Maybe if you think rates are likely to go down then speculating on a LT bond fund I could see.

I'm going more with treasuries, maybe TIPs (still not sure on them), CDs, etc.

There is a misconception in your post. AGRH is pretty much the shortest duration fund you will find. BlackRock has made fixed for floating swaps on the underlying ETF that is AGG, which is the US aggregate bonds.

As far as safety goes, I agree US treasuries are safer and you can buy the equivalent treasury floating rate ETF TFLO, also with extremely short duration. And of course, a lower interest rate.

AGRH does trade by appointment as they say. Low daily average volume ~ 1500 shares per day.

Nonetheless, for people who are comfortable buying the US aggregate bond market, but do not want to bet on the direction of interest rates, AGRH is a good solution. If rates go up, you get more income, if rates go down, you get less. But your principal is much better protected than a long duration bond ETF like AGG.