IAGG vs. BWZ
IAGG (iShares Core International Aggregate Bond ETF) and BWZ (SPDR Bloomberg Barclays Short Term International Treasury Bond 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 BWZ is a International Government Bonds fund tracking the Bloomberg Global Treasury (1-3 Y) Customized. Both are passively managed. Over the past 10 years, IAGG returned 2.02%/yr vs -0.50%/yr for BWZ. At a 0.25 correlation, their price movements are largely independent. IAGG charges 0.07%/yr vs 0.35%/yr for BWZ.
Performance
IAGG vs. BWZ - Performance Comparison
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Returns By Period
In the year-to-date period, IAGG achieves a 1.39% return, which is significantly higher than BWZ's -1.14% return. Over the past 10 years, IAGG has outperformed BWZ with an annualized return of 2.02%, while BWZ has yielded a comparatively lower -0.50% annualized return.
IAGG
- 1D
- 0.18%
- 1M
- 0.17%
- 6M
- 0.90%
- YTD
- 1.39%
- 1Y
- 2.72%
- 3Y*
- 5.00%
- 5Y*
- 1.05%
- 10Y*
- 2.02%
BWZ
- 1D
- 0.34%
- 1M
- -0.63%
- 6M
- -0.70%
- YTD
- -1.14%
- 1Y
- -1.30%
- 3Y*
- 2.03%
- 5Y*
- -1.70%
- 10Y*
- -0.50%
IAGG vs. BWZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IAGG iShares Core International Aggregate Bond ETF | 1.39% | 3.26% | 4.51% | 8.49% | -10.86% | -1.87% | 4.63% | 7.99% | 3.38% | 2.09% |
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF | -1.14% | 10.47% | -5.31% | 2.97% | -10.56% | -6.85% | 6.47% | 0.99% | -3.36% | 10.18% |
Correlation
The correlation between IAGG and BWZ is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.41 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.37 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Nov 12, 2015 | 0.25 |
Over the past year, IAGG and BWZ have become more correlated (0.49) than their long-term average of 0.25, meaning their price movements have been converging.
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Return for Risk
IAGG vs. BWZ — Risk / Return Rank
IAGG
BWZ
IAGG vs. BWZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core International Aggregate Bond ETF (IAGG) and SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ). 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 | BWZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.13 | ||
| Sortino ratioReturn per unit of downside risk | +1.62 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 0.97 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 1.12 | -0.30 | +1.42 |
| Martin ratioReturn relative to average drawdown | 3.30 | -0.58 | +3.88 |
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Drawdowns
IAGG vs. BWZ - Drawdown Comparison
The maximum IAGG drawdown since its inception was -13.88%, smaller than the maximum BWZ drawdown of -34.23%. Use the drawdown chart below to compare losses from any high point for IAGG and BWZ.
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Drawdown Indicators
| IAGG | BWZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.88% | -34.23% | +20.35% |
Max Drawdown (1Y)Largest decline over 1 year | -2.32% | -5.15% | +2.83% |
Max Drawdown (3Y)Largest decline over 3 years | -2.32% | -8.60% | +6.28% |
Max Drawdown (5Y)Largest decline over 5 years | -13.57% | -22.09% | +8.52% |
Max Drawdown (10Y)Largest decline over 10 years | -13.88% | -24.90% | +11.02% |
Current DrawdownCurrent decline from peak | -0.52% | -22.80% | +22.28% |
Average DrawdownAverage peak-to-trough decline | -2.82% | -16.14% | +13.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.79% | 2.59% | -1.80% |
Volatility
IAGG vs. BWZ - Volatility Comparison
The current volatility for iShares Core International Aggregate Bond ETF (IAGG) is 0.82%, while SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ) has a volatility of 1.52%. This indicates that IAGG experiences smaller price fluctuations and is considered to be less risky than BWZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IAGG | BWZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.82% | 1.52% | -0.70% |
Volatility (6M)Calculated over the trailing 6-month period | 2.48% | 5.05% | -2.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.88% | 6.79% | -3.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.51% | 7.60% | -3.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.04% | 6.94% | -2.90% |
IAGG vs. BWZ - Expense Ratio Comparison
IAGG has a 0.07% expense ratio, which is lower than BWZ's 0.35% expense ratio.
Dividends
IAGG vs. BWZ - Dividend Comparison
IAGG's dividend yield for the trailing twelve months is around 4.50%, more than BWZ's 2.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF | 2.11% | 2.05% | 2.47% | 1.63% | 0.44% | 0.60% | 0.13% | 0.43% | 1.10% | 0.40% | 0.13% | 0.06% |
IAGG iShares Core International Aggregate Bond ETF | 4.50% | 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 BWZ have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BWZ has higher volatility (1.52%) compared to IAGG (0.82%). In terms of maximum drawdown, IAGG dropped -13.88% vs BWZ's -34.23%.
On 10-year performance, IAGG leads with 2.02% vs -0.50% for BWZ. On fees, IAGG is cheaper at 0.07% per year. On volatility, IAGG has been the lower-risk option at 0.82%. 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 2.02% return vs -0.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IAGG is cheaper with a 0.07% expense ratio, compared with 0.35% for BWZ.
IAGG has the higher dividend yield at 4.50%, compared with 2.11% for BWZ.
IAGG is categorized as Global Bonds, while BWZ is International Government Bonds. IAGG tracks Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index, while BWZ tracks Bloomberg Global Treasury (1-3 Y) Customized. They also come from different issuers: iShares and State Street. Their fees differ too: 0.07% for IAGG and 0.35% for BWZ.
IAGG currently has the higher Sharpe Ratio (0.91 vs -0.22), 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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