AGG vs. IWM

Last updated Apr 3, 2026

Compare and contrast key facts about iShares Core U.S. Aggregate Bond ETF (AGG) and iShares Russell 2000 ETF (IWM).

AGG and IWM 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 Bloomberg U.S. Aggregate Bond Index. It was launched on Sep 22, 2003. IWM is a passively managed fund by iShares that tracks the performance of the Russell 2000 Index. It was launched on May 22, 2000. Both AGG and IWM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

AGG vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core U.S. Aggregate Bond ETF (AGG) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

AGG vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AGG iShares Core U.S. Aggregate Bond ETF	0.32%	7.19%	1.31%	5.65%	-13.02%	-1.77%	7.48%	8.46%	0.09%	3.55%
IWM iShares Russell 2000 ETF	2.27%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Returns By Period

In the year-to-date period, AGG achieves a 0.32% return, which is significantly lower than IWM's 2.27% return. Over the past 10 years, AGG has underperformed IWM with an annualized return of 1.68%, while IWM has yielded a comparatively higher 10.00% annualized return.

AGG

• 1D: 0.23%
• 1M: -1.00%
• YTD: 0.32%
• 6M: 0.90%
• 1Y: 4.41%
• 3Y*: 3.55%
• 5Y*: 0.29%
• 10Y*: 1.68%

IWM

• 1D: 0.69%
• 1M: -2.89%
• YTD: 2.27%
• 6M: 3.51%
• 1Y: 25.33%
• 3Y*: 13.42%
• 5Y*: 3.61%
• 10Y*: 10.00%

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

AGG vs. IWM - Expense Ratio Comparison

AGG has a 0.03% expense ratio, which is lower than IWM's 0.19% 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%.

IWM

iShares Russell 2000 ETF

AGG

iShares Core U.S. Aggregate Bond ETF

Return for Risk

AGG vs. IWM — Risk / Return Rank

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

AGG

AGG Risk / Return Rank: 49
AGG Sharpe Ratio Rank: 53
AGG Sortino Ratio Rank: 50
AGG Omega Ratio Rank: 42
AGG Calmar Ratio Rank: 58
AGG Martin Ratio Rank: 42

IWM

IWM Risk / Return Rank: 60
IWM Sharpe Ratio Rank: 58
IWM Sortino Ratio Rank: 60
IWM Omega Ratio Rank: 52
IWM Calmar Ratio Rank: 67
IWM Martin Ratio Rank: 63

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. IWM - 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 Russell 2000 ETF (IWM). 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	IWM	Difference
Sharpe ratio Return per unit of total volatility	1.02	1.10	-0.08
Sortino ratio Return per unit of downside risk	1.44	1.64	-0.21
Omega ratio Gain probability vs. loss probability	1.18	1.21	-0.03
Calmar ratio Return relative to maximum drawdown	1.70	1.99	-0.28
Martin ratio Return relative to average drawdown	4.71	7.27	-2.56
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. IWM - Sharpe Ratio Comparison

The current AGG Sharpe Ratio is 1.02, which is comparable to the IWM Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of AGG and IWM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	AGG	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.02	1.10	-0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.05	0.16	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.31	0.44	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.34	+0.25

Correlation

The correlation between AGG and IWM is -0.11. 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.

Dividends

AGG vs. IWM - Dividend Comparison

AGG's dividend yield for the trailing twelve months is around 3.94%, more than IWM's 1.01% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AGG iShares Core U.S. Aggregate Bond ETF	3.94%	3.89%	3.74%	3.13%	2.39%	1.77%	2.14%	2.70%	2.72%	2.32%	2.39%	2.45%
IWM iShares Russell 2000 ETF	1.01%	1.04%	1.15%	1.35%	1.48%	0.94%	1.04%	1.26%	1.40%	1.26%	1.38%	1.54%

Drawdowns

AGG vs. IWM - Drawdown Comparison

The maximum AGG drawdown since its inception was -18.43%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for AGG and IWM.

Drawdown Indicators

	AGG	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-18.43%	-59.05%	+40.62%
Max Drawdown (1Y) Largest decline over 1 year	-2.52%	-11.03%	+8.51%
Max Drawdown (5Y) Largest decline over 5 years	-17.82%	-31.91%	+14.09%
Max Drawdown (10Y) Largest decline over 10 years	-18.43%	-41.13%	+22.70%
Current Drawdown Current decline from peak	-2.07%	-6.69%	+4.62%
Average Drawdown Average peak-to-trough decline	-2.71%	-10.83%	+8.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.91%	3.76%	-2.85%

Volatility

AGG vs. IWM - Volatility Comparison

The current volatility for iShares Core U.S. Aggregate Bond ETF (AGG) is 1.69%, while iShares Russell 2000 ETF (IWM) has a volatility of 7.32%. This indicates that AGG experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AGG	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.69%	7.32%	-5.63%
Volatility (6M) Calculated over the trailing 6-month period	2.55%	14.50%	-11.95%
Volatility (1Y) Calculated over the trailing 1-year period	4.36%	23.19%	-18.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.07%	22.53%	-16.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.39%	22.98%	-17.59%