Bloomberg barclays index definitions
The Bloomberg Barclays US Aggregate Bond Index , or the Agg , is a broad base, market capitalization -weighted bond market index representing intermediate term investment grade bonds traded in the United States. Investors frequently use the index as a stand-in for measuring the performance of the US bond market. In addition to investment grade corporate debt, the index tracks government debt , mortgage-backed securities MBS and asset-backed securities ABS to simulate the universe of investable bonds that meet certain criteria. Index funds and exchange-traded funds are available that track this bond index. The index has been maintained by Bloomberg L.
Bloomberg Barclays Aggregate Bond Index
If you've ever invested in a total bond market index fund, you've invested in a mutual fund or exchange-traded fund ETF that passively tracks the performance of the Bloomberg Barclays US Aggregate Bond Index. Learn more about this broad-based bond index and the funds that invest in it to see if these funds are right for you.
The index covers all major types of bonds, including taxable corporate bonds, Treasury bonds, and municipal bonds. Because of its wide range of bond market coverage, bond funds that track this index are often called " total bond index funds. Investors can capture the performance of the overall bond market by investing in a mutual fund or an exchange-traded fund ETF that seeks to replicate the performance of the index.
ETFs that track the index include the Schwab U. There are several benefits of investing in an aggregate bond index fund, including broad diversification, simplicity, passive management, low expenses, and long-term performance. Here are details on the benefits of aggregate bond index funds, AKA, total bond market index funds:. Over time, especially for periods of 10 or more years, the low costs of index funds help them to outperform most actively-managed mutual funds.
This enables investors to capture the entire U. While index funds can be smart investments for almost any type of investor, they may not be right for everyone. As is the case with any other mutual fund or ETF purchasing decision, investors should be sure that a fund tracking the Bloomberg Barclays US Aggregate Bond Index meets their investment objectives and is suitable for their tolerance for risk.
It's also wise to be sure the fund complements other holdings in the portfolio. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results.
Investing involves risk including the possible loss of principal. ETF Data Base. Aggregate Bond Index. Mutual Funds Glossary. Full Bio Follow Linkedin. Follow Twitter. Kent Thune is the mutual funds and investing expert at The Balance. He is a Certified Financial Planner, investment advisor, and writer.
Read The Balance's editorial policies. Aggregate Bond Index is gaining the ability to invest in several different bond types , such as corporate bonds, municipal bonds, and US Treasuries with a range of different maturities and duration.
These can include short-term, intermediate-term, and long-term bonds, all in one fund. Simplicity: The bond market can be even more complex and difficult to predict than the stock market, so bond index funds can be smart holdings for investors who want to passively invest in the U.
A total bond index can also be used as a core holding in a diversified portfolio of investments. Passive Management: Since index funds are passively managed, there is no risk that the fund manager s will make errors in judgment, such as poor timing or emotion-based trades, that can potentially hurt performance. Low Expenses: Because passively-managed funds require less cost to manage, expenses can be kept low, which can lead to performance advantages over time.
Article Table of Contents Skip to section Expand. What Is It? Investing in the Aggregate Bond Index. Benefits of Investing. The Bottom Line. Article Sources. Continue Reading.
Compare performance, returns, and yields for sovereign and corporate bonds around the world. Get updated data for Bloomberg Barclays Indices. The Bloomberg Barclays Indices offer unmatched market coverage, including global fixed income, inflation-linked and swap benchmark indices.
Below are definitions for the Aegon AM fixed income investment strategy benchmarks. It is not possible to invest in an unmanaged index. The index represents the union of the US high yield, the pan-European high yield, and emerging markets hard currency high yield Indices.
If you've ever invested in a total bond market index fund, you've invested in a mutual fund or exchange-traded fund ETF that passively tracks the performance of the Bloomberg Barclays US Aggregate Bond Index.
Anchoring: Anchoring refers to the behavioral tendency to make estimates with a biased relationship toward an initial reference value. Dovish: Dovish refers to the views of a policy advisor for example, at the Bank of England that are positive on inflation and its economic impact, and thus tends to favor lower interest rates. The shorter the duration of a bond, the less its price will potentially change as interest rates go up or down; conversely, the longer the duration of a bond, the more its price will potentially change.
Bloomberg Fixed Income Indices
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Global Indexes and Investing Terminology
The Agg, formerly known as the Bloomberg Barclays Aggregate Bond Index, is an index used by bond traders, mutual funds, and ETFs as a benchmark to measure their relative performance. The index includes government securities, mortgage-backed securities MBS , asset-backed securities ABS , and corporate securities to simulate the universe of bonds in the market. Theirs were two indices: one that tracked the universe of U. The more modern version that came to be known first as the Lehman Aggregate Bond Index was created in by Lehman Brothers to provide aggregate exposure to the U. Following this acquisition, the index was officially renamed as the Barclays Capital Aggregate Bond Index, which still retained the function and value of the Lehman Aggregate Bond Index. In , through a series of acquisitions, it became the Bloomberg Barclays Bond Index, and that co-branding between Bloomberg and Barclays was to last for its first five years. It is weighted according to market capitalization, which means the securities represented in the index are weighted according to the market size of each bond type. Hence, the index has come to mean less "aggregate bond" and more "aggregate investment-grade bond. Investors looking to gain maximum exposure to the fixed income market can purchase an exchange traded fund ETF or a mutual fund that tracks the index.
It is constructed using microdata from the Current Population Survey and is the median percent change in the hourly wage of individuals observed 12 months apart. The measure is based on methodology developed by colleagues at the San Francisco Fed.
