AOR vs. AGG
AOR (iShares Core 60/40 Balanced Allocation ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - AOR is a Diversified Portfolio fund tracking the S&P Target Risk Growth Index, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Both are passively managed. Over the past 10 years, AOR returned 8.58%/yr vs 1.56%/yr for AGG. At a 0.08 correlation, their price movements are largely independent. AOR charges 0.15%/yr vs 0.03%/yr for AGG.
Performance
AOR vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, AOR achieves a 7.85% return, which is significantly higher than AGG's 0.61% return. Over the past 10 years, AOR has outperformed AGG with an annualized return of 8.58%, while AGG has yielded a comparatively lower 1.56% annualized return.
AOR
- 1D
- 0.95%
- 1M
- 2.42%
- YTD
- 7.85%
- 6M
- 8.39%
- 1Y
- 19.38%
- 3Y*
- 13.65%
- 5Y*
- 7.09%
- 10Y*
- 8.58%
AGG
- 1D
- 0.09%
- 1M
- 1.18%
- YTD
- 0.61%
- 6M
- 0.92%
- 1Y
- 4.96%
- 3Y*
- 4.06%
- 5Y*
- 0.18%
- 10Y*
- 1.56%
AOR vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AOR iShares Core 60/40 Balanced Allocation ETF | 7.85% | 16.44% | 10.68% | 15.75% | -15.64% | 11.19% | 11.42% | 18.91% | -5.82% | 15.80% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.61% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between AOR and AGG is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.46 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.39 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.25 |
Correlation (All Time) Calculated using the full available price history since Nov 11, 2008 | 0.08 |
Over the past year, AOR and AGG have become more correlated (0.50) than their long-term average of 0.08, meaning their price movements have been converging.
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Return for Risk
AOR vs. AGG — Risk / Return Rank
AOR
AGG
AOR vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 60/40 Balanced Allocation ETF (AOR) and iShares Core U.S. Aggregate Bond ETF (AGG). 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.
| AOR | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.89 | ||
| Sortino ratioReturn per unit of downside risk | +1.16 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.23 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 2.93 | 1.80 | +1.13 |
| Martin ratioReturn relative to average drawdown | 12.60 | 5.30 | +7.29 |
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Drawdowns
AOR vs. AGG - Drawdown Comparison
The maximum AOR drawdown since its inception was -24.44%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for AOR and AGG.
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Drawdown Indicators
| AOR | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.44% | -18.43% | -6.01% |
Max Drawdown (1Y)Largest decline over 1 year | -6.64% | -2.76% | -3.88% |
Max Drawdown (3Y)Largest decline over 3 years | -9.77% | -6.11% | -3.66% |
Max Drawdown (5Y)Largest decline over 5 years | -21.72% | -17.82% | -3.90% |
Max Drawdown (10Y)Largest decline over 10 years | -22.95% | -18.43% | -4.52% |
Current DrawdownCurrent decline from peak | -0.10% | -1.79% | +1.69% |
Average DrawdownAverage peak-to-trough decline | -3.47% | -2.71% | -0.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.54% | 0.94% | +0.60% |
Volatility
AOR vs. AGG - Volatility Comparison
iShares Core 60/40 Balanced Allocation ETF (AOR) has a higher volatility of 3.61% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.37%. This indicates that AOR's price experiences larger fluctuations and is considered to be riskier than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AOR | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.61% | 1.37% | +2.24% |
Volatility (6M)Calculated over the trailing 6-month period | 7.37% | 2.81% | +4.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.84% | 3.80% | +5.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.63% | 6.10% | +4.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.70% | 5.41% | +5.29% |
AOR vs. AGG - Expense Ratio Comparison
AOR has a 0.15% expense ratio, which is higher than AGG's 0.03% 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
AOR vs. AGG - Dividend Comparison
AOR's dividend yield for the trailing twelve months is around 2.46%, less than AGG's 3.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.97% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
AOR iShares Core 60/40 Balanced Allocation ETF | 2.46% | 2.55% | 2.66% | 2.50% | 2.12% | 1.64% | 1.89% | 2.56% | 2.49% | 4.51% | 2.16% | 2.12% |
Frequently Asked Questions
AOR and AGG have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AOR has higher volatility (3.61%) compared to AGG (1.37%). In terms of maximum drawdown, AOR dropped -24.44% vs AGG's -18.43%.
On 10-year performance, AOR leads with 8.58% vs 1.56% for AGG. On fees, AGG is cheaper at 0.03% per year. On volatility, AGG has been the lower-risk option at 1.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, AOR has performed better with a 8.58% return vs 1.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AGG is cheaper with a 0.03% expense ratio, compared with 0.15% for AOR.
AGG has the higher dividend yield at 3.97%, compared with 2.46% for AOR.
AOR is categorized as Diversified Portfolio, while AGG is Total Bond Market. AOR tracks S&P Target Risk Growth Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. Their fees differ too: 0.15% for AOR and 0.03% for AGG.
AOR currently has the higher Sharpe Ratio (2.21 vs 1.32), 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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