Recent claims that the Barclays U.S. Aggregate Index (the “U.S. Agg”) is now somehow greatly different than it was do not make sense to me. As Vanguard has noted before, investment grade bonds remain a good source of diversification.
Jim Rowley, CFA, is the head of active/passive portfolio research in Vanguard Investment Strategy Group, where he leads the team that conducts research and provides thought leadership on issues related to indexing and ETFs, active management, and factors. Before joining Vanguard in 2005, Mr. Rowley worked at Gartmore Global Investments, Lehman Brothers, and Merrill Lynch. He earned a B.S. from Villanova University and an M.B.A. from New York University. He is a CFA® charterholder and a past president of the CFA Society of Philadelphia.