AGG vs. SCHZ
Compare and contrast key facts about iShares Core U.S. Aggregate Bond ETF (AGG) and Schwab U.S. Aggregate Bond ETF (SCHZ).
AGG and SCHZ 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. SCHZ is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Aggregate. It was launched on Jul 14, 2011. Both AGG and SCHZ 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 SCHZ.
Key characteristics
| AGG | SCHZ | |
|---|---|---|
| YTD Return | 1.78% | 3.44% |
| 1Y Return | 6.87% | 8.83% |
| 3Y Return (Ann) | -2.07% | -0.52% |
| 5Y Return (Ann) | -0.18% | 1.48% |
| 10Y Return (Ann) | 1.45% | 2.85% |
| Sharpe Ratio | 1.29 | 1.58 |
| Sortino Ratio | 1.88 | 2.36 |
| Omega Ratio | 1.23 | 1.28 |
| Calmar Ratio | 0.52 | 0.84 |
| Martin Ratio | 4.35 | 6.22 |
| Ulcer Index | 1.71% | 1.52% |
| Daily Std Dev | 5.79% | 5.98% |
| Max Drawdown | -18.43% | -16.93% |
| Current Drawdown | -8.52% | -3.46% |
Correlation
The correlation between AGG and SCHZ is 0.92, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
AGG vs. SCHZ - Performance Comparison
In the year-to-date period, AGG achieves a 1.78% return, which is significantly lower than SCHZ's 3.44% return. Over the past 10 years, AGG has underperformed SCHZ with an annualized return of 1.45%, while SCHZ has yielded a comparatively higher 2.85% 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. SCHZ - Expense Ratio Comparison
AGG has a 0.05% expense ratio, which is higher than SCHZ's 0.04% expense ratio. However, 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. SCHZ - Risk-Adjusted Performance 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.
Dividends
AGG vs. SCHZ - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.64%, less than SCHZ's 5.85% 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% |
SCHZ Schwab U.S. Aggregate Bond ETF | 5.85% | 3.85% | 3.73% | 3.61% | 4.05% | 4.67% | 4.44% | 3.81% | 3.37% | 2.81% | 3.06% | 3.06% |
Drawdowns
AGG vs. SCHZ - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, which is greater than SCHZ's maximum drawdown of -16.93%. Use the drawdown chart below to compare losses from any high point for AGG and SCHZ. For additional features, visit the drawdowns tool.
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 1.64% and 1.59%, 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.