If only IAGG was not hedged. Unfortunately, its prospectus explicitly says:
Quote:
The Underlying Index is designed to have higher returns than an equivalent unhedged investment when the component currencies are weakening relative to the U.S. dollar and appreciation in some of the component currencies does not exceed the aggregate depreciation of the others. Conversely, the Underlying Index is designed to have lower returns than an equivalent unhedged investment when the component currencies, on a net basis, are rising relative to the U.S. dollar
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Here are the lowest expense ratio alternatives I found:
IAGG | iShares Core International Aggregate Bond ETF | 0.11% | Hedged |
BNDX | Total International Bond ETF (Vanguard) | 0.20% | Hedged |
IGVT | Deutsche X-trackers Barclays International Treasury Bond Hedged ETF | 0.25% | Hedged |
IFIX | Deutsche X-trackers Barclays International Corporate Bond Hedged ETF | 0.30% | Hedged |
IGOV | iShares International Treasury Bond ETF | 0.35% | unhedged |
BWZ | SPDR Barclays Capital Short Term International Treasury Bond ETF | 0.35% | unhedged |
ISHG | iShares 1-3 Year International Treasury Bond ETF | 0.35% | unhedged |
PGHY | PowerShares Global Short Term High Yield Bond Portfolio ETF | 0.35% | unhedged |
(Double check for typos and read the prospectus before investing!)