I'm looking for a bond fund for a specific sleeve of my portfolio that I need to be pretty liquid, intermediate duration and not subject to a lot of credit or currency risk. I have credit and currency risk in other parts of the portfolio with managers that I like, so I'm not really interested in assuming more with this sleeve.
Right now, I'm thinking about Fidelity GNMA fund FGMNX or iShares AGG, because I can get them at fidelity and don't have to hold them for 6 months without paying a $75 fee. I don't know anything about the risks of GNMA funds, other than they have prepayment risk, and I was wondering what other people thought about them. I'll probably go with AGG but I was just curious.