WisdomTree Yield Enhanced U.S. Aggregate Bond Fund

Frequently Asked Questions About AGGY

What does AGGY invest in?

Typically, this fund commits a minimum of 80% of its overall capital to either the underlying index's constituents or to financial instruments exhibiting highly similar economic attributes. The benchmark index itself is crafted to comprehensively cover the U.S. market for investment-grade fixed income securities. A core aim of this index's design is to enhance yield, all while strictly adhering to predefined risk limits and guidelines. Importantly, the fund operates on a non-diversified basis.

What is the expense ratio of AGGY?

WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY) charges an expense ratio of 0.12%. This is the annual fee deducted from fund assets to cover management and operations.

What is AGGY's distribution yield?

AGGY's trailing-twelve-month yield is 4.56%, calculated from the sum of distributions over the past year divided by the current price.

How does AGGY's covered-call strategy work?

AGGY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of AGGY?

Effective duration measures AGGY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. AGGY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of AGGY?

AGGY's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.