DFCF vs. AGG

Last updated Jun 4, 2026

DFCF (Dimensional Core Fixed Income ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - DFCF is a Intermediate Core Bond fund actively managed by Dimensional, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. DFCF is actively managed, while AGG is passively managed. Over the past 3 years, DFCF returned 4.79%/yr vs 3.95%/yr for AGG. With a 0.96 correlation, they move nearly in lockstep. DFCF charges 0.17%/yr vs 0.03%/yr for AGG.

Performance

DFCF vs. AGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Core Fixed Income ETF (DFCF) 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, DFCF achieves a 0.37% return, which is significantly higher than AGG's 0.25% return.

DFCF

• 1D: -0.19%
• 1M: 0.32%
• YTD: 0.37%
• 6M: 0.21%
• 1Y: 5.78%
• 3Y*: 4.79%
• 5Y*: —
• 10Y*: —

AGG

• 1D: -0.21%
• 1M: 0.24%
• YTD: 0.25%
• 6M: 0.09%
• 1Y: 5.14%
• 3Y*: 3.95%
• 5Y*: 0.10%
• 10Y*: 1.57%

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

DFCF vs. AGG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFCF Dimensional Core Fixed Income ETF	0.37%	7.89%	1.86%	6.94%	-14.48%	0.23%
AGG iShares Core U.S. Aggregate Bond ETF	0.25%	7.19%	1.31%	5.65%	-13.02%	0.44%

Correlation

The correlation between DFCF 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	0.97
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.96

The correlation between DFCF and AGG has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

Return for Risk

DFCF vs. AGG — Risk / Return Rank

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

DFCF

DFCF Risk / Return Rank: 40
DFCF Sharpe Ratio Rank: 40
DFCF Sortino Ratio Rank: 41
DFCF Omega Ratio Rank: 38
DFCF Calmar Ratio Rank: 42
DFCF Martin Ratio Rank: 40

AGG

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

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.

DFCF vs. AGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Core Fixed Income ETF (DFCF) 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.

	DFCF	AGG	Difference
Sharpe ratio Return per unit of total volatility	1.46	1.34	+0.11
Sortino ratio Return per unit of downside risk	2.14	2.00	+0.14
Omega ratio Gain probability vs. loss probability	1.25	1.24	+0.02
Calmar ratio Return relative to maximum drawdown	2.08	1.87	+0.21
Martin ratio Return relative to average drawdown	6.32	5.73	+0.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFCF vs. AGG - Sharpe Ratio Comparison

The current DFCF Sharpe Ratio is 1.46, which is comparable to the AGG Sharpe Ratio of 1.34. The chart below compares the historical Sharpe Ratios of DFCF 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

	DFCF	AGG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.46	1.34	+0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.02	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.29	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.04	0.59	-0.56

Drawdowns

DFCF vs. AGG - Drawdown Comparison

The maximum DFCF drawdown since its inception was -19.56%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for DFCF and AGG.

Drawdown Indicators

	DFCF	AGG	Difference
Max Drawdown Largest peak-to-trough decline	-19.56%	-18.43%	-1.13%
Max Drawdown (1Y) Largest decline over 1 year	-2.79%	-2.76%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-5.05%	-6.11%	+1.06%
Max Drawdown (5Y) Largest decline over 5 years	—	-17.82%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.43%	—
Current Drawdown Current decline from peak	-1.46%	-2.14%	+0.68%
Average Drawdown Average peak-to-trough decline	-8.04%	-2.71%	-5.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	0.90%	+0.02%

Volatility

DFCF vs. AGG - Volatility Comparison

Dimensional Core Fixed Income ETF (DFCF) and iShares Core U.S. Aggregate Bond ETF (AGG) have volatilities of 1.36% and 1.30%, 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

	DFCF	AGG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.36%	1.30%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	2.90%	2.74%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	3.99%	3.85%	+0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.46%	6.09%	+0.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.46%	5.40%	+1.06%

DFCF vs. AGG - Expense Ratio Comparison

DFCF has a 0.17% 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

DFCF vs. AGG - Dividend Comparison

DFCF's dividend yield for the trailing twelve months is around 4.31%, more than AGG's 3.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AGG iShares Core U.S. Aggregate Bond ETF	3.99%	3.89%	3.74%	3.13%	2.39%	1.77%	2.14%	2.70%	2.72%	2.32%	2.39%	2.45%
DFCF Dimensional Core Fixed Income ETF	4.31%	4.48%	4.61%	4.51%	3.27%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFCF and AGG in my portfolio?

With a correlation of 0.98, DFCF 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, DFCF or AGG?

DFCF has higher volatility (1.36%) compared to AGG (1.30%). In terms of maximum drawdown, DFCF dropped -19.56% vs AGG's -18.43%.

Which ETF is better, DFCF or AGG?

On 3-year performance, DFCF leads with 4.79% vs 3.95% for AGG. On fees, AGG is cheaper at 0.03% per year. 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, DFCF or AGG?

Over the 3-year period, DFCF has performed better with a 4.79% return vs 3.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFCF or AGG?

AGG is cheaper with a 0.03% expense ratio, compared with 0.17% for DFCF.

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

DFCF has the higher dividend yield at 4.31%, compared with 3.99% for AGG.

What is the main difference between DFCF and AGG?

DFCF is categorized as Intermediate Core Bond, while AGG is Total Bond Market. They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.17% for DFCF and 0.03% for AGG.

Which has better risk-adjusted returns?

DFCF currently has the higher Sharpe Ratio (1.46 vs 1.34), 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.