iShares Core US Aggregate Bond ETF

AGG

Market cap $141B

U.S. equity markets advanced this week as investors parsed a deluge of headlines, including a major Supreme Court tariff ruling, escalating Middle East tensions, soft economic data, and hawkish Fed-speak. The Supreme Court ruled 6-3 to restrict the President's authority to impose broader tariffs under the IEEPA framework, a widely expected move that was quickly countered by the White House. Investors also shrugged off renewed tensions between the U.S. and Iran, which sent oil prices to seven-month highs. The S&P 500 advanced 1.1% - its best weekly gains since early January.

The latest 13F filings from BlackRock, the world's largest asset manager, are offering investors a fresh look at how the firm positioned its portfolio as of Q4 2025.

U.S. equity markets diverged sharply as cooling labor data revived Fed rate-cut expectations, accelerating a value rotation and pressuring growth amid scrutiny and an unwind of the dollar debasement trade. With the January BLS payrolls report delayed, investors instead reacted to softer-than-expected JOLTS, ADP, Challenger, and initial claims data, interrupting a stretch of resilient economic releases and tempering risk sentiment. Meanwhile, the busiest week of corporate earnings season raised questions around where long-term value from booming AI spending ultimately accrues, both within the AI ecosystem and across the broader economy.

I reiterate a buy rating on iShares Core US Aggregate Bond ETF (AGG), citing strong fixed income fundamentals and positive real yield prospects. AGG's 4.4% yield, low volatility, and favorable risk-adjusted returns make it an attractive core holding for balanced portfolios. Investor allocations to AGG remain light post-2022, suggesting potential upside as sentiment shifts back toward traditional fixed income.

Key Themes To Watch This REIT Earnings Season

TMX VettaFi writers Nick Wodeshick and Nick Peters-Golden kicked off 2026 with the first Bull vs Bear discussion on foreign equities. In this version, writers Ben Hernandez and DJ Shaw delve into the world of digital assets — specifically, crypto ETFs.

Ahead of the Fed meeting, U.S. equity markets declined modestly this week as investors navigated a fresh bout of global rate volatility amid headline churn out of Davos and Japan. Markets drew relief from de-escalation in the Greenland saga, as the White House backed away from military and tariff threats after agreeing to a NATO framework enabling expanded U.S. influence. Speculation ramped up around the next Fed Chair, with BlackRock's Rick Rieder suddenly viewed as the betting favorite, a candidate that markets view as a pragmatic and more centrist alternative.

BND and AGG deliver nearly identical costs and yields, but BND holds more higher-rated bonds. Both ETFs posted small price gains in 2025, but it's a positive sign as the bond market continues to rebound from its historic crash in 2022.

Both AGG and IGIB saw price increases of less than 5% in 2025, but it's still a positive sign as the bond market continues to recover overall. Both ETFs have nearly identical expense ratios, while IGIB has a considerably higher dividend yield.

Both VCIT and AGG charge the same low expense ratio, but VCIT offers a higher yield. AGG holds a much broader mix of bonds and has a lower historical drawdown than VCIT.