At a glance
TAGG charges 0.08% a year, above the 0.05% average of the 7 funds most like it (the 7th cheapest of 8). It has $2.32B in assets, the 8th largest of that group; it paid 4.99% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.2% with distributions reinvested, 7th of those 8 funds; over three years it returned +5.4% a year. At its worst it fell 14.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 35 months after the low. Its ten largest positions make up 16.0% of the fund, out of 1,813 in all.
The short version
T. Rowe Price QM U.S. Bond ETF (TAGG) is an actively managed fund of investment-grade U.S. bonds. It uses quantitative models and bond research to try to beat the Bloomberg U.S. Aggregate Bond Index after fees. It charges 0.08% a year, more than the 0.03% charged by iShares' AGG and Vanguard's BND, and it trades heavily. Its trailing 12-month yield was 4.99% as of October 27, 2026, paid monthly.
Price history
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TAGG -1.2% 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 | |
|---|---|---|---|---|---|---|
| TAGG official prospectus, to Dec 31, 2024 | — | +1.61% | — | — | — | -2.26% |
| TAGG price data to Oct 27, 2026 | -0.9% | -1.2% | +5.4% | 0.0% | — | 0.0% |
- Over the year to Oct 27, 2026, TAGG returned -1.2%, 7th of 8 among similar funds.
- Its 5-year annualized return was 0.0%.
- Its worst full calendar year was 2022 (-12.6%); its best was 2025 (+7.4%).
- The deepest fall in its price history was 17.2% (Nov 9, 2021 to Oct 20, 2022), recovered by Oct 16, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.9% | — |
| 2025 | +7.4% | — |
| 2024 | +1.7% | +1.61% |
| 2023 | +5.8% | +5.66% |
| 2022 | -12.6% | -13.42% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.8% over that stretch · deepest drop along the way 14%, back to its old high 34.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5600 | |
| 2025 | $1.8800 | +4.4% |
| 2024 | $1.8000 | +19.2% |
| 2023 | $1.5100 | -2.6% |
| 2022 | $1.5500 |
What's inside
As of Jul 31, 2026, the fund held 1,813 securities; the ten largest made up 16% of assets, and 6.89% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| US TREASURY N/B Bonds and notes | 2.12% | |
| US TREASURY N/B Bonds and notes | 1.92% | |
| US TREASURY N/B Bonds and notes | 1.76% | |
| US TREASURY N/B Bonds and notes | 1.70% | |
| US TREASURY N/B Bonds and notes | 1.65% | |
| US TREASURY N/B Bonds and notes | 1.60% | |
| US TREASURY N/B Bonds and notes | 1.57% | |
| US TREASURY N/B Bonds and notes | 1.35% | |
| US TREASURY N/B Bonds and notes | 1.26% | |
| US TREASURY N/B Bonds and notes | 1.07% | |
| US TREASURY N/B Bonds and notes | 1.07% | |
| US TREASURY N/B Bonds and notes | 1.03% | |
| US TREASURY N/B Bonds and notes | 0.94% | |
| US TREASURY N/B Bonds and notes | 0.91% | |
| US TREASURY N/B Bonds and notes | 0.77% |
By country
United States 90.22%Cayman Islands 1.87%Canada 1.5%United Kingdom 1.13%Jersey 0.76%By issuer
Companies 40.87%US Treasury 30.28%US government-sponsored enterprises 20.97%US government agencies 4.59%Foreign governments 1.21%The bonds mature in 13.1 years on average (weighted by size), with an average coupon of 4.4%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $474.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.31%, +0.28%, -1.29%.
How it works
The fund aims for a total return above the Bloomberg U.S. Aggregate Bond Index. That index is a broad measure of investment-grade U.S. bonds, meaning bonds rated as having lower default risk, with intermediate to long maturities. The fund keeps at least 80% of its net assets in U.S. bonds. Like the index, it holds Treasuries, government agency debt, mortgage- and asset-backed securities, corporate bonds, municipal bonds and dollar bonds from foreign issuers. As of July 31, 2026, it held 1,813 issues. The 10 largest were all U.S. Treasury notes and bonds, and together they made up 16% of assets.
T. Rowe Price does not copy the index. Its quantitative models try to match the index's overall risk traits more efficiently, and its analysts pick individual bonds. This can leave the fund heavier or lighter than the index in some sectors. It can also give the fund a different duration, a measure of how much a bond's price falls when interest rates rise. Trading is heavy: the prospectus filed December 22, 2025 lists portfolio turnover of 190.9%.
The fund also uses derivatives. It trades U.S. Treasury futures to adjust its sensitivity to interest rates. It buys mortgage bonds in the "to-be-announced" (TBA) market, where the exact securities are named later, and it may push those purchases to a later date through "dollar rolls." It uses credit default swap indexes to manage credit risk. These trades add counterparty risk, the chance that the other side of a trade fails to deliver.
