What is the Bloomberg aggregate bond index?

The Bloomberg Aggregate Bond Index or "the Agg" is a broad-based fixed-income index used by bond traders and the managers of mutual funds and exchange-traded funds (ETFs) as a benchmark to measure their relative performance. The Agg is to the bond market what the Wilshire 5000 Total Stock Index is to the equity market.

What is a bond index?

A bond index or bond market index is a method of measuring the investment performance and characteristics of the bond market. There are numerous indices of differing construction that are designed to measure the aggregate bond market and its various sectors (government, municipal, corporate, etc.)

What is the iShares Core US bond index (agg)?

The index is composed of investment-grade government and corporate bonds. The iShares Core U.S. Aggregate Bond ETF (AGG) is one of the exchange-traded funds (ETFs) that track the index. The Bloomberg Aggregate Bond Index is widely considered to be one of the best total bond market indices.

Which mutual fund tracks the Bloomberg US bond index?

The broad-based bond benchmark index was formerly known as the Barclays Capital Aggregate Bond Index, or BarCap Aggregate, and before that it was known as the Lehman Brothers Aggregate Bond Index. The largest mutual fund that tracks the Bloomberg US Aggregate Bond Index is Vanguard Total Bond Market Index Fund (VBMFX).