The iShares Core Global Aggregate Bond UCITS ETF USD Hedged (Acc) (AGGU) is an Ireland-domiciled fixed-income ETF managed by BlackRock and traded on the London Stock Exchange.

The fund seeks to track the performance of the Bloomberg Global Aggregate Bond Index, providing diversified exposure to investment-grade bonds across global markets while hedging currency exposure back to the U.S. dollar.

The ETF follows a passive investment strategy and uses physical replication through a sampling methodology to track its benchmark. It operates under the UCITS framework, follows an accumulating income policy, and hedges currency exposure to the U.S. dollar.

The Bloomberg Global Aggregate Bond Index covers investment-grade bonds across different markets and currencies, including sovereign, government-related, corporate, and securitized debt.

Composition / Exposure Profile

AGGU primarily provides exposure to:

• Sovereign government bonds.

• Government-related and agency securities.

• Investment-grade corporate bonds.

• Securitized fixed-income securities.

• Debt issued by financial institutions.

The portfolio is broadly diversified geographically, with exposure to issuers across the United States, Japan, China, France, the United Kingdom, Italy, and other developed and emerging markets. Major sovereign issuers include the U.S. Treasury and the governments of Japan and China.

Although the underlying securities are issued in different currencies, the AGGU share class hedges currency exposure back to the U.S. dollar. The hedge is designed to reduce the impact of foreign exchange movements on share class returns, although it does not completely eliminate currency risk.

Structure and Costs

AGGU trades in U.S. dollars on the London Stock Exchange. Both the fund's base currency and the share class currency are the U.S. dollar.

The ETF has a total expense ratio (TER) of 0.10% per year and uses a physical structure with a sampling methodology. It is domiciled in Ireland, operates under the UCITS framework, is part of iShares III plc, and is managed by BlackRock Asset Management Ireland Limited.

AGGU is an accumulating share class, meaning interest and other income generated by its holdings are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The iShares Core Global Aggregate Bond UCITS ETF USD Hedged (Acc) (AGGU) was launched in 2017 by BlackRock to provide diversified exposure to the global investment-grade bond market while hedging currency exposure back to the U.S. dollar.

Since its launch, the fund has maintained a passive strategy linked to the Bloomberg Global Aggregate Bond Index, covering different segments and markets across the global fixed-income universe.

Throughout its history, the fund's performance has reflected cycles in global bond markets, including changes in interest rates, credit conditions, and monetary policy, while its currency hedge seeks to reduce the impact of movements in underlying currencies relative to the U.S. dollar.

Additional Information

iShares Core Global Aggregate Bond UCITS ETF USD Hedged (Acc) (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $3.83 billion.

Over the past 12 months, iShares Core Global Aggregate Bond UCITS ETF USD Hedged (Acc) recorded a return of -0.87%, with its price trading between $5.70 and $5.89 during the same period.

The ETF is traded under the ticker AGGU.