The Importance of Bond Indexing

The Bloomberg Barclays aggregate bond index or the AG is often referred to as. Whenever you see a total bond market index fund, it's typically tracking the AG. The biggest problem I have with bond indexes like the AG is that bond indexes are weighted towards issuers with the most debt. As of 2022, treasuries made up 40% of the AG and when you factor in debt issued by government agencies and mortgage backed securities, the total government exposure is now over 73%.