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AOA vs. IAGG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

AOA vs. IAGG

Last updated Jun 4, 2026

AOA (iShares Core 80/20 Aggressive Allocation ETF) and IAGG (iShares Core International Aggregate Bond ETF) are both exchange-traded funds - AOA is a Diversified Portfolio fund tracking the S&P Target Risk Aggressive Index, while IAGG is a Global Bonds fund tracking the Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index. Both are passively managed. Over the past 10 years, AOA returned 10.56%/yr vs 2.17%/yr for IAGG. At a 0.11 correlation, their price movements are largely independent. AOA charges 0.15%/yr vs 0.07%/yr for IAGG.

Performance

AOA vs. IAGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core 80/20 Aggressive Allocation ETF (AOA) and iShares Core International Aggregate Bond ETF (IAGG). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, AOA achieves a 9.93% return, which is significantly higher than IAGG's 0.92% return. Over the past 10 years, AOA has outperformed IAGG with an annualized return of 10.56%, while IAGG has yielded a comparatively lower 2.17% annualized return.

AOA

1D
-0.50%
1M
4.14%
YTD
9.93%
6M
10.64%
1Y
24.29%
3Y*
17.52%
5Y*
9.15%
10Y*
10.56%

IAGG

1D
-0.20%
1M
0.66%
YTD
0.92%
6M
0.72%
1Y
2.30%
3Y*
4.59%
5Y*
1.11%
10Y*
2.17%
*Multi-year figures are annualized to reflect compound growth (CAGR)

AOA vs. IAGG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
AOA
iShares Core 80/20 Aggressive Allocation ETF		9.93%19.59%13.55%18.27%-16.23%15.42%12.82%22.60%-7.86%20.05%
IAGG
iShares Core International Aggregate Bond ETF		0.92%3.26%4.51%8.49%-10.86%-1.87%4.63%7.99%3.38%2.09%

Correlation

The correlation between AOA and IAGG is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.44

Correlation (3Y)
Calculated over the trailing 3-year period

0.35

Correlation (5Y)
Calculated over the trailing 5-year period

0.27

Correlation (10Y)
Calculated over the trailing 10-year period

0.12

Correlation (All Time)
Calculated using the full available price history since Nov 13, 2015

0.11

Over the past year, AOA and IAGG have become more correlated (0.44) than their long-term average of 0.11, meaning their price movements have been converging.

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iShares Core 80/20 Aggressive Allocation ETF

iShares Core International Aggregate Bond ETF

Often compared with AOA:
AOA vs. AORAOA vs. VOOAOA vs. VASGXAOA vs. AOKAOA vs. SPYAOA vs. AOMAOA vs. VSMGX
Often compared with IAGG:
IAGG vs. BNDXIAGG vs. AGGIAGG vs. IBNDIAGG vs. IUSBIAGG vs. FBIIXIAGG vs. BWXIAGG vs. BND

Return for Risk

AOA vs. IAGG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
AOA
AOA Risk / Return Rank: 6767
Overall Rank
AOA Sharpe Ratio Rank: 6868
Sharpe Ratio Rank
AOA Sortino Ratio Rank: 6969
Sortino Ratio Rank
AOA Omega Ratio Rank: 6969
Omega Ratio Rank
AOA Calmar Ratio Rank: 5959
Calmar Ratio Rank
AOA Martin Ratio Rank: 7070
Martin Ratio Rank
IAGG
IAGG Risk / Return Rank: 2222
Overall Rank
IAGG Sharpe Ratio Rank: 2323
Sharpe Ratio Rank
IAGG Sortino Ratio Rank: 2222
Sortino Ratio Rank
IAGG Omega Ratio Rank: 2222
Omega Ratio Rank
IAGG Calmar Ratio Rank: 2222
Calmar Ratio Rank
IAGG Martin Ratio Rank: 2323
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.

AOA vs. IAGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core 80/20 Aggressive Allocation ETF (AOA) and iShares Core International Aggregate Bond ETF (IAGG). 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.