What it really costs
- TAGG charges 0.08% a year, versus an average of 0.05% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TAGG | $8 | $26 | $45 | $103 |
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
It holds a broad mix of investment-grade U.S. Treasury, mortgage and corporate bonds that mirrors the makeup of the Bloomberg U.S. Aggregate Bond Index.
TAGG launched in September 2021, so it has no record from the 2008 or 2020 crashes. Its test came in 2022, when rising rates pushed it down 13.42% for the year. From its November 9, 2021 peak to October 20, 2022, it fell 17.2%. It took about 36 months, until October 16, 2025, to recover. Anyone who sold shares for spending money during that stretch would have locked in losses. That is one reason some retirees hold a cash reserve alongside bond funds. Income softens the blow: the trailing yield was 4.99% as of October 27, 2026, paid monthly. In the SEC's standard example, costs come to about $103 over 10 years on $10,000, but the fund charges more than AGG and BND. Past results don't predict the future, 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 a broad investment-grade bond core whose manager uses models and research to try to beat the Bloomberg U.S. Aggregate Bond Index.
- Retirees who value monthly income; the trailing 12-month yield was 4.99% as of October 27, 2026.
- Those willing to pay 0.08% for active management; its 5.4% three-year annualized return edged out AGG's 5.2% through late October 2026.
Look elsewhere if
- Cost-focused investors: AGG and BND charge 0.03%, and TAGG's one-year return of -1.2% trailed AGG's -0.7% through late October 2026.
- Investors wanting less rate sensitivity: average maturity was 13.1 years, and the fund fell 17.2% between November 2021 and October 2022.
- Taxable-account holders wary of capital gains payouts: 190.9% turnover can raise trading costs and taxable distributions.
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 |
|---|---|---|---|---|---|
| TAGG this fund | 13.1 yrs | 0.08% | $2.32B | -1.2% | +5.4% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| BND Vanguard Total Bond Market ETF | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
| BIV Vanguard Intermediate-Term Bond ETF | 7.5 yrs | 0.03% | $52.45B | -0.7% | +5.1% |
| IEF iShares 7-10 Year Treasury Bond ETF | 8.4 yrs | 0.15% | $41.82B | -1.7% | +4.0% |
| BNDX Vanguard Total International Bond ETF | 8.7 yrs | 0.07% | $122.53B | -0.6% | +4.1% |
| BSV Vanguard Short-Term Bond ETF | 2.9 yrs | 0.03% | $69.75B | +1.7% | +4.5% |
| VGIT Vanguard Intermediate-Term Treasury ETF | 5.5 yrs | 0.03% | $48.41B | -0.2% | +4.5% |
Questions investors ask
Is TAGG an index fund?
No. TAGG is actively managed. It tries to beat the Bloomberg U.S. Aggregate Bond Index after fees rather than copy it. T. Rowe Price uses quantitative models to match the index's overall risk traits and uses research to pick individual bonds. That can leave the fund heavier or lighter than the index in some sectors, or with different interest-rate sensitivity. The fund charges 0.08% a year, and the prospectus warns it may underperform its index.
What's the difference between TAGG and AGG?
The main differences are cost, size and approach. AGG, the iShares Core U.S. Aggregate Bond ETF, charges 0.03% a year and had about $138 billion in net assets as of August 31, 2026. TAGG charges 0.08%, had about $2.3 billion as of July 31, 2026, and tries to beat its index. Through late October 2026, TAGG's three-year annualized return was 5.4% versus AGG's 5.2%. Over one year, TAGG returned -1.2% and AGG returned -0.7%.
Does TAGG pay monthly dividends?
Yes, TAGG pays distributions monthly. Over the 12 months through October 27, 2026, it paid $2.05 per share, a trailing yield of 4.99%. These payouts come mostly from interest on the fund's bonds. Interest income is generally taxed as ordinary income in a taxable account. The amount can change from month to month as the fund's holdings and interest rates change.
How much did TAGG lose in 2022?
TAGG lost 13.42% in 2022, according to its prospectus. That was its worst calendar year. Interest rates rose sharply that year, and bond prices fall when rates rise. Its weakest quarter was the first quarter of 2022, at -5.87%. Measured from its November 9, 2021 peak, the fund fell 17.2% by October 20, 2022. It did not recover until October 16, 2025, about 36 months later.
What bonds does TAGG hold?
As of July 31, 2026, TAGG held 1,813 issues. By issuer, 40.87% was in company bonds, 30.28% in U.S. Treasuries, 20.97% in government-sponsored enterprises and 4.59% in government agencies. Mortgage-backed securities made up 29.97% of assets. About 90% was in U.S. issuers. The largest position, a Treasury note due December 2028, was 2.12% of assets. The average maturity was 13.1 years, and the average coupon was 4.4%.