BFFAX vs. AGG
BFFAX (American Funds The Bond Fund of America Class F-3) and AGG (iShares Core U.S. Aggregate Bond ETF) are both funds - BFFAX is a Intermediate Core Bond fund managed by American Funds, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Over the past 5 years, BFFAX returned -0.10%/yr vs 0.07%/yr for AGG. Their correlation of 0.92 suggests significant overlap in exposure. BFFAX charges 0.20%/yr vs 0.03%/yr for AGG.
Performance
BFFAX vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, BFFAX achieves a -0.20% return, which is significantly lower than AGG's 0.47% return.
BFFAX
- 1D
- -0.36%
- 1M
- 0.56%
- YTD
- -0.20%
- 6M
- 0.26%
- 1Y
- 4.00%
- 3Y*
- 3.95%
- 5Y*
- -0.10%
- 10Y*
- —
AGG
- 1D
- 0.08%
- 1M
- 0.61%
- YTD
- 0.47%
- 6M
- 0.55%
- 1Y
- 4.33%
- 3Y*
- 3.96%
- 5Y*
- 0.07%
- 10Y*
- 1.54%
BFFAX vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | -0.20% | 7.54% | 1.54% | 4.39% | -13.00% | -0.97% | 11.12% | 8.17% | 0.22% | 3.07% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.47% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.33% |
Correlation
The correlation between BFFAX and AGG is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Feb 1, 2017 | 0.92 |
The correlation between BFFAX and AGG has been stable across timeframes, ranging from 0.91 to 0.95 - a consistent structural relationship.
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Return for Risk
BFFAX vs. AGG — Risk / Return Rank
BFFAX
AGG
BFFAX vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds The Bond Fund of America Class F-3 (BFFAX) 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.
| BFFAX | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.05 | ||
| Sortino ratioReturn per unit of downside risk | -0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.20 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.40 | 1.57 | -0.18 |
| Martin ratioReturn relative to average drawdown | 3.90 | 4.54 | -0.63 |
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Drawdowns
BFFAX vs. AGG - Drawdown Comparison
The maximum BFFAX drawdown since its inception was -17.74%, roughly equal to the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for BFFAX and AGG.
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Drawdown Indicators
| BFFAX | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.74% | -18.43% | +0.69% |
Max Drawdown (1Y)Largest decline over 1 year | -3.08% | -2.76% | -0.32% |
Max Drawdown (3Y)Largest decline over 3 years | -6.10% | -6.11% | +0.01% |
Max Drawdown (5Y)Largest decline over 5 years | -17.74% | -17.82% | +0.08% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.43% | — |
Current DrawdownCurrent decline from peak | -2.00% | -1.93% | -0.07% |
Average DrawdownAverage peak-to-trough decline | -4.67% | -2.71% | -1.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.10% | 0.96% | +0.14% |
Volatility
BFFAX vs. AGG - Volatility Comparison
American Funds The Bond Fund of America Class F-3 (BFFAX) has a higher volatility of 1.20% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.10%. This indicates that BFFAX'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
| BFFAX | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 1.10% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 2.93% | 2.83% | +0.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.93% | 3.81% | +0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.97% | 6.10% | -0.13% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.99% | 5.41% | -0.42% |
BFFAX vs. AGG - Expense Ratio Comparison
BFFAX has a 0.20% 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
BFFAX vs. AGG - Dividend Comparison
BFFAX's dividend yield for the trailing twelve months is around 4.52%, more than AGG's 3.98% 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% |
BFFAX American Funds The Bond Fund of America Class F-3 | 4.52% | 4.48% | 4.67% | 3.28% | 2.46% | 1.98% | 5.38% | 3.80% | 2.72% | 2.01% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.91, BFFAX and AGG 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.
BFFAX has higher volatility (1.20%) compared to AGG (1.10%). In terms of maximum drawdown, BFFAX dropped -17.74% vs AGG's -18.43%.
AGG currently has the higher Sharpe Ratio (1.14 vs 1.10), 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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