BlackRock Australia has announced its intention to launch the iShares Core Global Aggregate Bond (AUD Hedged) ETF (ASX: AGGG), a competitively priced global index fixed income product for Australian advisers and investors.
The fund, expected to list on the ASX in early November 2025, carries a management fee of 0.18 per cent.
Benchmarked to the Bloomberg Global Aggregate Bond Index (AUD Hedged), AGGG provides broad exposure to a diversified investment-grade global bond market.
Comprising more than 19,000 securities, the exchange-traded fund (ETF) includes exposure to government, securitised and investment-grade corporate bonds across multiple regions.
The structure enables Australian investors to diversify fixed income exposure across countries and sectors, while AUD hedging helps mitigate currency risk.
Steve Ead, head of global product solutions for Australasia at BlackRock, said fixed income ETFs “continue to play an important role in portfolio construction, particularly in an environment where investors are seeking global diversification and income”.
“AGGG offers a simple, cost-effective way to access global investment-grade bonds, complementing our existing suite of iShares fixed income ETFs in Australia and serves as a tool for advisers and asset allocators to help build diversified multi-asset portfolios.”
Katherine Palmer, head of fixed income and credit product strategy for Australia at BlackRock, said the launch of AGGG will expand the firm’s Australian iShares fixed income line-up which is set to deliver a “core building block for Australian advisers and investors seeking global investment-grade bond exposure hedged to AUD”.
“The proportion of fixed income assets yielding over 4 per cent have increased markedly since 2021, with investors now able to access a more interesting array of yields across different fixed income subcategories – including the investment-grade space.”
iShares ETFs have recently surpassed US$5 trillion in global assets under management. Core equity ETF saw the highest volume of inflows at US$53 billion, followed by fixed income ones, which gained US$41 billion.
Since the start of 2025, ETFs have reported US$345 billion in net inflows.
