AGG vs. VSMAX
AGG (iShares Core U.S. Aggregate Bond ETF) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both funds - AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while VSMAX is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, AGG returned 1.57%/yr vs 11.48%/yr for VSMAX. At a correlation of -0.10, they often move in opposite directions. AGG charges 0.03%/yr vs 0.05%/yr for VSMAX.
Performance
AGG vs. VSMAX - Performance Comparison
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Returns By Period
In the year-to-date period, AGG achieves a 0.52% return, which is significantly lower than VSMAX's 14.59% return. Over the past 10 years, AGG has underperformed VSMAX with an annualized return of 1.57%, while VSMAX has yielded a comparatively higher 11.48% annualized return.
AGG
- 1D
- -0.12%
- 1M
- 0.43%
- YTD
- 0.52%
- 6M
- 0.93%
- 1Y
- 4.50%
- 3Y*
- 4.19%
- 5Y*
- 0.06%
- 10Y*
- 1.57%
VSMAX
- 1D
- 2.58%
- 1M
- 3.08%
- YTD
- 14.59%
- 6M
- 12.93%
- 1Y
- 27.91%
- 3Y*
- 16.37%
- 5Y*
- 6.83%
- 10Y*
- 11.48%
AGG vs. VSMAX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 0.52% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
VSMAX Vanguard Small-Cap Index Fund Admiral Shares | 14.59% | 8.83% | 14.23% | 18.17% | -17.61% | 17.74% | 19.06% | 27.36% | -9.33% | 16.24% |
Correlation
The correlation between AGG and VSMAX is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.39 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.20 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Sep 26, 2003 | -0.10 |
The correlation between AGG and VSMAX shifts across timeframes, from -0.10 (all time) to 0.39 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
AGG vs. VSMAX — Risk / Return Rank
AGG
VSMAX
AGG vs. VSMAX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AGG | VSMAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.49 | ||
| Sortino ratioReturn per unit of downside risk | -0.63 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.29 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.63 | 3.11 | -1.47 |
| Martin ratioReturn relative to average drawdown | 4.82 | 11.42 | -6.60 |
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Drawdowns
AGG vs. VSMAX - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, smaller than the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for AGG and VSMAX.
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Drawdown Indicators
| AGG | VSMAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.43% | -59.68% | +41.25% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -8.97% | +6.21% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -25.25% | +19.14% |
Max Drawdown (5Y)Largest decline over 5 years | -17.82% | -28.14% | +10.32% |
Max Drawdown (10Y)Largest decline over 10 years | -18.43% | -41.82% | +23.39% |
Current DrawdownCurrent decline from peak | -1.88% | -0.32% | -1.56% |
Average DrawdownAverage peak-to-trough decline | -2.71% | -9.68% | +6.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.94% | 2.44% | -1.50% |
Volatility
AGG vs. VSMAX - Volatility Comparison
The current volatility for iShares Core U.S. Aggregate Bond ETF (AGG) is 1.37%, while Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) has a volatility of 5.47%. This indicates that AGG experiences smaller price fluctuations and is considered to be less risky than VSMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGG | VSMAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.37% | 5.47% | -4.10% |
Volatility (6M)Calculated over the trailing 6-month period | 2.81% | 12.32% | -9.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.82% | 16.69% | -12.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.09% | 20.77% | -14.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 21.59% | -16.18% |
AGG vs. VSMAX - Expense Ratio Comparison
AGG has a 0.03% expense ratio, which is lower than VSMAX's 0.05% 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. VSMAX - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.98%, more than VSMAX's 1.19% 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% |
VSMAX Vanguard Small-Cap Index Fund Admiral Shares | 1.19% | 1.33% | 1.30% | 1.56% | 1.54% | 1.24% | 1.14% | 1.39% | 1.67% | 1.35% | 1.49% | 1.48% |
Frequently Asked Questions
AGG and VSMAX have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VSMAX has higher volatility (5.47%) compared to AGG (1.37%). In terms of maximum drawdown, AGG dropped -18.43% vs VSMAX's -59.68%.
VSMAX currently has the higher Sharpe Ratio (1.67 vs 1.19), 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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