AGG vs. SCHZ
AGG (iShares Core U.S. Aggregate Bond ETF) and SCHZ (Schwab U.S. Aggregate Bond ETF) are both Total Bond Market funds - AGG tracks the Bloomberg U.S. Aggregate Bond Index while SCHZ tracks the Bloomberg US Aggregate Bond Index. Both are passively managed. Over the past 10 years, AGG returned 1.60%/yr vs 1.54%/yr for SCHZ. Their correlation of 0.93 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.
Performance
AGG vs. SCHZ - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with AGG having a 0.42% return and SCHZ slightly higher at 0.43%. Both investments have delivered pretty close results over the past 10 years, with AGG having a 1.60% annualized return and SCHZ not far behind at 1.54%.
AGG
- 1D
- 0.16%
- 1M
- 0.22%
- YTD
- 0.42%
- 6M
- 0.49%
- 1Y
- 4.69%
- 3Y*
- 4.01%
- 5Y*
- 0.13%
- 10Y*
- 1.60%
SCHZ
- 1D
- 0.13%
- 1M
- 0.26%
- YTD
- 0.43%
- 6M
- 0.46%
- 1Y
- 4.74%
- 3Y*
- 3.99%
- 5Y*
- 0.09%
- 10Y*
- 1.54%
AGG vs. SCHZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 0.42% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
SCHZ Schwab U.S. Aggregate Bond ETF | 0.43% | 7.24% | 1.26% | 5.60% | -13.17% | -1.72% | 7.46% | 8.65% | -0.26% | 3.50% |
Correlation
The correlation between AGG and SCHZ 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 | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Jul 15, 2011 | 0.93 |
The correlation between AGG and SCHZ has been stable across timeframes, ranging from 0.93 to 0.99 - a consistent structural relationship.
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Return for Risk
AGG vs. SCHZ — Risk / Return Rank
AGG
SCHZ
AGG vs. SCHZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and Schwab U.S. Aggregate Bond ETF (SCHZ). 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 | SCHZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.22 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.70 | 1.77 | -0.06 |
| Martin ratioReturn relative to average drawdown | 5.21 | 5.38 | -0.17 |
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 | SCHZ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.24 | 1.27 | -0.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.02 | 0.02 | +0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.30 | 0.29 | +0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.59 | 0.44 | +0.15 |
Drawdowns
AGG vs. SCHZ - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, roughly equal to the maximum SCHZ drawdown of -18.74%. Use the drawdown chart below to compare losses from any high point for AGG and SCHZ.
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Drawdown Indicators
| AGG | SCHZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.43% | -18.74% | +0.31% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -2.70% | -0.06% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -6.18% | +0.07% |
Max Drawdown (5Y)Largest decline over 5 years | -17.82% | -18.01% | +0.19% |
Max Drawdown (10Y)Largest decline over 10 years | -18.43% | -18.74% | +0.31% |
Current DrawdownCurrent decline from peak | -1.98% | -2.34% | +0.36% |
Average DrawdownAverage peak-to-trough decline | -2.71% | -3.68% | +0.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 0.88% | +0.02% |
Volatility
AGG vs. SCHZ - Volatility Comparison
iShares Core U.S. Aggregate Bond ETF (AGG) and Schwab U.S. Aggregate Bond ETF (SCHZ) have volatilities of 1.29% and 1.24%, 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.
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Volatility by Period
| AGG | SCHZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.29% | 1.24% | +0.05% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 2.67% | +0.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.85% | 3.79% | +0.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.09% | 6.08% | +0.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.40% | 5.41% | -0.01% |
AGG vs. SCHZ - Expense Ratio Comparison
Both AGG and SCHZ have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
AGG vs. SCHZ - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.98%, less than SCHZ's 4.11% 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% |
SCHZ Schwab U.S. Aggregate Bond ETF | 4.11% | 4.05% | 3.96% | 3.28% | 2.63% | 2.16% | 2.43% | 2.79% | 2.56% | 2.40% | 2.24% | 2.11% |
Frequently Asked Questions
With a correlation of 0.98, AGG and SCHZ 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 (1.29%) compared to SCHZ (1.24%). In terms of maximum drawdown, AGG dropped -18.43% vs SCHZ's -18.74%.
On 10-year performance, AGG leads with 1.60% vs 1.54% for SCHZ. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, AGG has performed better with a 1.60% return vs 1.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AGG and SCHZ have the same expense ratio: 0.03% per year.
SCHZ has the higher dividend yield at 4.11%, compared with 3.98% for AGG.
AGG tracks Bloomberg U.S. Aggregate Bond Index, while SCHZ tracks Bloomberg US Aggregate Bond Index. They also come from different issuers: iShares and Charles Schwab.
SCHZ currently has the higher Sharpe Ratio (1.27 vs 1.24), 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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