IAGG vs. BND
IAGG (iShares Core International Aggregate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - IAGG is a Global Bonds fund tracking the Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, IAGG returned 2.19%/yr vs 1.56%/yr for BND. A 0.72 correlation means they provide meaningful diversification when combined. IAGG charges 0.07%/yr vs 0.03%/yr for BND.
Performance
IAGG vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, IAGG achieves a 1.50% return, which is significantly higher than BND's 0.49% return. Over the past 10 years, IAGG has outperformed BND with an annualized return of 2.19%, while BND has yielded a comparatively lower 1.56% annualized return.
IAGG
- 1D
- 0.02%
- 1M
- 0.84%
- YTD
- 1.50%
- 6M
- 1.50%
- 1Y
- 2.49%
- 3Y*
- 4.72%
- 5Y*
- 1.19%
- 10Y*
- 2.19%
BND
- 1D
- 0.11%
- 1M
- 0.64%
- YTD
- 0.49%
- 6M
- 0.57%
- 1Y
- 4.23%
- 3Y*
- 3.96%
- 5Y*
- 0.05%
- 10Y*
- 1.56%
IAGG vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IAGG iShares Core International Aggregate Bond ETF | 1.50% | 3.26% | 4.51% | 8.49% | -10.86% | -1.87% | 4.63% | 7.99% | 3.38% | 2.09% |
BND Vanguard Total Bond Market ETF | 0.49% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between IAGG and BND is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.81 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.81 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Nov 12, 2015 | 0.72 |
The correlation between IAGG and BND has been stable across timeframes, ranging from 0.72 to 0.81 - a consistent structural relationship.
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Return for Risk
IAGG vs. BND — Risk / Return Rank
IAGG
BND
IAGG vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core International Aggregate Bond ETF (IAGG) and Vanguard Total Bond Market ETF (BND). 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.
| IAGG | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.26 | ||
| Sortino ratioReturn per unit of downside risk | -0.40 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.20 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.08 | 1.59 | -0.51 |
| Martin ratioReturn relative to average drawdown | 3.16 | 4.52 | -1.36 |
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Drawdowns
IAGG vs. BND - Drawdown Comparison
The maximum IAGG drawdown since its inception was -13.88%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for IAGG and BND.
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Drawdown Indicators
| IAGG | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.88% | -18.58% | +4.70% |
Max Drawdown (1Y)Largest decline over 1 year | -2.32% | -2.68% | +0.36% |
Max Drawdown (3Y)Largest decline over 3 years | -2.32% | -5.92% | +3.60% |
Max Drawdown (5Y)Largest decline over 5 years | -13.57% | -17.91% | +4.34% |
Max Drawdown (10Y)Largest decline over 10 years | -13.88% | -18.58% | +4.70% |
Current DrawdownCurrent decline from peak | -0.41% | -2.15% | +1.74% |
Average DrawdownAverage peak-to-trough decline | -2.84% | -3.06% | +0.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.79% | 0.94% | -0.15% |
Volatility
IAGG vs. BND - Volatility Comparison
The current volatility for iShares Core International Aggregate Bond ETF (IAGG) is 0.74%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.08%. This indicates that IAGG experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IAGG | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.74% | 1.08% | -0.34% |
Volatility (6M)Calculated over the trailing 6-month period | 2.46% | 2.77% | -0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.86% | 3.74% | -0.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.51% | 6.03% | -1.52% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.05% | 5.53% | -1.48% |
IAGG vs. BND - Expense Ratio Comparison
IAGG has a 0.07% expense ratio, which is higher than BND'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
IAGG vs. BND - Dividend Comparison
IAGG's dividend yield for the trailing twelve months is around 3.64%, less than BND's 3.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
IAGG iShares Core International Aggregate Bond ETF | 3.64% | 3.08% | 4.28% | 3.55% | 2.27% | 1.16% | 1.95% | 2.82% | 3.02% | 1.74% | 1.56% | 0.13% |
Frequently Asked Questions
IAGG and BND have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.08%) compared to IAGG (0.74%). In terms of maximum drawdown, IAGG dropped -13.88% vs BND's -18.58%.
On 10-year performance, IAGG leads with 2.19% vs 1.56% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, IAGG has been the lower-risk option at 0.74%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IAGG has performed better with a 2.19% return vs 1.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.07% for IAGG.
BND has the higher dividend yield at 3.96%, compared with 3.64% for IAGG.
IAGG is categorized as Global Bonds, while BND is Total Bond Market. IAGG tracks Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.07% for IAGG and 0.03% for BND.
BND currently has the higher Sharpe Ratio (1.14 vs 0.87), 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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