Enhanced Aggregate Bond Yield Through AGGY

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About: WisdomTree Yield Enhanced U.S. Aggregate Bond ETF (AGGY), Includes: AGG, HYG, LQD, TLT
by: Josh Ortner
This article is exclusive for subscribers.
Josh Ortner
Owner of Ortner Capital, pension fund manager, registered investment advisor
Summary

AGGY enhances bond yields by 45 basis points compared to the AGG with a similar volatility profile.

For investors needing to hit minimum income targets, this modification of the AGG could help them achieve their objectives.

Incorporating AGGY's 3.1% distribution yield into a broad-based fixed income portfolio can be beneficial not only as a replacement, but also as a complement to other bond funds.

As baby boomers continue to retire and seek shelter within fixed income, new bond products are hard to find that can focus on safety of principal while earning higher effective yield. Passive exchange traded funds