WisdomTree Barclays U.S. Aggregate Bond Enhanced Yield launches

By Toni Weeks

San Luis Obispo, Calif., June 24 – WisdomTree said it launched the WisdomTree Barclays U.S. Aggregate Bond Enhanced Yield Fund, according to a press release. The new fund trades on the New York Stock Exchange Arca under the symbol “AGGY.”

As previously reported, the fund seeks to track the price and yield performance, before fees and expenses, of the Barclays U.S. Aggregate Enhanced Yield index. Under normal circumstances, it invests at least 80% of its total assets in securities of the index.

The index is designed to provide broad exposure to the U.S. investment-grade, fixed-income securities market while seeking to enhance yield within desired risk parameters and constraints.

According to the press release, the index is the leading benchmark for fixed-income investors. However, it currently provides some of the lowest levels of income potential and highest levels of interest rate risk in its history.

The new ETF allows investors the potential to enhance yield and remain within the constituents of the index, avoiding exposure to non-investment-grade debt. It targets a yield-enhanced approach, which retains the index’s key characteristics and broad volatility profile of a balanced fixed-income portfolio.

“As investors increasingly look for ways to boost the income potential of their portfolios, AGGY provides the opportunity to do so within core fixed income while continuing to benefit from the diversifications of a multi-sector portfolio,” Rick Harper, head of Fixed Income & Currency at WisdomTree, said in the release.

The portfolio managers are David C. Kwan and Zandra Zelaya.

There are no shareholder fees. Including management fees of 0.2%, and taking into account the effects of a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 0.12%.

New York-based WisdomTree Asset Management serves as the investment adviser. Mellon Capital Management Corp. is the subadviser.

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