FYI: Quick question: For bond exposure, is it best to invest in an ETF that tracks the Bloomberg Barclays U.S. Aggregate Bond Index or to buy different ETFs that track different segments of the broad bond index (and, potentially, over- or underweight them according to existing market forces)?
This was a topic of much debate at a panel during the Wealth/Stack conference earlier in September (at which CFRA was a featured presenter alongside Dave Nadig of ETF.com and others). Fellow panelists highlighted how active managers have had success outperforming the popular bond index (much more so than active equity managers succeed in outperforming the broad equity market indices).
Indeed, the 10-year annualized total return for the average Lipper core bond fund of 4.6% as of August 2019 was higher than the index’s 3.9%. However, at the conference, we spent little time discussing how the exposure the “AGG” provides has shifted in the past decade.
Regards,
Ted
https://www.etf.com/sections/blog/shifting-bond-exposures?nopaging=1M* Snapshot AGG:
https://www.morningstar.com/etfs/arcx/agg/quote
