F Fund

Fixed Income Index Investment Fund

Equivalent Ticker: AGG

Average Annual Returns

(as of July 2025)

YTD
3.89%
1 Year
2.24%
3 Year
1.88%
5 Year
4.35%
10 Year
2.31%

Risk Profile

Low
Low-Med
Medium
Med-High
High

The F Fund carries low to medium risk. It is subject to interest rate risk (when rates go up, bond prices go down) and credit risk. Its goal is to provide returns that exceed inflation over the long term with less volatility than stock funds.

📊 At a Glance: F Fund Profile

What It Is

A bond index fund that provides broad exposure to the major sectors of the U.S. bond market. This includes U.S. government, mortgage-backed, and investment-grade corporate bonds.

Investment Objective

To match the performance of the Bloomberg U.S. Aggregate Bond Index, a broad index representing the U.S. bond market.

Best For

Investors seeking capital preservation, income generation, and a way to diversify the stock portion of their portfolio. It is suitable for those with a lower risk tolerance or who are nearing retirement.

📋 Holdings & Fund Details

Holdings Overview (as of 12/31/2024)

Unlike stock funds, the F Fund does not have a small number of top holdings. Instead, it tracks a broadly diversified index of the U.S. bond market. On December 31, 2024, the index included 12,096 bonds and notes.

Key Fund Details

Assets: $54.2 billion
Expense Ratio: 0.050% ($0.500 per $1,000)
Benchmark: Bloomberg U.S. Aggregate Bond Index
Asset Managers: BlackRock, State Street
Inception Date: 1/29/1988

Key Features & Benefits

🏛️ Broad Bond Market Exposure

Gain exposure to the entire U.S. investment-grade bond market, including government, corporate, and securitized bonds, in a single fund.

💰 Income Generation

Designed to produce income through interest payments from its underlying bond holdings, providing a steady stream of returns.

🛡️ Diversification from Stocks

Bonds often move in the opposite direction of stocks, making the F Fund a crucial tool for balancing a portfolio and reducing overall volatility.

💰 Ultra-Low Costs

With an extremely low expense ratio, the F Fund allows you to keep more of your investment returns, which is especially important for lower-yielding assets like bonds.