BIV vs. AGG

Last updated Jun 3, 2026

BIV (Vanguard Intermediate-Term Bond Index ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - BIV is a Intermediate Core Bond fund tracking the Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond 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, BIV returned 1.94%/yr vs 1.59%/yr for AGG. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.

Performance

BIV vs. AGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Intermediate-Term Bond Index ETF (BIV) and iShares Core U.S. Aggregate Bond ETF (AGG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BIV achieves a -0.02% return, which is significantly lower than AGG's 0.47% return. Over the past 10 years, BIV has outperformed AGG with an annualized return of 1.94%, while AGG has yielded a comparatively lower 1.59% annualized return.

BIV

• 1D: 0.08%
• 1M: -0.04%
• YTD: -0.02%
• 6M: -0.05%
• 1Y: 5.02%
• 3Y*: 4.34%
• 5Y*: 0.39%
• 10Y*: 1.94%

AGG

• 1D: 0.03%
• 1M: 0.14%
• YTD: 0.47%
• 6M: 0.49%
• 1Y: 5.29%
• 3Y*: 4.02%
• 5Y*: 0.23%
• 10Y*: 1.59%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BIV vs. AGG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BIV Vanguard Intermediate-Term Bond Index ETF	-0.02%	8.52%	1.57%	6.07%	-13.21%	-2.40%	9.67%	10.34%	-0.19%	3.65%
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%	3.55%

Correlation

The correlation between BIV and AGG is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007	0.89

The correlation between BIV and AGG has been stable across timeframes, ranging from 0.89 to 0.98 - a consistent structural relationship.

Return for Risk

BIV vs. AGG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BIV

BIV Risk / Return Rank: 32
BIV Sharpe Ratio Rank: 34
BIV Sortino Ratio Rank: 35
BIV Omega Ratio Rank: 32
BIV Calmar Ratio Rank: 30
BIV Martin Ratio Rank: 31

AGG

AGG Risk / Return Rank: 37
AGG Sharpe Ratio Rank: 38
AGG Sortino Ratio Rank: 40
AGG Omega Ratio Rank: 37
AGG Calmar Ratio Rank: 36
AGG Martin Ratio Rank: 35

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.

BIV vs. AGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Bond Index ETF (BIV) 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.

	BIV	AGG	Difference
Sharpe ratio Return per unit of total volatility	1.24	1.38	-0.14
Sortino ratio Return per unit of downside risk	1.85	2.06	-0.21
Omega ratio Gain probability vs. loss probability	1.22	1.25	-0.03
Calmar ratio Return relative to maximum drawdown	1.49	1.81	-0.32
Martin ratio Return relative to average drawdown	4.56	5.61	-1.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BIV vs. AGG - Sharpe Ratio Comparison

The current BIV Sharpe Ratio is 1.24, which is comparable to the AGG Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of BIV and AGG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BIV	AGG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.24	1.38	-0.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.06	0.04	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	0.30	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	0.59	+0.05

Drawdowns

BIV vs. AGG - Drawdown Comparison

The maximum BIV drawdown since its inception was -18.95%, roughly equal to the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for BIV and AGG.

Drawdown Indicators

	BIV	AGG	Difference
Max Drawdown Largest peak-to-trough decline	-18.95%	-18.43%	-0.52%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	-2.76%	-0.42%
Max Drawdown (3Y) Largest decline over 3 years	-6.07%	-6.11%	+0.04%
Max Drawdown (5Y) Largest decline over 5 years	-18.74%	-17.82%	-0.92%
Max Drawdown (10Y) Largest decline over 10 years	-18.95%	-18.43%	-0.52%
Current Drawdown Current decline from peak	-1.82%	-1.93%	+0.11%
Average Drawdown Average peak-to-trough decline	-3.39%	-2.71%	-0.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.04%	0.89%	+0.15%

Volatility

BIV vs. AGG - Volatility Comparison

Vanguard Intermediate-Term Bond Index ETF (BIV) and iShares Core U.S. Aggregate Bond ETF (AGG) have volatilities of 1.38% and 1.32%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BIV	AGG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	1.32%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	2.92%	2.76%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	4.06%	3.85%	+0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.40%	6.09%	+0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.50%	5.41%	+0.09%

BIV vs. AGG - Expense Ratio Comparison

Both BIV and AGG have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

BIV vs. AGG - Dividend Comparison

BIV's dividend yield for the trailing twelve months is around 4.21%, 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%
BIV Vanguard Intermediate-Term Bond Index ETF	4.21%	4.01%	3.79%	3.09%	2.41%	3.42%	2.95%	2.75%	2.88%	2.69%	3.01%	3.02%

Frequently Asked Questions

Can I hold both BIV and AGG in my portfolio?

With a correlation of 0.98, BIV 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.

Which is riskier, BIV or AGG?

BIV has higher volatility (1.38%) compared to AGG (1.32%). In terms of maximum drawdown, BIV dropped -18.95% vs AGG's -18.43%.

Which ETF is better, BIV or AGG?

On 10-year performance, BIV leads with 1.94% vs 1.59% for AGG. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BIV or AGG?

Over the 10-year period, BIV has performed better with a 1.94% return vs 1.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BIV or AGG?

BIV and AGG have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, BIV or AGG?

BIV has the higher dividend yield at 4.21%, compared with 3.98% for AGG.

What is the main difference between BIV and AGG?

BIV is categorized as Intermediate Core Bond, while AGG is Total Bond Market. BIV tracks Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. They also come from different issuers: Vanguard and iShares.

Which has better risk-adjusted returns?

AGG currently has the higher Sharpe Ratio (1.38 vs 1.24), 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.