GBF vs. AGG
GBF (iShares Government/Credit Bond ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - GBF is a Intermediate Core Bond fund tracking the Bloomberg U.S. Government/Credit 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, GBF returned 1.45%/yr vs 1.54%/yr for AGG. Their correlation of 0.82 suggests significant overlap in exposure. GBF charges 0.20%/yr vs 0.03%/yr for AGG.
Performance
GBF vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, GBF achieves a -0.06% return, which is significantly higher than AGG's -0.08% return. Over the past 10 years, GBF has underperformed AGG with an annualized return of 1.45%, while AGG has yielded a comparatively higher 1.54% annualized return.
GBF
- 1D
- -0.41%
- 1M
- -0.34%
- YTD
- -0.06%
- 6M
- -0.10%
- 1Y
- 4.32%
- 3Y*
- 3.47%
- 5Y*
- -0.27%
- 10Y*
- 1.45%
AGG
- 1D
- -0.50%
- 1M
- -0.46%
- YTD
- -0.08%
- 6M
- 0.10%
- 1Y
- 4.97%
- 3Y*
- 3.80%
- 5Y*
- 0.03%
- 10Y*
- 1.54%
GBF vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GBF iShares Government/Credit Bond ETF | -0.06% | 6.41% | 0.99% | 5.79% | -13.85% | -2.30% | 8.76% | 9.47% | -0.52% | 4.10% |
AGG iShares Core U.S. Aggregate Bond ETF | -0.08% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between GBF 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 | 0.94 |
Correlation (All Time) Calculated using the full available price history since Jan 12, 2007 | 0.82 |
The correlation between GBF and AGG shifts across timeframes, from 0.82 (all time) to 0.98 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
GBF vs. AGG — Risk / Return Rank
GBF
AGG
GBF vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Government/Credit Bond ETF (GBF) 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.
| GBF | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.15 | ||
| Sortino ratioReturn per unit of downside risk | -0.20 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.20 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.39 | 1.61 | -0.22 |
| Martin ratioReturn relative to average drawdown | 4.07 | 4.89 | -0.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| GBF | AGG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.02 | 1.16 | -0.15 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.05 | 0.01 | -0.05 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.29 | -0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 0.59 | -0.01 |
Drawdowns
GBF vs. AGG - Drawdown Comparison
The maximum GBF drawdown since its inception was -19.67%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for GBF and AGG.
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Drawdown Indicators
| GBF | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.67% | -18.43% | -1.24% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -2.76% | +0.03% |
Max Drawdown (3Y)Largest decline over 3 years | -5.78% | -6.11% | +0.33% |
Max Drawdown (5Y)Largest decline over 5 years | -18.45% | -17.82% | -0.63% |
Max Drawdown (10Y)Largest decline over 10 years | -19.67% | -18.43% | -1.24% |
Current DrawdownCurrent decline from peak | -5.10% | -2.47% | -2.63% |
Average DrawdownAverage peak-to-trough decline | -3.67% | -2.71% | -0.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.93% | 0.91% | +0.02% |
Volatility
GBF vs. AGG - Volatility Comparison
The current volatility for iShares Government/Credit Bond ETF (GBF) is 1.20%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.31%. This indicates that GBF 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.
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Volatility by Period
| GBF | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 1.31% | -0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 2.66% | 2.78% | -0.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.73% | 3.84% | -0.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.93% | 6.09% | -0.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.28% | 5.41% | -0.13% |
GBF vs. AGG - Expense Ratio Comparison
GBF 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
GBF vs. AGG - Dividend Comparison
GBF's dividend yield for the trailing twelve months is around 3.80%, less than AGG's 4.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 4.00% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
GBF iShares Government/Credit Bond ETF | 3.80% | 3.81% | 3.94% | 3.03% | 2.13% | 1.22% | 1.64% | 2.64% | 2.59% | 2.31% | 2.09% | 2.04% |
Frequently Asked Questions
With a correlation of 0.98, GBF 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 (1.31%) compared to GBF (1.20%). In terms of maximum drawdown, GBF dropped -19.67% vs AGG's -18.43%.
On 10-year performance, AGG leads with 1.54% vs 1.45% for GBF. On fees, AGG is cheaper at 0.03% per year. On volatility, GBF has been the lower-risk option at 1.20%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, AGG has performed better with a 1.54% return vs 1.45%. 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 0.20% for GBF.
AGG has the higher dividend yield at 4.00%, compared with 3.80% for GBF.
GBF is categorized as Intermediate Core Bond, while AGG is Total Bond Market. GBF tracks Bloomberg U.S. Government/Credit Bond Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. Their fees differ too: 0.20% for GBF and 0.03% for AGG.
AGG currently has the higher Sharpe Ratio (1.16 vs 1.02), 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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