AGG vs. ISTB
AGG (iShares Core U.S. Aggregate Bond ETF) and ISTB (iShares Core 1-5 Year USD Bond ETF) are both exchange-traded funds - AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD). Both are passively managed. Over the past 10 years, AGG returned 1.57%/yr vs 2.27%/yr for ISTB. A 0.72 correlation means they provide meaningful diversification when combined. AGG charges 0.03%/yr vs 0.06%/yr for ISTB.
Performance
AGG vs. ISTB - 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 ISTB's 0.49% return. Over the past 10 years, AGG has underperformed ISTB with an annualized return of 1.57%, while ISTB has yielded a comparatively higher 2.27% 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%
ISTB
- 1D
- -0.08%
- 1M
- 0.15%
- YTD
- 0.49%
- 6M
- 0.71%
- 1Y
- 4.19%
- 3Y*
- 4.95%
- 5Y*
- 1.85%
- 10Y*
- 2.27%
AGG vs. ISTB - 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% |
ISTB iShares Core 1-5 Year USD Bond ETF | 0.49% | 6.36% | 4.37% | 5.56% | -6.08% | -0.71% | 4.75% | 5.61% | 1.02% | 1.72% |
Correlation
The correlation between AGG and ISTB is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012 | 0.72 |
The correlation between AGG and ISTB shifts across timeframes, from 0.72 (all time) to 0.92 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
AGG vs. ISTB — Risk / Return Rank
AGG
ISTB
AGG vs. ISTB - 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 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.
| AGG | ISTB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.03 | ||
| Sortino ratioReturn per unit of downside risk | -1.70 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.46 | -0.23 |
| Calmar ratioReturn relative to maximum drawdown | 1.87 | 3.34 | -1.48 |
| Martin ratioReturn relative to average drawdown | 5.73 | 12.72 | -6.99 |
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 | ISTB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.34 | 2.37 | -1.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.02 | 0.67 | -0.65 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 0.91 | -0.62 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.59 | 0.84 | -0.25 |
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.
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Drawdown Indicators
| AGG | ISTB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.43% | -9.34% | -9.09% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -1.26% | -1.50% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -1.36% | -4.75% |
Max Drawdown (5Y)Largest decline over 5 years | -17.82% | -9.34% | -8.48% |
Max Drawdown (10Y)Largest decline over 10 years | -18.43% | -9.34% | -9.09% |
Current DrawdownCurrent decline from peak | -2.14% | -0.42% | -1.72% |
Average DrawdownAverage peak-to-trough decline | -2.71% | -1.22% | -1.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 0.33% | +0.57% |
Volatility
AGG vs. ISTB - Volatility Comparison
iShares Core U.S. Aggregate Bond ETF (AGG) has a higher volatility of 1.30% compared to iShares Core 1-5 Year USD Bond ETF (ISTB) at 0.54%. 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.
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Volatility by Period
| AGG | ISTB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.30% | 0.54% | +0.76% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 1.28% | +1.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.85% | 1.77% | +2.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.09% | 2.79% | +3.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.40% | 2.51% | +2.89% |
AGG vs. ISTB - Expense Ratio Comparison
AGG has a 0.03% 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%.
Dividends
AGG vs. ISTB - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.99%, less than ISTB's 4.25% yield.
| 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% |
ISTB iShares Core 1-5 Year USD Bond ETF | 4.25% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
Frequently Asked Questions
With a correlation of 0.91, AGG and ISTB 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.
AGG has higher volatility (1.30%) compared to ISTB (0.54%). In terms of maximum drawdown, AGG dropped -18.43% vs ISTB's -9.34%.
On 10-year performance, ISTB leads with 2.27% vs 1.57% for AGG. On fees, AGG is cheaper at 0.03% per year. On volatility, ISTB has been the lower-risk option at 0.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ISTB has performed better with a 2.27% 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 0.06% for ISTB.
ISTB has the higher dividend yield at 4.25%, compared with 3.99% for AGG.
AGG is categorized as Total Bond Market, while ISTB is Short-Term Bond. AGG tracks Bloomberg U.S. Aggregate Bond Index, while ISTB tracks BBG US Universal 1-5 Year Index (USD). Their fees differ too: 0.03% for AGG and 0.06% for ISTB.
ISTB currently has the higher Sharpe Ratio (2.37 vs 1.34), 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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