AGG vs. IAU
AGG (iShares Core U.S. Aggregate Bond ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, AGG returned 1.57%/yr vs 13.31%/yr for IAU. At a 0.23 correlation, their price movements are largely independent. AGG charges 0.03%/yr vs 0.25%/yr for IAU.
Performance
AGG vs. IAU - 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 IAU's 2.98% return. Over the past 10 years, AGG has underperformed IAU with an annualized return of 1.57%, while IAU has yielded a comparatively higher 13.31% 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%
IAU
- 1D
- -0.98%
- 1M
- -1.62%
- YTD
- 2.98%
- 6M
- 5.50%
- 1Y
- 32.20%
- 3Y*
- 31.29%
- 5Y*
- 18.32%
- 10Y*
- 13.31%
AGG vs. IAU - 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% |
IAU iShares Gold Trust | 2.98% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between AGG and IAU is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.33 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Jan 31, 2005 | 0.23 |
The correlation between AGG and IAU shifts across timeframes, from 0.23 (all time) to 0.37 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
AGG vs. IAU — Risk / Return Rank
AGG
IAU
AGG vs. IAU - 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 Gold Trust (IAU). 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 | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.12 | ||
| Sortino ratioReturn per unit of downside risk | +0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.24 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.87 | 1.69 | +0.18 |
| Martin ratioReturn relative to average drawdown | 5.73 | 4.19 | +1.54 |
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 | IAU | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.34 | 1.23 | +0.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.02 | 1.03 | -1.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 0.84 | -0.55 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.59 | 0.62 | -0.03 |
Drawdowns
AGG vs. IAU - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for AGG and IAU.
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Drawdown Indicators
| AGG | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.43% | -45.14% | +26.71% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -19.18% | +16.42% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -19.18% | +13.07% |
Max Drawdown (5Y)Largest decline over 5 years | -17.82% | -20.93% | +3.11% |
Max Drawdown (10Y)Largest decline over 10 years | -18.43% | -21.82% | +3.39% |
Current DrawdownCurrent decline from peak | -2.14% | -17.70% | +15.56% |
Average DrawdownAverage peak-to-trough decline | -2.71% | -15.96% | +13.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 7.71% | -6.81% |
Volatility
AGG vs. IAU - Volatility Comparison
The current volatility for iShares Core U.S. Aggregate Bond ETF (AGG) is 1.30%, while iShares Gold Trust (IAU) has a volatility of 5.50%. This indicates that AGG experiences smaller price fluctuations and is considered to be less risky than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGG | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.30% | 5.50% | -4.20% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 23.02% | -20.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.85% | 26.42% | -22.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.09% | 17.95% | -11.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.40% | 15.90% | -10.50% |
AGG vs. IAU - Expense Ratio Comparison
AGG has a 0.03% expense ratio, which is lower than IAU's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
AGG vs. IAU - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.99%, while IAU has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IAU iShares Gold Trust | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
AGG and IAU have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IAU has higher volatility (5.50%) compared to AGG (1.30%). In terms of maximum drawdown, AGG dropped -18.43% vs IAU's -45.14%.
On 10-year performance, IAU leads with 13.31% 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, IAU has performed better with a 13.31% 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 0.25% for IAU.
AGG has the higher dividend yield at 3.99%, compared with 0.00% for IAU.
AGG is categorized as Total Bond Market, while IAU is Gold. AGG tracks Bloomberg U.S. Aggregate Bond Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.03% for AGG and 0.25% for IAU.
AGG currently has the higher Sharpe Ratio (1.34 vs 1.23), 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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