AGG vs. ACWI
AGG (iShares Core U.S. Aggregate Bond ETF) and ACWI (iShares MSCI ACWI ETF) are both exchange-traded funds - AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while ACWI is a Global Equities fund tracking the MSCI All Country World Index. Both are passively managed. Over the past 10 years, AGG returned 1.57%/yr vs 12.85%/yr for ACWI. At a correlation of -0.06, they often move in opposite directions. AGG charges 0.03%/yr vs 0.32%/yr for ACWI.
Performance
AGG vs. ACWI - Performance Comparison
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Returns By Period
In the year-to-date period, AGG achieves a 0.25% return, which is significantly lower than ACWI's 12.13% return. Over the past 10 years, AGG has underperformed ACWI with an annualized return of 1.57%, while ACWI has yielded a comparatively higher 12.85% annualized return.
AGG
- 1D
- -0.21%
- 1M
- 0.24%
- YTD
- 0.25%
- 6M
- 0.09%
- 1Y
- 5.14%
- 3Y*
- 3.95%
- 5Y*
- 0.10%
- 10Y*
- 1.57%
ACWI
- 1D
- -0.83%
- 1M
- 5.28%
- YTD
- 12.13%
- 6M
- 12.96%
- 1Y
- 29.18%
- 3Y*
- 21.15%
- 5Y*
- 11.28%
- 10Y*
- 12.85%
AGG vs. ACWI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 0.25% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
ACWI iShares MSCI ACWI ETF | 12.13% | 22.41% | 17.45% | 22.27% | -18.39% | 18.66% | 16.34% | 26.59% | -9.19% | 24.33% |
Correlation
The correlation between AGG and ACWI is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.10 |
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008 | -0.06 |
The correlation between AGG and ACWI shifts across timeframes, from -0.06 (all time) to 0.37 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
AGG vs. ACWI — Risk / Return Rank
AGG
ACWI
AGG vs. ACWI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and iShares MSCI ACWI ETF (ACWI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| AGG | ACWI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.95 | ||
| Sortino ratioReturn per unit of downside risk | -1.17 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.41 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 1.87 | 3.01 | -1.15 |
| Martin ratioReturn relative to average drawdown | 5.73 | 13.53 | -7.80 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| AGG | ACWI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.34 | 2.29 | -0.95 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.02 | 0.71 | -0.69 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 0.75 | -0.46 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.59 | 0.43 | +0.17 |
Drawdowns
AGG vs. ACWI - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, smaller than the maximum ACWI drawdown of -56.00%. Use the drawdown chart below to compare losses from any high point for AGG and ACWI.
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Drawdown Indicators
| AGG | ACWI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.43% | -56.00% | +37.57% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -9.73% | +6.97% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -16.55% | +10.44% |
Max Drawdown (5Y)Largest decline over 5 years | -17.82% | -26.42% | +8.60% |
Max Drawdown (10Y)Largest decline over 10 years | -18.43% | -33.53% | +15.10% |
Current DrawdownCurrent decline from peak | -2.14% | -0.83% | -1.31% |
Average DrawdownAverage peak-to-trough decline | -2.71% | -8.61% | +5.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 2.16% | -1.26% |
Volatility
AGG vs. ACWI - Volatility Comparison
The current volatility for iShares Core U.S. Aggregate Bond ETF (AGG) is 1.30%, while iShares MSCI ACWI ETF (ACWI) has a volatility of 3.93%. This indicates that AGG experiences smaller price fluctuations and is considered to be less risky than ACWI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGG | ACWI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.30% | 3.93% | -2.63% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 10.29% | -7.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.85% | 12.78% | -8.93% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.09% | 16.05% | -9.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.40% | 17.11% | -11.71% |
AGG vs. ACWI - Expense Ratio Comparison
AGG has a 0.03% expense ratio, which is lower than ACWI's 0.32% expense ratio.
Dividends
AGG vs. ACWI - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.99%, more than ACWI's 1.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ACWI iShares MSCI ACWI ETF | 1.38% | 1.55% | 1.70% | 1.88% | 1.79% | 1.71% | 1.43% | 2.33% | 2.18% | 1.94% | 2.19% | 2.56% |
AGG iShares Core U.S. Aggregate Bond ETF | 3.99% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
Frequently Asked Questions
AGG and ACWI have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ACWI has higher volatility (3.93%) compared to AGG (1.30%). In terms of maximum drawdown, AGG dropped -18.43% vs ACWI's -56.00%.
On 10-year performance, ACWI leads with 12.85% vs 1.57% for AGG. On fees, AGG is cheaper at 0.03% per year. On volatility, AGG has been the lower-risk option at 1.30%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ACWI has performed better with a 12.85% return vs 1.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AGG is cheaper with a 0.03% expense ratio, compared with 0.32% for ACWI.
AGG has the higher dividend yield at 3.99%, compared with 1.38% for ACWI.
AGG is categorized as Total Bond Market, while ACWI is Global Equities. AGG tracks Bloomberg U.S. Aggregate Bond Index, while ACWI tracks MSCI All Country World Index. Their fees differ too: 0.03% for AGG and 0.32% for ACWI.
ACWI currently has the higher Sharpe Ratio (2.29 vs 1.34), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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