Analysis

Key stats

About WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund

SHAG tracks an index designed to boost yield in the short-term bond space. The fund draws from the Bloomberg U.S. Aggregate Index (Agg), and shifts exposures to sector, interest rate risk, and credit risk to increase yield. SHAG`s index deconstructs the Agg into 13 buckets based on sector, credit quality, and maturity. Securities are limited to 1-5 years to maturity to minimize risk. After separating them into market-value-weighted buckets, the index applies an optimization algorithm to determine the allocation to each bucket and applies constraints to ensure the index retains the risk profile of the 1-5 year bond universe. The constraints include technical and fundamental factors, such as tracking err, duration, sector weights, and turnover limits. SHAG puts a twist on the short-term investment-grade space, and is geared towards investors seeking greater yield than a typical short-term bond fund with less interest-rate risk than an all-maturity bond fund.