Tracking the Agg? Why the bond index may not work for investors

Many investors use the Bloomberg Barclays U.S. Aggregate Bond Index (the Agg) as the basis for large fixed-income allocations. But the Agg has become very concentrated — it’s heavily weighted toward government exposure. In this video, Ed Kerschner explains why products that track the Agg may lead to a lack of diversification and why it’s important to look beyond the benchmark to create a more efficient portfolio.