iShares Core U.S. Aggregate Bond ETF (AGG): Duration and Credit Profile Explained

Sonal Goyal

27 October 2026 12:07 AM AEDT

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Key Highlights

AGG had net Assets of $139.16 billion as of 23 October 2026, and the fund's expense ratio is 0.03%.
The fund holds 13,445 securities and tracks the Bloomberg US Aggregate Bond Index.
The most recent distribution was $0.334142 per share, paid on 6 October 2026.

The iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) is a core U.S. bond fund covering the investment-grade market. On 23 October 2026 the fund had a NAV of $95.91 and a closing price of $95.96, and net assets stood at $139.16 billion. The NAV moved by -$0.18 (-0.19%) on the day.

The fund seeks to track an index of U.S. investment-grade bonds, giving broad exposure to the total U.S. bond market. It is listed on NYSE Arca, has traded since 22 September 2003 and pays distributions monthly. This article sets out its structure, portfolio, costs and risk characteristics.

Fund Snapshot

iShares Core U.S. Aggregate Bond ETF reported a NAV of $95.91 and a closing price of $95.96 on 23 October 2026, a premium of 0.05%. There were 1,450,900,000 shares outstanding, and the 30-day median bid/ask spread was 0.01%. Daily Volume was 7,447,196 shares, compared with a 30-day average of 12,802,669.

Index and Objective

The fund tracks the Bloomberg US Aggregate Bond Index and is passively managed against it. Its stated aim is to track an index of U.S. investment-grade bonds, giving broad exposure to the total U.S. bond market. The portfolio held 13,445 securities as of 23 October 2026. The fund may use exchange-traded Index Futures to offset cash and receivables while tracking its benchmark.

Largest Positions

The ten largest positions in the portfolio were BlackRock Cash Institutional (money market) (2.81%), U.S. Treasury note due May 2036 (0.40%), U.S. Treasury note due Feb 2035 (0.40%), U.S. Treasury note due Nov 2034 (0.40%), U.S. Treasury note due Feb 2030 (0.40%), U.S. Treasury note due May 2034 (0.39%). These weights are small relative to the portfolio, which is spread across thousands of securities. The largest line is a Money Market fund used for Cash Management and settlement of to-be-announced transactions, rather than a bond.

Core U.S. Investment-Grade Bonds

AGG tracks the Bloomberg US Aggregate Bond Index and holds 13,445 securities with a weighted average coupon of 3.81 and a weighted average Maturity of 8.16 years. With net assets of $139 billion it is among the largest bond funds in the iShares range, and its 0.03% expense ratio is the lowest of the bond funds in this series. The fund notes that it regularly enters to-be-announced Mortgage transactions.

Costs and Distributions

The total expense ratio stated in the prospectus is 0.03%. The fund's most recent distribution had a record and ex-date of 1 October 2026, was payable on 6 October 2026 and totalled $0.334142 per share, all from income. The prior distribution was $0.337062 per share, with a date of 1 September 2026.

Duration and Credit Characteristics

The fund reported an effective duration of 5.70 years and a weighted average maturity of 8.16 years, a weighted average coupon of 3.81, an option-adjusted spread of 31.21 basis points and Convexity of 0.50. Its Equity Beta was 0.22 and its three-year Standard Deviation 5.57% as of 30 September 2026. Fixed income risks include interest-rate and credit risk: bond prices typically fall when rates rise, and an issuer may Fail to make payments.

Morningstar Ratings

Morningstar gave the fund an overall rating of 3 stars, rated against 421 Intermediate Core Bond funds as of 30 September 2026, and a Gold Medalist Rating effective 25 April 2026.

Final Word

iShares Core U.S. Aggregate Bond ETF (AGG) reported 13,445 holdings, $139.16 billion in net assets and a 0.03% expense ratio as of 23 October 2026.

FAQs

Q: What does iShares Core U.S. Aggregate Bond ETF (AGG) track?

A: It tracks the Bloomberg US Aggregate Bond Index.

Q: What is the expense ratio of AGG?

A: 0.03%.

Q: How many holdings does AGG have?

A: 13,445 holdings as of 23 October 2026.

Q: How often does AGG pay distributions?

A: Monthly. The latest was $0.334142 per share, payable 6 October 2026.

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