AGG vs. BND
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 Barclays Capital 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 Barclays Capital U.S. Aggregate Bond 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AGG or BND.
Correlation
The correlation between AGG and BND is -0.14. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
AGG vs. BND - Performance Comparison
Key characteristics
AGG:
1.28
BND:
1.36
AGG:
1.86
BND:
1.98
AGG:
1.22
BND:
1.24
AGG:
0.53
BND:
0.54
AGG:
3.30
BND:
3.51
AGG:
2.09%
BND:
2.06%
AGG:
5.39%
BND:
5.29%
AGG:
-18.43%
BND:
-18.84%
AGG:
-6.60%
BND:
-6.72%
Returns By Period
In the year-to-date period, AGG achieves a 2.57% return, which is significantly lower than BND's 2.90% return. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: AGG at 1.51% and BND at 1.51%.
AGG
2.57%
-0.54%
1.95%
6.96%
-0.79%
1.51%
BND
2.90%
-0.20%
2.25%
7.25%
-0.79%
1.51%
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AGG vs. BND - Expense Ratio Comparison
AGG has a 0.05% expense ratio, which is higher than BND's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
AGG vs. BND — Risk-Adjusted Performance Rank
AGG
BND
AGG vs. BND - Risk-Adjusted Performance 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.
Dividends
AGG vs. BND - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.47%, less than BND's 3.73% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.47% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.96% | 2.32% | 2.39% | 2.45% | 2.40% |
BND Vanguard Total Bond Market ETF | 3.73% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
Drawdowns
AGG vs. BND - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, roughly equal to the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for AGG and BND. For additional features, visit the drawdowns tool.
Volatility
AGG vs. BND - Volatility Comparison
iShares Core U.S. Aggregate Bond ETF (AGG) has a higher volatility of 2.25% compared to Vanguard Total Bond Market ETF (BND) at 2.13%. This indicates that AGG's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.