At a glance
AGZD charges 0.23% a year, above the 0.07% average of the 7 funds most like it (the most expensive of 8). It has $99.5M in assets, the 8th largest of that group; it paid 4.56% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.3% with distributions reinvested, the best of those 8 funds; over three years it returned +5.8% a year. At its worst it fell 8.4% in the 2020 crash (S&P 500: 33.7%) and 2.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months and 5 months after the lows. Its ten largest positions make up 9.3% of the fund, out of 1,389 in all.
The short version
WisdomTree Interest Rate Hedged U.S. Aggregate Bond Fund (AGZD) is an index ETF that owns a broad mix of U.S. investment-grade (higher-rated) bonds. It offsets their interest-rate risk with short Treasury futures positions, which gain when bond prices fall. The aim is near-zero rate sensitivity, which can help when rates rise and hurts when they fall. Its 0.23% expense ratio is above the 0.03% charged by unhedged aggregate bond funds such as AGG.
Price history
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AGZD +4.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| AGZD official prospectus, to Dec 31, 2024 | — | +6.78% | — | +3.17% | +2.44% | — |
| Bloomberg Rate Hedged U.S. Aggregate Bond Index, Zero Duration (Reflects no deduction for fees, expenses or taxes) index, same period | — | +6.62% | — | +3.21% | +2.55% | — |
| Index16 index, same period | — | +1.25% | — | -0.33% | +1.35% | — |
| AGZD price data to Oct 27, 2026 | +3.4% | +4.3% | +5.8% | +4.6% | +3.3% | +2.6% |
- Over the year to Oct 27, 2026, AGZD returned +4.3%, 1st of 8 among similar funds.
- Its 5-year annualized return was +4.6% and its 10-year +3.3%.
- In the 2020 COVID crash it fell 8.4% and regained its old high 8.5 months after the low.
- Its worst full calendar year was 2015 (-0.9%); its best was 2023 (+7.2%).
- The deepest fall in its price history was 8.4% (Feb 20, 2020 to Mar 20, 2020), recovered by Dec 4, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.4% | — |
| 2025 | +4.6% | — |
| 2024 | +6.7% | +6.78% |
| 2023 | +7.2% | +7.24% |
| 2022 | +1.2% | +1.04% |
| 2021 | +0.8% | +0.35% |
| 2020 | +0.4% | +0.65% |
| 2019 | +4.7% | +4.59% |
| 2018 | +0.2% | +0.58% |
| 2017 | +2.7% | +2.56% |
| 2016 | +2.2% | +2.09% |
| 2015 | -0.9% | -1.14% |
| 2014 | +0.4% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 7.1% over that stretch · deepest drop along the way 8.4%, back to its old high 8.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 1.3% over that stretch · deepest drop along the way 2.2%, back to its old high 4.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7750 | |
| 2025 | $0.9700 | +7.8% |
| 2024 | $0.9000 | -32.8% |
| 2023 | $1.3400 | -28.9% |
| 2022 | $1.8850 | +371.2% |
| 2021 | $0.4000 | -27.3% |
| 2020 | $0.5500 | -20.3% |
| 2019 | $0.6900 | +9.5% |
| 2018 | $0.6300 | +9.6% |
| 2017 | $0.5750 | +30.7% |
| 2016 | $0.4400 | +8.6% |
| 2015 | $0.4050 | -8.0% |
| 2014 | $0.4400 |
What's inside
As of May 31, 2026, the fund held 1,389 securities; the ten largest made up 9.32% of assets.
| Holding | Weight | |
|---|---|---|
| CITIGROUP INC. RA | 3.82% | |
| FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage-backed securities | 0.80% | |
| GOVERNMENT NATIONAL MORTGAGE ASSOCIATION Mortgage-backed securities | 0.63% | |
| FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage-backed securities | 0.63% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.62% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.59% | |
| FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage-backed securities | 0.57% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.56% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.55% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.55% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.53% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.50% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.49% | |
| FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage-backed securities | 0.49% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.49% |
By country
United States 97.75%Canada 1.01%Japan 0.42%Philippines 0.4%United Kingdom 0.37%By issuer
US Treasury 45.48%Companies 28.67%US government-sponsored enterprises 19.16%US government agencies 5.81%Foreign governments 2.61%The bonds mature in 12.5 years on average (weighted by size), with an average coupon of 3.82%.
Source: N-PORT holdings report as of May 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to May 31, 2026, investors added a net $7.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.40%, +0.53%, +0.64%.
How it works
AGZD tracks the Bloomberg Rate Hedged U.S. Aggregate Bond Index, Zero Duration, built by Bloomberg Index Services Limited. The index has two parts. The long part aims to copy the Bloomberg U.S. Aggregate Bond Index, a broad mix of Treasuries, government-related bonds, corporate bonds and mortgage-backed and asset-backed securities. The fund owns a representative sample instead of every bond. As of May 31, 2026, it held 1,389 securities: about 45% U.S. Treasury, 29% corporate and 19% from government-sponsored enterprises such as Fannie Mae.
The short part holds short positions in Treasury futures. These are sized to cancel out the long part's duration, a measure of how much bond prices move when rates change, for a total duration near zero. The futures are spread across maturities to handle uneven rate moves. As of May 31, 2026, they included 2-year, 5-year, 10-year, Ultra 10-year and Ultra Treasury bond futures. Both parts rebalance monthly.
