WisdomTree Yield Enhanced US Aggregate Bond Fund

AGGY

Market cap $815M

Fixed income investors, particularly those allocated to aggregate bond funds, are likely frustrated the Federal Reserve has yet to oblige them with a 2025 interest rate cut. Following a disappointing July jobs report and substantial downward revisions of prior months' data, the central bank may have no choice but to lower borrowing costs next month.

By Vanya Sharma, Senior Associate, Capital Markets Key Takeaways As equity markets remain volatile, WisdomTree's fixed income ETFs—like AGGY and SHAG—offer investors a way to anchor portfolios with higher-yielding, investment-grade exposure while managing interest rate risk.

NEW YORK--(BUSINESS WIRE)--WisdomTree today celebrates the 10th anniversary of the launch of the Yield Enhanced US Aggregate Bond Fund (AGGY).

Authors: Jeremy Schwartz, CFA, Global Chief Investment Officer Kevin Flanagan, Head of Fixed Income Strategy Jeff Weniger, CFA, Head of Equity Strategy Samuel Rines, Macro Strategist, Model Portfolios Key Takeaways Fixed Income Recalibration: With Treasury yields normalizing at 4%–5%, a barbell strategy combining floating rate and yield-enhanced funds can help investors balance rate volatility and credit exposure.

The Federal Reserve's September interest rate cut and expectations of more to follow are renewing interest in bonds. But some advisors and investors may be concerned about the impact lower rates have on the income in fixed income.

By Kevin Flanagan, Head of Fixed Income Strategy Key Takeaways Investors can use a barbell strategy aiming to balance short-term income opportunities and lock in yields with potential returns if long-term rate declines in an uncertain bond market. Shifting to a 60/40 blend of WisdomTree's Floating Rate Treasury Fund (USFR) and Yield Enhanced U.S.

While interest rate cut expectations have seemingly been all over the map this year, there's emerging consensus that clarity will soon avail itself if/when the Federal Reserve lowers interest rates in September. Thus, there's also emerging sentiment that now is the appropriate time for investors to consider revisiting bonds or increasing established fixed income exposure.

Data is indicating inflation and the U.S. economy are cooling. So speculation is intensifying that September will bring with it a much awaited interest rate cut by the Federal Reserve.

By Behnood Noei, CFA Director, Fixed Income Key Takeaways The WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY) outperformed the Bloomberg U.S. Aggregate Bond Index (Agg). AGGY has a higher duration than the Agg, which can benefit the strategy in environments where rates don't go materially higher from the current levels.

Higher-for-longer appears to be the path the Federal Reserve will pursue over the near term. So advisors and investors may want to consider some tried-and-true methods regarding accessing the bond market.