IAGG vs. BNDX
IAGG (iShares Core International Aggregate Bond ETF) and BNDX (Vanguard Total International Bond ETF) are both Global Bonds funds - IAGG tracks the Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index while BNDX tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). Both are passively managed. Over the past 10 years, IAGG returned 2.22%/yr vs 1.74%/yr for BNDX. Their correlation of 0.81 suggests significant overlap in exposure. Both charge a 0.07% expense ratio.
Performance
IAGG vs. BNDX - Performance Comparison
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Returns By Period
In the year-to-date period, IAGG achieves a 1.64% return, which is significantly higher than BNDX's 1.21% return. Over the past 10 years, IAGG has outperformed BNDX with an annualized return of 2.22%, while BNDX has yielded a comparatively lower 1.74% annualized return.
IAGG
- 1D
- 0.20%
- 1M
- 1.12%
- YTD
- 1.64%
- 6M
- 1.76%
- 1Y
- 2.69%
- 3Y*
- 4.92%
- 5Y*
- 1.18%
- 10Y*
- 2.22%
BNDX
- 1D
- 0.08%
- 1M
- 1.14%
- YTD
- 1.21%
- 6M
- 1.40%
- 1Y
- 2.25%
- 3Y*
- 4.33%
- 5Y*
- 0.43%
- 10Y*
- 1.74%
IAGG vs. BNDX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IAGG iShares Core International Aggregate Bond ETF | 1.64% | 3.26% | 4.51% | 8.49% | -10.86% | -1.87% | 4.63% | 7.99% | 3.38% | 2.09% |
BNDX Vanguard Total International Bond ETF | 1.21% | 2.86% | 3.57% | 8.77% | -12.76% | -2.29% | 4.65% | 7.87% | 2.81% | 2.40% |
Correlation
The correlation between IAGG and BNDX is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.91 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Nov 12, 2015 | 0.81 |
The correlation between IAGG and BNDX shifts across timeframes, from 0.81 (all time) to 0.92 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
IAGG vs. BNDX — Risk / Return Rank
IAGG
BNDX
IAGG vs. BNDX - 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 International Bond ETF (BNDX). 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 | BNDX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.29 | ||
| Sortino ratioReturn per unit of downside risk | +0.45 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.12 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.17 | 0.77 | +0.40 |
| Martin ratioReturn relative to average drawdown | 3.42 | 2.13 | +1.29 |
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Drawdowns
IAGG vs. BNDX - Drawdown Comparison
The maximum IAGG drawdown since its inception was -13.88%, smaller than the maximum BNDX drawdown of -16.23%. Use the drawdown chart below to compare losses from any high point for IAGG and BNDX.
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Drawdown Indicators
| IAGG | BNDX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.88% | -16.23% | +2.35% |
Max Drawdown (1Y)Largest decline over 1 year | -2.32% | -2.93% | +0.61% |
Max Drawdown (3Y)Largest decline over 3 years | -2.32% | -2.93% | +0.61% |
Max Drawdown (5Y)Largest decline over 5 years | -13.57% | -15.86% | +2.29% |
Max Drawdown (10Y)Largest decline over 10 years | -13.88% | -16.23% | +2.35% |
Current DrawdownCurrent decline from peak | -0.27% | -0.83% | +0.56% |
Average DrawdownAverage peak-to-trough decline | -2.84% | -3.10% | +0.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.79% | 1.06% | -0.27% |
Volatility
IAGG vs. BNDX - Volatility Comparison
The current volatility for iShares Core International Aggregate Bond ETF (IAGG) is 0.89%, while Vanguard Total International Bond ETF (BNDX) has a volatility of 1.13%. This indicates that IAGG experiences smaller price fluctuations and is considered to be less risky than BNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IAGG | BNDX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | 1.13% | -0.24% |
Volatility (6M)Calculated over the trailing 6-month period | 2.46% | 2.96% | -0.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.86% | 3.45% | -0.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.51% | 4.89% | -0.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.05% | 4.09% | -0.04% |
IAGG vs. BNDX - Expense Ratio Comparison
Both IAGG and BNDX have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
IAGG vs. BNDX - Dividend Comparison
IAGG's dividend yield for the trailing twelve months is around 3.63%, less than BNDX's 4.46% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BNDX Vanguard Total International Bond ETF | 4.46% | 4.39% | 4.18% | 4.42% | 1.51% | 3.74% | 1.11% | 3.40% | 3.01% | 2.23% | 1.89% | 1.63% |
IAGG iShares Core International Aggregate Bond ETF | 3.63% | 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
With a correlation of 0.91, IAGG and BNDX 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.
BNDX has higher volatility (1.13%) compared to IAGG (0.89%). In terms of maximum drawdown, IAGG dropped -13.88% vs BNDX's -16.23%.
On 10-year performance, IAGG leads with 2.22% vs 1.74% for BNDX. Both ETFs have the same 0.07% expense ratio. On volatility, IAGG has been the lower-risk option at 0.89%. 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 2.22% return vs 1.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IAGG and BNDX have the same expense ratio: 0.07% per year.
BNDX has the higher dividend yield at 4.46%, compared with 3.63% for IAGG.
IAGG tracks Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index, while BNDX tracks Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). They also come from different issuers: iShares and Vanguard.
IAGG currently has the higher Sharpe Ratio (0.95 vs 0.66), 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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