Welcome to our website for Financial Advisors. To visit our site for Individual Investors, please use the drop-down menu next to Financial Professionals to change your selection.

Why you may want to zig when the Agg zags

Our BlogVideos Jan 16, 2018
Edward Kerschner, Chief Portfolio Strategist

The Agg is a fixed-income benchmark — it was never intended to be an investment itself. Here’s the downside to passive products that track the Agg.

Many investors use the Bloomberg Barclays U.S. Aggregate Bond Index (the Agg) as the basis for large fixed-income allocations. But the Agg has become very concentrated — it’s heavily weighted toward government exposure. In this video, Ed Kerschner explains why products that track the Agg may lead to a lack of diversification and why it’s important to look beyond the benchmark to create a more efficient portfolio.

Download transcript

Download this article as a PDF

Edward Kerschner

Edward Kerschner

Chief Portfolio Strategist