AGZ vs. GOVZ
AGZ (iShares Agency Bond ETF) and GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) are both Government Bonds funds from iShares - AGZ tracks the Bloomberg U.S. Agency Bond Index (USD) while GOVZ tracks the ICE BofA Long US Treasury Principal STRIPS Index. Both are passively managed. Over the past 5 years, AGZ returned 1.29%/yr vs -11.18%/yr for GOVZ. A 0.72 correlation means they provide meaningful diversification when combined. AGZ charges 0.20%/yr vs 0.15%/yr for GOVZ.
Performance
AGZ vs. GOVZ - Performance Comparison
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Returns By Period
In the year-to-date period, AGZ achieves a 0.66% return, which is significantly lower than GOVZ's 3.57% return.
AGZ
- 1D
- 0.26%
- 1M
- 0.62%
- YTD
- 0.66%
- 6M
- 0.66%
- 1Y
- 3.65%
- 3Y*
- 4.29%
- 5Y*
- 1.29%
- 10Y*
- 1.82%
GOVZ
- 1D
- 2.29%
- 1M
- 6.77%
- YTD
- 3.57%
- 6M
- 1.48%
- 1Y
- 4.27%
- 3Y*
- -6.85%
- 5Y*
- -11.18%
- 10Y*
- —
AGZ vs. GOVZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
AGZ iShares Agency Bond ETF | 0.66% | 6.05% | 3.08% | 5.18% | -7.77% | -1.05% | 0.01% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 3.57% | -1.81% | -16.24% | 0.90% | -41.03% | -4.86% | -5.61% |
Correlation
The correlation between AGZ and GOVZ is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020 | 0.72 |
The correlation between AGZ and GOVZ has been stable across timeframes, ranging from 0.66 to 0.72 - a consistent structural relationship.
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Return for Risk
AGZ vs. GOVZ — Risk / Return Rank
AGZ
GOVZ
AGZ vs. GOVZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Agency Bond ETF (AGZ) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). 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.
| AGZ | GOVZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.17 | ||
| Sortino ratioReturn per unit of downside risk | +1.68 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.06 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.71 | 0.30 | +2.41 |
| Martin ratioReturn relative to average drawdown | 8.49 | 0.66 | +7.84 |
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Drawdowns
AGZ vs. GOVZ - Drawdown Comparison
The maximum AGZ drawdown since its inception was -11.01%, smaller than the maximum GOVZ drawdown of -59.65%. Use the drawdown chart below to compare losses from any high point for AGZ and GOVZ.
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Drawdown Indicators
| AGZ | GOVZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.01% | -59.65% | +48.64% |
Max Drawdown (1Y)Largest decline over 1 year | -1.35% | -14.16% | +12.81% |
Max Drawdown (3Y)Largest decline over 3 years | -1.85% | -28.72% | +26.87% |
Max Drawdown (5Y)Largest decline over 5 years | -10.66% | -57.63% | +46.97% |
Max Drawdown (10Y)Largest decline over 10 years | -11.01% | — | — |
Current DrawdownCurrent decline from peak | -0.29% | -54.49% | +54.20% |
Average DrawdownAverage peak-to-trough decline | -1.61% | -40.04% | +38.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.43% | 6.51% | -6.08% |
Volatility
AGZ vs. GOVZ - Volatility Comparison
The current volatility for iShares Agency Bond ETF (AGZ) is 0.70%, while iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a volatility of 4.06%. This indicates that AGZ experiences smaller price fluctuations and is considered to be less risky than GOVZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGZ | GOVZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.70% | 4.06% | -3.36% |
Volatility (6M)Calculated over the trailing 6-month period | 1.97% | 10.91% | -8.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.55% | 15.89% | -13.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.55% | 23.88% | -20.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.03% | 23.29% | -20.26% |
AGZ vs. GOVZ - Expense Ratio Comparison
AGZ has a 0.20% expense ratio, which is higher than GOVZ's 0.15% 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%.
Dividends
AGZ vs. GOVZ - Dividend Comparison
AGZ's dividend yield for the trailing twelve months is around 3.71%, less than GOVZ's 4.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGZ iShares Agency Bond ETF | 3.71% | 3.75% | 3.48% | 3.14% | 1.56% | 0.96% | 2.25% | 2.32% | 2.15% | 1.58% | 1.52% | 1.30% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 4.95% | 5.00% | 4.68% | 3.84% | 3.69% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
AGZ and GOVZ have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GOVZ has higher volatility (4.06%) compared to AGZ (0.70%). In terms of maximum drawdown, AGZ dropped -11.01% vs GOVZ's -59.65%.
On 5-year performance, AGZ leads with 1.29% vs -11.18% for GOVZ. On fees, GOVZ is cheaper at 0.15% per year. On volatility, AGZ has been the lower-risk option at 0.70%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, AGZ has performed better with a 1.29% return vs -11.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVZ is cheaper with a 0.15% expense ratio, compared with 0.20% for AGZ.
GOVZ has the higher dividend yield at 4.95%, compared with 3.71% for AGZ.
AGZ tracks Bloomberg U.S. Agency Bond Index (USD), while GOVZ tracks ICE BofA Long US Treasury Principal STRIPS Index. Their fees differ too: 0.20% for AGZ and 0.15% for GOVZ.
AGZ currently has the higher Sharpe Ratio (1.44 vs 0.27), 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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