BlackRock has added to its fixed-income ETF range, which will enable Australian advisers and investors to diversify their fixed income exposure across countries and sectors, with the added benefit of AUD hedging to help mitigate currency fluctuations.
The iShares Core Global Aggregate Bond (AUD Hedged) ETF (AGGG) will invest in investment-grade global bonds, including government, securitised, and investment-grade corporate bonds across multiple regions.
Anticipated to list on the ASX in early November, AGGG will be benchmarked to the Bloomberg Global Aggregate Bond Index (AUD Hedged) index, and with a management fee of 0.18 per cent per annum.
Benchmarked to the Bloomberg Global Aggregate Bond Index (AUD Hedged) index, it is expected to list on the ASX in early November 2025, with a management fee of 0.18 per cent per annum.
BlackRock Australia head of global product solutions Steve Ead said, “Fixed income ETFs continue to play an important role in portfolio construction, particularly in an environment where investors are seeking global diversification and income.
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“AGGG offers a simple, cost-effective way to access global investment grade bonds, complementing our existing suite of iShares fixed income ETFs in Australia and serves as a tool for advisers and asset allocators to help build diversified multi-asset portfolios.”
Katherine Palmer, head of fixed income and credit product strategy at BlackRock Australia, said, “The proportion of fixed income assets yielding over 4 per cent have increased markedly since 2021, with investors now able to access a more interesting array of yields across different fixed income sub-categories – including the investment grade space.
“The launch of AGGG expands BlackRock’s Australian iShares fixed income lineup, delivering a core building block for Australian advisers and investors seeking global investment-grade bond exposure hedged to AUD.”
