Investment firm Permanent Capital Management LP has expanded its portfolio by acquiring 136,297 shares of the iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) during the third quarter of 2023. This significant purchase is valued at approximately $13,664,000, marking the ETF as the firm’s ninth largest holding and constituting around 2.6% of its total assets.
The acquisition, detailed in the firm’s recent Form 13F filing with the U.S. Securities and Exchange Commission, highlights a growing interest among institutional investors in bond ETFs, particularly in a fluctuating interest rate environment. Other hedge funds have also adjusted their positions in the iShares ETF, reflecting a robust demand for fixed-income assets.
Institutional Investment Trends
In addition to Permanent Capital Management’s recent investment, Jones Financial Companies Lllp increased its stake in the iShares Core U.S. Aggregate Bond ETF by 7.5% in the first quarter. The firm now holds 138,625,924 shares, valued at approximately $13.7 billion, following the acquisition of an additional 9,678,339 shares.
Similarly, Envestnet Asset Management Inc. raised its holdings by 11.8% in the second quarter, bringing its total to 54,218,326 shares worth around $5.4 billion. US Bancorp DE also significantly increased its investment by 29.1%, now owning 43,988,044 shares valued at approximately $4.4 billion after acquiring an additional 9,922,958 shares during the same period.
Other notable changes include Bank of America Corp DE, which lifted its holdings by 4.6%, and Betterment LLC that boosted its stake by 5.4%. Collectively, these investments indicate that approximately 83.63% of the iShares Core U.S. Aggregate Bond ETF is now held by hedge funds and institutional investors, underscoring a solid institutional backing for this asset.
Current Market Performance
As of the latest trading session, shares of the iShares Core U.S. Aggregate Bond ETF opened at $100.04. The ETF has experienced a year low of $95.74 and a year high of $101.35. Its fifty-day simple moving average stands at $100.35, while the 200-day simple moving average is at $99.65. The ETF boasts a market capitalization of $134.62 billion, a price-to-earnings ratio of 124.57, and a beta of 0.25, indicating lower volatility compared to the broader market.
The iShares Core U.S. Aggregate Bond ETF is designed to provide investors with exposure to a broad range of U.S. investment-grade bonds. These index funds are traded like common stocks on major exchanges, offering a cost-effective and tax-efficient way to invest in fixed-income securities.
Investors interested in the iShares Core U.S. Aggregate Bond ETF can purchase shares through any brokerage firm, financial advisor, or online broker, making it accessible for various types of accounts. As the bond market adapts to economic changes, the movements of institutional investors will likely continue to shape the landscape of fixed-income investing.
