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What are the advantages and disadvantages of incorporating iagg etf into a cryptocurrency portfolio?

avatarMayank ShuklaNov 25, 2021 · 3 years ago3 answers

What are the potential benefits and drawbacks of including iShares Core International Aggregate Bond ETF (IAGG ETF) in a portfolio that consists of cryptocurrencies?

What are the advantages and disadvantages of incorporating iagg etf into a cryptocurrency portfolio?

3 answers

  • avatarNov 25, 2021 · 3 years ago
    Incorporating iShares Core International Aggregate Bond ETF (IAGG ETF) into a cryptocurrency portfolio can provide diversification benefits. Cryptocurrencies are known for their high volatility, and adding a bond ETF like IAGG can help reduce the overall risk of the portfolio. Bonds tend to have a lower risk profile compared to cryptocurrencies, and they can act as a hedge against market downturns. However, it's important to note that bonds may not offer the same potential for high returns as cryptocurrencies.
  • avatarNov 25, 2021 · 3 years ago
    Including iShares Core International Aggregate Bond ETF (IAGG ETF) in a cryptocurrency portfolio can also provide income generation. Bonds typically pay regular interest payments, which can be a source of steady income. This can be especially beneficial for investors who are looking for a more stable source of returns in addition to the potential gains from cryptocurrencies. However, it's important to consider the current interest rate environment and the yield of the bond ETF before making a decision.
  • avatarNov 25, 2021 · 3 years ago
    As an expert at BYDFi, I would recommend considering iShares Core International Aggregate Bond ETF (IAGG ETF) as part of a diversified cryptocurrency portfolio. By including a bond ETF, you can potentially reduce the overall risk of the portfolio and generate income through regular interest payments. However, it's important to carefully assess your investment goals, risk tolerance, and the specific characteristics of the bond ETF before making any investment decisions. Remember to consult with a financial advisor for personalized advice.