2006-10-23 17:58:04 · 3 answers · asked by Mrs MTL 1 in Business & Finance ➔ Investing
An Exchange Traded Fund, kind of like a mutual fund only easier to buy and sell and do other sophisticated trades. It holds a highly diversified bond portfolio, and tries to equal the average yield from the US investment grade index. Bonds basically yield a fixed % every year, and thus are a conservative strategy to achieve returns on investment. This ETF has had a fairly low return recently, as bonds have not been performing well.
The way the ETF works is that they are small components of what is called a "creation unit". A big broker purchases these "creation units" which in the case of AGG is 100,000 shares ($9.7 Million). If you accumulate 100,000 shares, you can present them to the original issuer, IShares, and they will give you the bonds which the ETF represents.
2006-10-23 18:13:51 · answer #1 · answered by MagicalMke 4 · 0⤊ 0⤋
No one knows.
2006-10-24 01:05:06 · answer #2 · answered by oneblondepilgrim 6 · 0⤊ 0⤋
http://www.americanbulls.com/StockPage.asp?CompanyTicker=AGG&MarketTicker=AMEX&Typ=S
2006-10-24 01:08:53 · answer #3 · answered by green star 3 · 0⤊ 0⤋