AOAIAGGDifference
Sharpe ratioReturn per unit of total volatility
2.30
0.81

+1.48

Sortino ratioReturn per unit of downside risk
3.23
1.19

+2.04

Omega ratioGain probability vs. loss probability

1.43

1.15

+0.28

Calmar ratioReturn relative to maximum drawdown

2.98

1.00

+1.98

Martin ratioReturn relative to average drawdown

13.20

2.99

+10.21

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AOA vs. IAGG - Sharpe Ratio Comparison

The current AOA Sharpe Ratio is 2.30, which is higher than the IAGG Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of AOA and IAGG, 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

AOAIAGGDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.30

0.81

+1.48

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.71

0.25

+0.46

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.78

0.54

+0.24

Sharpe Ratio (All Time)

Calculated using the full available price history

0.69

0.62

+0.07

Drawdowns

AOA vs. IAGG - Drawdown Comparison

The maximum AOA drawdown since its inception was -28.38%, which is greater than IAGG's maximum drawdown of -13.88%. Use the drawdown chart below to compare losses from any high point for AOA and IAGG.

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Drawdown Indicators

AOAIAGGDifference

Max Drawdown

Largest peak-to-trough decline

-28.38%

-13.88%

-14.50%

Max Drawdown (1Y)

Largest decline over 1 year

-8.20%

-2.32%

-5.88%

Max Drawdown (3Y)

Largest decline over 3 years

-12.94%

-2.32%

-10.62%

Max Drawdown (5Y)

Largest decline over 5 years

-23.62%

-13.57%

-10.05%

Max Drawdown (10Y)

Largest decline over 10 years

-28.38%

-13.88%

-14.50%

Current Drawdown

Current decline from peak

-0.50%

-0.98%

+0.48%

Average Drawdown

Average peak-to-trough decline

-4.05%

-2.85%

-1.20%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.84%

0.77%

+1.07%

Volatility

AOA vs. IAGG - Volatility Comparison

iShares Core 80/20 Aggressive Allocation ETF (AOA) has a higher volatility of 3.25% compared to iShares Core International Aggregate Bond ETF (IAGG) at 1.18%. This indicates that AOA's price experiences larger fluctuations and is considered to be riskier than IAGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

AOAIAGGDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.25%

1.18%

+2.07%

Volatility (6M)

Calculated over the trailing 6-month period

8.51%

2.40%

+6.11%

Volatility (1Y)

Calculated over the trailing 1-year period

10.63%

2.84%

+7.79%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.98%

4.51%

+8.47%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

13.55%

4.05%

+9.50%

AOA vs. IAGG - Expense Ratio Comparison

AOA has a 0.15% expense ratio, which is higher than IAGG's 0.07% 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

AOA vs. IAGG - Dividend Comparison

AOA's dividend yield for the trailing twelve months is around 2.04%, less than IAGG's 3.66% yield.

PositionTTM20252024202320222021202020192018201720162015
AOA
iShares Core 80/20 Aggressive Allocation ETF		2.04%2.18%2.30%2.22%2.10%1.67%1.71%2.50%2.37%5.09%2.26%2.15%
IAGG
iShares Core International Aggregate Bond ETF		3.66%3.08%4.28%3.55%2.27%1.16%1.95%2.82%3.02%1.74%1.56%0.13%

Frequently Asked Questions

AOA and IAGG have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

AOA has higher volatility (3.25%) compared to IAGG (1.18%). In terms of maximum drawdown, AOA dropped -28.38% vs IAGG's -13.88%.

On 10-year performance, AOA leads with 10.56% vs 2.17% for IAGG. On fees, IAGG is cheaper at 0.07% per year. On volatility, IAGG has been the lower-risk option at 1.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, AOA has performed better with a 10.56% return vs 2.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IAGG is cheaper with a 0.07% expense ratio, compared with 0.15% for AOA.

IAGG has the higher dividend yield at 3.66%, compared with 2.04% for AOA.

AOA is categorized as Diversified Portfolio, while IAGG is Global Bonds. AOA tracks S&P Target Risk Aggressive Index, while IAGG tracks Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index. Their fees differ too: 0.15% for AOA and 0.07% for IAGG.

AOA currently has the higher Sharpe Ratio (2.30 vs 0.81), 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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