The iShares Core International Aggregate Bond ETF (IAGG) is an exchange-traded fund designed to track the performance of a broad portfolio of investment-grade fixed income securities issued outside the United States. The ETF is managed by BlackRock through the iShares platform and trades under the ticker IAGG on the Nasdaq.

Classified as a fixed income ETF, the fund invests in government bonds, corporate bonds, and securitized debt issued by governments, corporations, and other entities in developed and emerging markets outside the United States. Its strategy is designed to provide broad international exposure to the global bond market.

The ETF follows a passive management approach and seeks to replicate the performance of the Bloomberg Global Aggregate ex USD Float Adjusted RIC Capped Index (USD Hedged). The index includes bonds denominated in multiple currencies, while the fund employs a currency hedging strategy to reduce exposure to fluctuations between those currencies and the U.S. dollar.

Diversification and sector exposure

IAGG provides exposure primarily associated with:

• International government bonds.

• Investment-grade corporate bonds.

• Securitized debt.

• Developed markets.

• Emerging markets.

• Global fixed income.

• Geographic diversification.

• U.S. dollar currency hedging.

The portfolio includes thousands of securities issued by governments, corporations, and financial institutions across numerous countries, providing broad diversification by issuer, sector, maturity, and region.

The ETF's performance generally reflects the investment-grade international bond market, while its currency hedging strategy seeks to reduce the impact of foreign exchange movements relative to the U.S. dollar.

Structure and costs

IAGG shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Interest income generated by the portfolio's bond holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The iShares Core International Aggregate Bond ETF was launched in 2017 to provide investors with broad exposure to investment-grade international fixed income markets outside the United States.

Since inception, the fund has tracked a global bond index composed of securities issued across numerous countries, offering diversified exposure to international fixed income markets while employing a U.S. dollar currency hedging strategy.

Over time, the ETF has reflected changing global monetary policy cycles, shifts in international interest rates, and evolving economic conditions, while maintaining its objective of providing broad exposure to the global investment-grade bond market.

Additional Information

iShares Core International Aggregate Bond ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $10.92 billion.

Over the past 12 months, iShares Core International Aggregate Bond ETF recorded a return of 1.96%, with its price trading between $49.68 and $51.80 during the same period.

The ETF is traded under the ticker IAGG.