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AGG vs. SCHZ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

AGG vs. SCHZ - Performance Comparison

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

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

AGG vs. SCHZ - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
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

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

AGG
AGG Risk / Return Rank: 3535
Overall Rank
AGG Sharpe Ratio Rank: 3535
Sharpe Ratio Rank
AGG Sortino Ratio Rank: 3636
Sortino Ratio Rank
AGG Omega Ratio Rank: 3333
Omega Ratio Rank
AGG Calmar Ratio Rank: 3535
Calmar Ratio Rank
AGG Martin Ratio Rank: 3535
Martin Ratio Rank

SCHZ
SCHZ Risk / Return Rank: 3636
Overall Rank
SCHZ Sharpe Ratio Rank: 3636
Sharpe Ratio Rank
SCHZ Sortino Ratio Rank: 3737
Sortino Ratio Rank
SCHZ Omega Ratio Rank: 3434
Omega Ratio Rank
SCHZ Calmar Ratio Rank: 3737
Calmar Ratio Rank
SCHZ Martin Ratio Rank: 3636
Martin Ratio Rank
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. 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.


AGGSCHZDifference
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

AGG vs. SCHZ - Sharpe Ratio Comparison

The current AGG Sharpe Ratio is 1.24, which is comparable to the SCHZ Sharpe Ratio of 1.27. The chart below compares the historical Sharpe Ratios of AGG and SCHZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Sharpe Ratios by Period


AGGSCHZDifference

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


AGGSCHZDifference

Max Drawdown

Largest 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 Drawdown

Current decline from peak

-1.98%

-2.34%

+0.36%

Average Drawdown

Average peak-to-trough decline

-2.71%

-3.68%

+0.97%

Ulcer Index

Depth 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


AGGSCHZDifference

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.


PositionTTM20252024202320222021202020192018201720162015
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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