iShares Core U.S. Aggregate Bond ETF lost money in the bond selloff.
AGG's long average duration makes its price sensitive to changes in interest rates. The article highlights that sensitivity and contrasts AGG with shorter funds. That contrast suggests investors may prefer shorter-duration ETFs, adding pressure on AGG's demand and price.
Vanguard Short-Term Treasury ETF is shown as a short-duration alternative to AGG. Its 1.9-year duration would limit price losses if yields rise.
iShares 7-10 Year Treasury Bond ETF has a 6.89-year duration and a 4.73% SEC yield. That raises both the chance of bigger gains if yields fall and bigger losses if yields rise, leaving its prospects balanced in this story.
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