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What's 'Under The Hood' Of Your Core Bond Position?
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What's 'Under The Hood' Of Your Core Bond Position?

Seeking Alpha·WisdomTree·19 days ago
#TiP0OpME
#source#chevron#alpha#bond#core#treasury
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Home Investing Strategy Fixed Income Analysis Summary With Treasury securities now comprising roughly 47% of the Bloomberg U.S. Aggregate Bond Index, up from 22% in 2002, core bond investors may be taking on too much concentration in U.S. government debt than they realize. Persistent fiscal deficits nearing $2 trillion and potential increases in Treasury coupon issuance in FY2027 could push the Agg’s Treasury weighting above 50%, further reshaping the risk and yield profile of traditional core fixed income allocations. Investors seeking a more balanced core bond exposure may consider the WisdomTree Yield Enhanced U.S. Aggregate Bond Fund, which uses a rules-based approach to reduce Treasury concentration while maintaining familiar investment-grade risk characteristics and enhancing yield potential. Douglas Rissing/iStock via Getty Images By Kevin Flanagan Typically, an investor’s traditional bond portfolio begins with a cornerstone, or core holding, of some sort.…

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