AGG vs. FBND

Last updated Jun 3, 2026

AGG (iShares Core U.S. Aggregate Bond ETF) and FBND (Fidelity Total Bond ETF) are both exchange-traded funds - AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while FBND is a Intermediate Core-Plus Bond fund actively managed by Fidelity. AGG is passively managed, while FBND is actively managed. Over the past 10 years, AGG returned 1.59%/yr vs 2.58%/yr for FBND. Their correlation of 0.87 suggests significant overlap in exposure. AGG charges 0.03%/yr vs 0.36%/yr for FBND.

Performance

AGG vs. FBND - Performance Comparison

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

Returns By Period

In the year-to-date period, AGG achieves a 0.47% return, which is significantly lower than FBND's 0.70% return. Over the past 10 years, AGG has underperformed FBND with an annualized return of 1.59%, while FBND has yielded a comparatively higher 2.58% annualized return.

AGG

• 1D: 0.03%
• 1M: 0.14%
• YTD: 0.47%
• 6M: 0.49%
• 1Y: 5.29%
• 3Y*: 4.02%
• 5Y*: 0.23%
• 10Y*: 1.59%

FBND

• 1D: 0.09%
• 1M: 0.23%
• YTD: 0.70%
• 6M: 0.67%
• 1Y: 5.75%
• 3Y*: 4.77%
• 5Y*: 0.94%
• 10Y*: 2.58%

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

AGG vs. FBND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AGG iShares Core U.S. Aggregate Bond ETF	0.47%	7.19%	1.31%	5.65%	-13.02%	-1.77%	7.48%	8.46%	0.09%	3.55%
FBND Fidelity Total Bond ETF	0.70%	7.57%	2.13%	6.81%	-12.54%	-0.43%	9.41%	9.82%	-0.57%	3.52%

Correlation

The correlation between AGG and FBND is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Oct 10, 2014	0.87

The correlation between AGG and FBND shifts across timeframes, from 0.87 (all time) to 0.98 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

AGG vs. FBND — Risk / Return Rank

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

AGG

AGG Risk / Return Rank: 37
AGG Sharpe Ratio Rank: 38
AGG Sortino Ratio Rank: 40
AGG Omega Ratio Rank: 37
AGG Calmar Ratio Rank: 36
AGG Martin Ratio Rank: 35

FBND

FBND Risk / Return Rank: 41
FBND Sharpe Ratio Rank: 42
FBND Sortino Ratio Rank: 45
FBND Omega Ratio Rank: 40
FBND Calmar Ratio Rank: 41
FBND Martin Ratio Rank: 39

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. FBND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and Fidelity Total Bond ETF (FBND). 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	FBND	Difference
Sharpe ratio Return per unit of total volatility	1.38	1.50	-0.12
Sortino ratio Return per unit of downside risk	2.06	2.23	-0.17
Omega ratio Gain probability vs. loss probability	1.25	1.26	-0.02
Calmar ratio Return relative to maximum drawdown	1.81	2.06	-0.25
Martin ratio Return relative to average drawdown	5.61	6.28	-0.67
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. FBND - Sharpe Ratio Comparison

The current AGG Sharpe Ratio is 1.38, which is comparable to the FBND Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of AGG and FBND, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AGG	FBND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.38	1.50	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	0.16	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.42	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.45	+0.15

Drawdowns

AGG vs. FBND - Drawdown Comparison

The maximum AGG drawdown since its inception was -18.43%, which is greater than FBND's maximum drawdown of -17.25%. Use the drawdown chart below to compare losses from any high point for AGG and FBND.

Drawdown Indicators

	AGG	FBND	Difference
Max Drawdown Largest peak-to-trough decline	-18.43%	-17.25%	-1.18%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-2.66%	-0.10%
Max Drawdown (3Y) Largest decline over 3 years	-6.11%	-5.94%	-0.17%
Max Drawdown (5Y) Largest decline over 5 years	-17.82%	-17.25%	-0.57%
Max Drawdown (10Y) Largest decline over 10 years	-18.43%	-17.25%	-1.18%
Current Drawdown Current decline from peak	-1.93%	-1.23%	-0.70%
Average Drawdown Average peak-to-trough decline	-2.71%	-3.35%	+0.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.89%	0.88%	+0.01%

Volatility

AGG vs. FBND - Volatility Comparison

iShares Core U.S. Aggregate Bond ETF (AGG) and Fidelity Total Bond ETF (FBND) have volatilities of 1.32% and 1.28%, 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	FBND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.32%	1.28%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	2.76%	2.76%	0.00%
Volatility (1Y) Calculated over the trailing 1-year period	3.85%	3.86%	-0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.09%	5.92%	+0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.41%	6.10%	-0.69%

AGG vs. FBND - Expense Ratio Comparison

AGG has a 0.03% expense ratio, which is lower than FBND's 0.36% expense ratio.

Dividends

AGG vs. FBND - Dividend Comparison

AGG's dividend yield for the trailing twelve months is around 3.98%, less than FBND's 4.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AGG iShares Core U.S. Aggregate Bond ETF	3.98%	3.89%	3.74%	3.13%	2.39%	1.77%	2.14%	2.70%	2.72%	2.32%	2.39%	2.45%
FBND Fidelity Total Bond ETF	4.69%	4.70%	4.73%	4.26%	3.07%	1.86%	4.25%	2.90%	2.93%	2.56%	2.84%	3.26%

Frequently Asked Questions

Can I hold both AGG and FBND in my portfolio?

With a correlation of 0.98, AGG and FBND move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, AGG or FBND?

AGG has higher volatility (1.32%) compared to FBND (1.28%). In terms of maximum drawdown, AGG dropped -18.43% vs FBND's -17.25%.

Which ETF is better, AGG or FBND?

On 10-year performance, FBND leads with 2.58% vs 1.59% for AGG. On fees, AGG is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AGG or FBND?

Over the 10-year period, FBND has performed better with a 2.58% return vs 1.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AGG or FBND?

AGG is cheaper with a 0.03% expense ratio, compared with 0.36% for FBND.

Which ETF pays a higher dividend yield, AGG or FBND?

FBND has the higher dividend yield at 4.69%, compared with 3.98% for AGG.

What is the main difference between AGG and FBND?

AGG is categorized as Total Bond Market, while FBND is Intermediate Core-Plus Bond. They also come from different issuers: iShares and Fidelity. Their fees differ too: 0.03% for AGG and 0.36% for FBND.

Which has better risk-adjusted returns?

FBND currently has the higher Sharpe Ratio (1.50 vs 1.38), 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.