EAGG

📎 Investment Objective

The iShares ESG Aware U.S. Aggregate Bond ETF (EAGG) seeks to track the investment results of an index composed of U.S. investment-grade bonds that have been screened for certain environmental, social and governance (ESG) criteria.

✨ Key Features

• Focuses on U.S. investment-grade bonds that meet certain ESG criteria
• Seeks to provide broad exposure to the U.S. investment-grade bond market with a tilt towards more sustainable issuers
• Employs an indexing approach, seeking to replicate the performance of the underlying benchmark index
• Relatively low expense ratio compared to actively managed ESG bond funds

⚠️ Primary Risks

• Interest rate risk: Bond prices may decline due to rising interest rates
• Credit risk: Issuers may fail to make timely interest or principal payments
• ESG screening risk: The ESG criteria used may not always be effective in identifying sustainable investments
• Tracking error risk: The fund may not perfectly track the performance of its underlying index

👤 Best For

EAGG may be suitable for investors seeking exposure to the U.S. investment-grade bond market with a focus on ESG considerations. It may be particularly appealing to investors who want to incorporate sustainable investing principles into their fixed income allocation, while still maintaining a diversified bond portfolio.