AGGM ETF: What Is It? A Complete Guide to Returns, Fees, Holdings and Alternative ETFs
The iShares 1-10 Year U.S. Aggregate Bond ETF (AGGM) holds a broad mix of short- to intermediate-maturity U.S. investment-grade bonds to reduce interest rate sensitivity. This guide covers its monthly distribution flow, low fee level, and how to use it depending on the bond market outlook.
SubscribeWhat Is the iShares 1-10 Year U.S. Aggregate Bond ETF?
The fund tracks an index of U.S. investment-grade bonds whose effective maturities fall in the short- to intermediate-term range. It holds Treasuries, agency bonds, corporate bonds and securitized bonds at market-value weights, replicating the short- to intermediate-term segment of the U.S. aggregate bond market as it is.
It suits conservative investors who want to avoid the large price swings of long-term bonds, diversify across U.S. investment-grade bonds and receive interest income every month.
It is a passively managed (index-tracking) ETF run by iShares (BlackRock).
How Do You Invest in the iShares 1-10 Year U.S. Aggregate Bond ETF?
| Item | Details |
|---|---|
| Tracked index | Short- to intermediate-maturity index of U.S. investment-grade aggregate bonds |
| Management style | Passive (index tracking, sampling) |
| Rebalancing frequency | Monthly |
| Dividend/distribution frequency | Monthly distributions |
| Total expense ratio | 0.03% |
| Manager | iShares (BlackRock) |
The fund holds U.S. dollar-denominated investment-grade bonds with short- to intermediate-term effective maturities, weighted by market value. Treasuries make up the largest share, followed by securitized bonds such as mortgage-backed securities and corporate bonds. The structure keeps the sector makeup of the aggregate bond index while stripping out only the long-dated maturities.
- Excludes long maturities, giving a shorter duration than the aggregate bond market
- Broad diversification across Treasuries, securitized bonds and corporate bonds
- Low fees, at the bottom end of the industry
iShares 1-10 Year U.S. Aggregate Bond ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $130.1M, and the total expense ratio is 0.03% per year.
Because it is an index product holding thousands of bonds, individual bond risk is small. However, trading volume is lower than that of large aggregate bond ETFs, so it is wise to check the bid-ask spread when trading.
iShares 1-10 Year U.S. Aggregate Bond ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeReturns move mainly with the direction of market interest rates. With maturities concentrated in the short- to intermediate-term range, the fund has tended to fall less than long-term bond ETFs when rates rise, while its gains have been relatively limited when rates fall.
When the rate path is uncertain, demand to reduce long-term bond risk gathers in short- to intermediate-term aggregate bond products like this one. The main investors are those who want higher interest than cash-like assets offer while keeping duration exposure low.
iShares 1-10 Year U.S. Aggregate Bond ETF Strengths and Weaknesses
Low fees, broad diversification and short duration are its strengths, while interest rate moves and modest trading volume are points to check.
💪 Key Strengths
⚠️ Points to Watch
iShares 1-10 Year U.S. Aggregate Bond ETF Alternative ETFs and Related Products
Because comparable ETF data for a table is limited, this section outlines alternatives from an asset-class perspective. To hold the entire U.S. aggregate bond market without maturity limits, there are large aggregate bond products such as AGG and BND. To keep duration even shorter, short-term aggregate bond products such as ISTB are also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 BND | Vanguard Total Bond Market ETF | $70.75 | +0.0% | $164.5B | 0.03% | 4.15% | -5.8% |
 AGG | iShares Core U.S. Aggregate Bond ETF | $95.30 | +0.0% | $138.4B | 0.03% | 4.16% | -5.9% |
 BNDX | Vanguard Total International Bond ETF | $47.09 | -0.0% | $84.2B | 0.07% | 4.67% | -5.6% |
 IUSB | iShares Core Universal USD Bond ETF | $44.43 | +0.0% | $49.3B | 0.06% | 4.37% | -5.7% |
 BSV | Vanguard Short-Term Bond ETF | $76.53 | +0.0% | $46.3B | 0.03% | 4.11% | -3.4% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 USLM | United States Lime & Minerals Inc | 0.07% | $106.59 | +0.1% | $3.1B | 22.8 | 0.23% |
iShares 1-10 Year U.S. Aggregate Bond ETF Investor Checkpoints
These are the points to check before investing in the iShares 1-10 Year U.S. Aggregate Bond ETF. Even for a bond fund, interest rate, credit and currency variables should be reviewed in advance.
| Checkpoint | What to check | Current status |
|---|---|---|
| 💵 Fees | Check cumulative costs over a long holding period | Low level |
| 📉 Rate sensitivity | Review duration and the rate outlook | Short- to intermediate-term range maintained |
| 💧 Liquidity | Daily trading volume and bid-ask spread | Needs checking |
| 💱 Exchange rate | Impact on returns converted to won | No currency hedge |
Prices fall when rates rise, and because of its mortgage-backed securities allocation there is also prepayment risk. Some corporate bonds are affected by wider credit spreads during an economic slowdown.
It is a short- to intermediate-term core bond product suited to investors who want to reduce long-term bond volatility while diversifying across U.S. investment-grade bonds. We recommend checking trading volume and the rate outlook together before trading.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of October 8, 2026.
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