AGG vs. BND

Last updated Apr 1, 2026

Compare and contrast key facts about iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND).

AGG and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. AGG is a passively managed fund by iShares that tracks the performance of the Bloomberg U.S. Aggregate Bond Index. It was launched on Sep 22, 2003. BND is a passively managed fund by Vanguard that tracks the performance of the Bloomberg U.S. Aggregate Float Adjusted Index. It was launched on Apr 3, 2007. Both AGG and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

AGG vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

AGG vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AGG iShares Core U.S. Aggregate Bond ETF	0.02%	7.19%	1.31%	5.65%	-13.02%	-1.77%	7.48%	8.46%	0.09%	3.55%
BND Vanguard Total Bond Market ETF	0.05%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%

Returns By Period

In the year-to-date period, AGG achieves a 0.02% return, which is significantly lower than BND's 0.05% return. Both investments have delivered pretty close results over the past 10 years, with AGG having a 1.66% annualized return and BND not far ahead at 1.67%.

AGG

• 1D: 0.23%
• 1M: -1.79%
• YTD: 0.02%
• 6M: 0.97%
• 1Y: 4.36%
• 3Y*: 3.59%
• 5Y*: 0.23%
• 10Y*: 1.66%

BND

• 1D: 0.22%
• 1M: -1.74%
• YTD: 0.05%
• 6M: 0.95%
• 1Y: 4.24%
• 3Y*: 3.59%
• 5Y*: 0.24%
• 10Y*: 1.67%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AGG vs. BND - Expense Ratio Comparison

Both AGG and BND have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

AGG

iShares Core U.S. Aggregate Bond ETF

BND

Vanguard Total Bond Market ETF

Return for Risk

AGG vs. BND — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AGG

AGG Risk / Return Rank: 60
AGG Sharpe Ratio Rank: 60
AGG Sortino Ratio Rank: 58
AGG Omega Ratio Rank: 50
AGG Calmar Ratio Rank: 74
AGG Martin Ratio Rank: 57

BND

BND Risk / Return Rank: 59
BND Sharpe Ratio Rank: 60
BND Sortino Ratio Rank: 58
BND Omega Ratio Rank: 49
BND Calmar Ratio Rank: 74
BND Martin Ratio Rank: 56

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AGG vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND). 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	BND	Difference
Sharpe ratio Return per unit of total volatility	1.00	0.99	+0.01
Sortino ratio Return per unit of downside risk	1.42	1.41	+0.01
Omega ratio Gain probability vs. loss probability	1.18	1.18	0.00
Calmar ratio Return relative to maximum drawdown	1.81	1.81	0.00
Martin ratio Return relative to average drawdown	5.07	4.98	+0.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AGG vs. BND - Sharpe Ratio Comparison

The current AGG Sharpe Ratio is 1.00, which is comparable to the BND Sharpe Ratio of 0.99. The chart below compares the historical Sharpe Ratios of AGG and BND, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	AGG	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.00	0.99	+0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	0.04	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.31	0.30	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.59	+0.01

Correlation

The correlation between AGG and BND is 0.92, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

AGG vs. BND - Dividend Comparison

AGG's dividend yield for the trailing twelve months is around 3.93%, which matches BND's 3.91% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AGG iShares Core U.S. Aggregate Bond ETF	3.93%	3.89%	3.74%	3.13%	2.39%	1.77%	2.14%	2.70%	2.72%	2.32%	2.39%	2.45%
BND Vanguard Total Bond Market ETF	3.91%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%

Drawdowns

AGG vs. BND - Drawdown Comparison

The maximum AGG drawdown since its inception was -18.43%, roughly equal to the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for AGG and BND.

Drawdown Indicators

	AGG	BND	Difference
Max Drawdown Largest peak-to-trough decline	-18.43%	-18.58%	+0.15%
Max Drawdown (1Y) Largest decline over 1 year	-2.52%	-2.44%	-0.08%
Max Drawdown (5Y) Largest decline over 5 years	-17.82%	-17.91%	+0.09%
Max Drawdown (10Y) Largest decline over 10 years	-18.43%	-18.58%	+0.15%
Current Drawdown Current decline from peak	-2.36%	-2.58%	+0.22%
Average Drawdown Average peak-to-trough decline	-2.71%	-3.07%	+0.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	0.89%	+0.01%

Volatility

AGG vs. BND - Volatility Comparison

iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND) have volatilities of 1.66% and 1.63%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AGG	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.66%	1.63%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	2.55%	2.52%	+0.03%
Volatility (1Y) Calculated over the trailing 1-year period	4.37%	4.30%	+0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.07%	6.00%	+0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.39%	5.52%	-0.13%