Much of the mortgage exposure comes through to-be-announced (TBA) contracts. These are agreements to buy mortgage pools that are named only shortly before settlement. The fund rolls these contracts forward instead of taking delivery and keeps the cash in short-term instruments in the meantime. That helps explain why its largest position, at 3.8%, was a Citigroup tri-party repurchase agreement. Portfolio turnover was 112%. The hedge does not protect against credit risk.
What it really costs
- AGZD charges 0.23% a year, versus an average of 0.07% for the similar funds below (8th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $24 in the first year and $293 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| AGZD | $24 | $74 | $130 | $293 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
AGZD offers bond income with interest-rate sensitivity hedged to near zero, so it behaves differently from both regular bond funds and stocks.
AGZD launched in December 2013, so it has no record from the 2008 crisis. In the 2022 bear market, its deepest drop was 2.2%, and it recovered in about 4.5 months. It ended 2022 up 1.04%. The COVID crash hit it harder. It fell 8.4% between February 20 and March 20, 2020, and took about 8.5 months to recover. That shows the hedge does not protect against credit stress. Anyone forced to sell in that stretch would have locked in a loss. Its worst calendar year was 2015, at -1.14%.
The trailing 12-month yield was 4.56% as of October 27, 2026, paid monthly. In the SEC's standard $10,000 example, the 0.23% expense ratio costs about $24 in the first year and $293 over 10 years. When rates fall sharply, the hedge drags on returns. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want income from a broad investment-grade bond mix, paid monthly, with interest-rate sensitivity hedged to near zero.
- Holders of regular aggregate bond funds who want part of their bond money to hold up better when Treasury rates rise significantly.
- Those comfortable with futures-based hedging who value small price swings: one-year volatility was 2.6% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: the 0.23% expense ratio ranks last among eight similar aggregate bond funds, several of which charge 0.03%.
- Investors who want bonds to gain when rates fall, as often happens in recessions. AGZD's short Treasury futures lose value then.
- Anyone wanting a cash-like holding: AGZD fell 8.4% in early 2020 and needed about 8.5 months to recover.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| AGZD this fund | 12.5 yrs | 0.23% | $99.5M | +4.3% | +5.8% |
| SCHZ Schwab U.S. Aggregate Bond ETF | 12.5 yrs | 0.03% | $10.60B | -1.1% | +5.2% |
| BBAG JPMorgan BetaBuilders U.S. Aggregate Bond E… | 12.5 yrs | 0.03% | $1.03B | -0.8% | +5.3% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| SPAB SPDR Portfolio Aggregate Bond ETF | 12.7 yrs | 0.03% | $9.63B | -1.2% | +5.2% |
| EAGG iShares ESG Aware US Aggregate Bond ETF | 12.7 yrs | 0.1% | $5.09B | -1.2% | +5.1% |
| GCOR Goldman Sachs Access U.S. Aggregate Bond ETF | 12.7 yrs | 0.08% | $833.9M | -1.4% | +5.1% |
| NUBD Nuveen ESG U.S. Aggregate Bond ETF | 12.3 yrs | 0.16% | $463.2M | -1.3% | +5.1% |
Questions investors ask
What is AGZD and how does it hedge interest rates?
AGZD is a WisdomTree ETF that tracks the Bloomberg Rate Hedged U.S. Aggregate Bond Index, Zero Duration. It owns a sample of the broad U.S. investment-grade bond market and shorts Treasury futures to bring its overall duration, or interest-rate sensitivity, close to zero. The hedge is rebalanced monthly. It targets rate risk only. It does not protect against credit risk, meaning a drop in corporate or mortgage bond prices caused by worries about borrowers.
AGZD vs AGG: what's the difference?
AGG, the iShares Core U.S. Aggregate Bond ETF, owns a similar mix of bonds but doesn't hedge interest rates. AGZD does, so the two react very differently when rates change. AGG costs 0.03% a year; AGZD costs 0.23%. AGZD returned 4.3% over the year through October 27, 2026. AGG returned -0.3% over the year through October 30, 2026. AGG had about $138 billion in net assets as of August 31, 2026. AGZD had about $99.5 million as of May 31, 2026.
Does AGZD pay monthly dividends?
Yes. AGZD pays distributions monthly. Over the 12 months through October 27, 2026, it paid about $1.025 per share, a trailing yield of 4.56%. That income comes mainly from interest on the bonds it holds, including Treasuries, corporate bonds and mortgage-backed securities. Payments can vary from month to month. The rate hedge doesn't remove the bonds' interest income, but gains or losses on the futures affect total return.
What happens to AGZD when interest rates fall?
AGZD tends to lag regular bond funds when rates fall. Its short Treasury futures lose value as Treasury prices rise, which offsets the gains on the bonds it owns. The prospectus says the index is designed to return less than an unhedged version when Treasury rates fall significantly. It lists this as a principal risk. Investors who hold bonds as a cushion against recessions may find the hedge works against that goal.
How has AGZD performed over the long term?
According to its prospectus, AGZD returned an average of 2.44% a year over the 10 years ended December 31, 2024. Its index returned 2.55% over the same period. The fund's five-year average was 3.17%, and its one-year return was 6.78%. Its strongest quarter was +2.38% in late 2023, and its weakest was -3.33% in early 2020. Based on share price, it returned 3.3% a year over the 10 years through October 27, 2026.