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GOVT vs. AGG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

GOVT vs. AGG

Last updated Jun 3, 2026

GOVT (iShares U.S. Treasury Bond ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core 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, GOVT returned 0.88%/yr vs 1.59%/yr for AGG. Their correlation of 0.90 suggests significant overlap in exposure. GOVT charges 0.05%/yr vs 0.03%/yr for AGG.

Performance

GOVT vs. AGG - Performance Comparison

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

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Returns By Period

In the year-to-date period, GOVT achieves a 0.07% return, which is significantly lower than AGG's 0.47% return. Over the past 10 years, GOVT has underperformed AGG with an annualized return of 0.88%, while AGG has yielded a comparatively higher 1.59% annualized return.

GOVT

1D
0.04%
1M
-0.02%
YTD
0.07%
6M
-0.03%
1Y
3.96%
3Y*
2.89%
5Y*
-0.33%
10Y*
0.88%

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)

GOVT vs. AGG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
GOVT
iShares U.S. Treasury Bond ETF		0.07%3.77%2.95%4.17%-13.39%-1.11%7.28%7.36%0.26%2.19%
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 GOVT and AGG is 0.97 - 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

0.97

Correlation (3Y)
Calculated over the trailing 3-year period

0.97

Correlation (5Y)
Calculated over the trailing 5-year period

0.96

Correlation (10Y)
Calculated over the trailing 10-year period

0.92

Correlation (All Time)
Calculated using the full available price history since Feb 27, 2012

0.90

The correlation between GOVT and AGG has been stable across timeframes, ranging from 0.90 to 0.97 - a consistent structural relationship.

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iShares U.S. Treasury Bond ETF

iShares Core U.S. Aggregate Bond ETF

Often compared with GOVT:
GOVT vs. VGITGOVT vs. BNDGOVT vs. TLTGOVT vs. IEFGOVT vs. SHVGOVT vs. VTGGOVT vs. GOVZ
Often compared with AGG:
AGG vs. BNDAGG vs. TLTAGG vs. HYGAGG vs. FBNDAGG vs. PIMIXAGG vs. IUSBAGG vs. AGGH

Return for Risk

GOVT vs. AGG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
GOVT
GOVT Risk / Return Rank: 2828
Overall Rank
GOVT Sharpe Ratio Rank: 3030
Sharpe Ratio Rank
GOVT Sortino Ratio Rank: 3131
Sortino Ratio Rank
GOVT Omega Ratio Rank: 2828
Omega Ratio Rank
GOVT Calmar Ratio Rank: 2626
Calmar Ratio Rank
GOVT Martin Ratio Rank: 2626
Martin Ratio Rank
AGG
AGG Risk / Return Rank: 3737
Overall Rank
AGG Sharpe Ratio Rank: 3838
Sharpe Ratio Rank
AGG Sortino Ratio Rank: 4040
Sortino Ratio Rank
AGG Omega Ratio Rank: 3737
Omega Ratio Rank
AGG Calmar Ratio Rank: 3636
Calmar Ratio Rank
AGG Martin Ratio Rank: 3535
Martin Ratio Rank
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.

GOVT vs. AGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) 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.

GOVTAGGDifference

Sharpe ratio

Return per unit of total volatility

1.10

1.38

-0.28

Sortino ratio

Return per unit of downside risk

1.66

2.06

-0.40

Omega ratio

Gain probability vs. loss probability

1.19

1.25

-0.06

Calmar ratio

Return relative to maximum drawdown

1.27

1.81

-0.54

Martin ratio

Return relative to average drawdown

3.78

5.61

-1.83

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GOVT vs. AGG - Sharpe Ratio Comparison

The current GOVT Sharpe Ratio is 1.10, which is comparable to the AGG Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of GOVT 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.

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Sharpe Ratios by Period

GOVTAGGDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.10

1.38

-0.28

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.06

0.04

-0.09

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.17

0.30

-0.13

Sharpe Ratio (All Time)

Calculated using the full available price history

0.26

0.59

-0.33

Drawdowns

GOVT vs. AGG - Drawdown Comparison

The maximum GOVT drawdown since its inception was -19.07%, roughly equal to the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for GOVT and AGG.

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Drawdown Indicators

GOVTAGGDifference

Max Drawdown

Largest peak-to-trough decline

-19.07%

-18.43%

-0.64%

Max Drawdown (1Y)

Largest decline over 1 year

-2.85%

-2.76%

-0.09%

Max Drawdown (3Y)

Largest decline over 3 years

-5.43%

-6.11%

+0.68%

Max Drawdown (5Y)

Largest decline over 5 years

-16.60%

-17.82%

+1.22%

Max Drawdown (10Y)

Largest decline over 10 years

-19.07%

-18.43%

-0.64%

Current Drawdown

Current decline from peak

-7.01%

-1.93%

-5.08%

Average Drawdown

Average peak-to-trough decline

-5.25%

-2.71%

-2.54%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.96%

0.89%

+0.07%

Volatility

GOVT vs. AGG - Volatility Comparison

The current volatility for iShares U.S. Treasury Bond ETF (GOVT) is 1.12%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.32%. This indicates that GOVT 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

GOVTAGGDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.12%

1.32%

-0.20%

Volatility (6M)

Calculated over the trailing 6-month period

2.54%

2.76%

-0.22%

Volatility (1Y)

Calculated over the trailing 1-year period

3.64%

3.85%

-0.21%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.04%

6.09%

-0.05%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.23%

5.41%

-0.18%

GOVT vs. AGG - Expense Ratio Comparison

GOVT 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

GOVT vs. AGG - Dividend Comparison

GOVT's dividend yield for the trailing twelve months is around 3.58%, less than AGG's 3.98% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
GOVT
iShares U.S. Treasury Bond ETF		3.58%3.49%3.14%2.65%1.77%0.96%2.17%1.98%1.97%1.57%1.40%1.25%

Frequently Asked Questions

With a correlation of 0.97, GOVT 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 (1.32%) compared to GOVT (1.12%). In terms of maximum drawdown, GOVT dropped -19.07% vs AGG's -18.43%.

On 10-year performance, AGG leads with 1.59% vs 0.88% for GOVT. On fees, AGG is cheaper at 0.03% per year. On volatility, GOVT has been the lower-risk option at 1.12%. 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 1.59% return vs 0.88%. 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 GOVT.

AGG has the higher dividend yield at 3.98%, compared with 3.58% for GOVT.

GOVT is categorized as Government Bonds, while AGG is Total Bond Market. GOVT tracks ICE U.S. Treasury Core Bond Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. Their fees differ too: 0.05% for GOVT and 0.03% for AGG.

AGG currently has the higher Sharpe Ratio (1.38 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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