BNDW vs. AGG
BNDW (Vanguard Total World Bond ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Both are passively managed. Over the past 5 years, BNDW returned 0.25%/yr vs 0.06%/yr for AGG. Their correlation of 0.93 suggests significant overlap in exposure. BNDW charges 0.05%/yr vs 0.03%/yr for AGG.
Performance
BNDW vs. AGG - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, BNDW achieves a 0.73% return, which is significantly higher than AGG's 0.39% return.
BNDW
- 1D
- -0.19%
- 1M
- 0.61%
- YTD
- 0.73%
- 6M
- 0.84%
- 1Y
- 3.26%
- 3Y*
- 4.05%
- 5Y*
- 0.25%
- 10Y*
- —
AGG
- 1D
- -0.27%
- 1M
- 0.53%
- YTD
- 0.39%
- 6M
- 0.47%
- 1Y
- 4.45%
- 3Y*
- 3.94%
- 5Y*
- 0.06%
- 10Y*
- 1.53%
BNDW vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
BNDW Vanguard Total World Bond ETF | 0.73% | 5.02% | 2.42% | 7.18% | -12.88% | -2.10% | 6.22% | 8.37% | 1.27% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.39% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 1.38% |
Correlation
The correlation between BNDW and AGG is 0.95 - 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Sep 6, 2018 | 0.93 |
The correlation between BNDW and AGG has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
BNDW vs. AGG — Risk / Return Rank
BNDW
AGG
BNDW vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Bond ETF (BNDW) 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.
| BNDW | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.20 | ||
| Sortino ratioReturn per unit of downside risk | -0.34 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.21 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.21 | 1.62 | -0.41 |
| Martin ratioReturn relative to average drawdown | 3.27 | 4.69 | -1.42 |
Loading charts...
Drawdowns
BNDW vs. AGG - Drawdown Comparison
The maximum BNDW drawdown since its inception was -17.22%, smaller than the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for BNDW and AGG.
Loading charts...
Drawdown Indicators
| BNDW | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.22% | -18.43% | +1.21% |
Max Drawdown (1Y)Largest decline over 1 year | -2.70% | -2.76% | +0.06% |
Max Drawdown (3Y)Largest decline over 3 years | -4.27% | -6.11% | +1.84% |
Max Drawdown (5Y)Largest decline over 5 years | -16.93% | -17.82% | +0.89% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.43% | — |
Current DrawdownCurrent decline from peak | -1.23% | -2.01% | +0.78% |
Average DrawdownAverage peak-to-trough decline | -4.95% | -2.71% | -2.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.00% | 0.95% | +0.05% |
Volatility
BNDW vs. AGG - Volatility Comparison
The current volatility for Vanguard Total World Bond ETF (BNDW) is 0.92%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.11%. This indicates that BNDW experiences smaller price fluctuations and is considered to be less risky than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| BNDW | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.92% | 1.11% | -0.19% |
Volatility (6M)Calculated over the trailing 6-month period | 2.70% | 2.84% | -0.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.36% | 3.82% | -0.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.22% | 6.10% | -0.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.89% | 5.41% | -0.52% |
BNDW vs. AGG - Expense Ratio Comparison
BNDW has a 0.05% 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
BNDW vs. AGG - Dividend Comparison
BNDW's dividend yield for the trailing twelve months is around 4.20%, 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% |
BNDW Vanguard Total World Bond ETF | 4.20% | 4.12% | 3.90% | 3.73% | 2.02% | 2.58% | 1.56% | 3.05% | 1.66% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.95, BNDW 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.
AGG has higher volatility (1.11%) compared to BNDW (0.92%). In terms of maximum drawdown, BNDW dropped -17.22% vs AGG's -18.43%.
On 5-year performance, BNDW leads with 0.25% vs 0.06% for AGG. On fees, AGG is cheaper at 0.03% per year. On volatility, BNDW has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, BNDW has performed better with a 0.25% return vs 0.06%. 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 0.05% for BNDW.
BNDW has the higher dividend yield at 4.20%, compared with 3.98% for AGG.
BNDW is categorized as Global Bonds, while AGG is Total Bond Market. BNDW tracks Bloomberg Global Aggregate Float Adjusted Composite Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for BNDW and 0.03% for AGG.
AGG currently has the higher Sharpe Ratio (1.17 vs 0.98), 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.
Find the right allocation for BNDW and AGG
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer