AGG vs. ISTB
Compare and contrast key facts about iShares Core U.S. Aggregate Bond ETF (AGG) and iShares Core 1-5 Year USD Bond ETF (ISTB).
AGG and ISTB 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. ISTB is a passively managed fund by iShares that tracks the performance of the Barclays U.S. Government/Credit 1-5 Year Bond Index. It was launched on Oct 18, 2012. Both AGG and ISTB 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 ISTB.
Key characteristics
| AGG | ISTB | |
|---|---|---|
| YTD Return | 1.78% | 3.78% |
| 1Y Return | 6.87% | 6.23% |
| 3Y Return (Ann) | -2.07% | 0.95% |
| 5Y Return (Ann) | -0.18% | 1.47% |
| 10Y Return (Ann) | 1.45% | 1.86% |
| Sharpe Ratio | 1.29 | 2.49 |
| Sortino Ratio | 1.88 | 3.85 |
| Omega Ratio | 1.23 | 1.49 |
| Calmar Ratio | 0.52 | 1.53 |
| Martin Ratio | 4.35 | 12.75 |
| Ulcer Index | 1.71% | 0.51% |
| Daily Std Dev | 5.79% | 2.62% |
| Max Drawdown | -18.43% | -9.34% |
| Current Drawdown | -8.52% | -1.26% |
Correlation
The correlation between AGG and ISTB is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
AGG vs. ISTB - Performance Comparison
In the year-to-date period, AGG achieves a 1.78% return, which is significantly lower than ISTB's 3.78% return. Over the past 10 years, AGG has underperformed ISTB with an annualized return of 1.45%, while ISTB has yielded a comparatively higher 1.86% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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AGG vs. ISTB - Expense Ratio Comparison
AGG has a 0.05% expense ratio, which is lower than ISTB's 0.06% 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%.
Risk-Adjusted Performance
AGG vs. ISTB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and iShares Core 1-5 Year USD Bond ETF (ISTB). 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. ISTB - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.64%, less than ISTB's 3.74% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.64% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.96% | 2.32% | 2.39% | 2.45% | 2.40% | 2.32% |
ISTB iShares Core 1-5 Year USD Bond ETF | 3.74% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.07% | 1.90% | 1.58% | 1.07% | 0.60% |
Drawdowns
AGG vs. ISTB - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, which is greater than ISTB's maximum drawdown of -9.34%. Use the drawdown chart below to compare losses from any high point for AGG and ISTB. For additional features, visit the drawdowns tool.
Volatility
AGG vs. ISTB - Volatility Comparison
iShares Core U.S. Aggregate Bond ETF (AGG) has a higher volatility of 1.64% compared to iShares Core 1-5 Year USD Bond ETF (ISTB) at 0.67%. This indicates that AGG's price experiences larger fluctuations and is considered to be riskier than ISTB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.