Research Reports
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Zacks Investment Research