IEF vs. AGG
IEF (iShares 7-10 Year Treasury Bond ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year 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, IEF returned 0.60%/yr vs 1.58%/yr for AGG. Their correlation of 0.88 suggests significant overlap in exposure. IEF charges 0.15%/yr vs 0.03%/yr for AGG.
Performance
IEF vs. AGG - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, IEF achieves a -0.30% return, which is significantly lower than AGG's 0.64% return. Over the past 10 years, IEF has underperformed AGG with an annualized return of 0.60%, while AGG has yielded a comparatively higher 1.58% annualized return.
IEF
- 1D
- 0.69%
- 1M
- 0.36%
- YTD
- -0.30%
- 6M
- -0.28%
- 1Y
- 4.02%
- 3Y*
- 2.67%
- 5Y*
- -1.21%
- 10Y*
- 0.60%
AGG
- 1D
- 0.58%
- 1M
- 0.59%
- YTD
- 0.64%
- 6M
- 0.74%
- 1Y
- 5.01%
- 3Y*
- 4.07%
- 5Y*
- 0.08%
- 10Y*
- 1.58%
IEF vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -0.30% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.64% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between IEF 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 | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Sep 26, 2003 | 0.88 |
The correlation between IEF and AGG has been stable across timeframes, ranging from 0.88 to 0.98 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
IEF vs. AGG — Risk / Return Rank
IEF
AGG
IEF vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) 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.
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.
| IEF | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.46 | ||
| Sortino ratioReturn per unit of downside risk | -0.66 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.23 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 0.99 | 1.82 | -0.83 |
| Martin ratioReturn relative to average drawdown | 2.80 | 5.38 | -2.59 |
Loading charts...
Drawdowns
IEF vs. AGG - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for IEF and AGG.
Loading charts...
Drawdown Indicators
| IEF | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -18.43% | -5.50% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -2.76% | -1.31% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -6.11% | -1.63% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -17.82% | -3.58% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -18.43% | -5.50% |
Current DrawdownCurrent decline from peak | -11.02% | -1.76% | -9.26% |
Average DrawdownAverage peak-to-trough decline | -5.35% | -2.71% | -2.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.44% | 0.93% | +0.51% |
Volatility
IEF vs. AGG - Volatility Comparison
iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.61% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.36%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| IEF | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.61% | 1.36% | +0.25% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 2.82% | +0.61% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.73% | 3.83% | +0.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 6.10% | +1.61% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 5.41% | +1.22% |
IEF vs. AGG - Expense Ratio Comparison
IEF has a 0.15% 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
IEF vs. AGG - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.89%, less than AGG's 3.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.97% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.89% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
Frequently Asked Questions
With a correlation of 0.97, IEF 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.
IEF has higher volatility (1.61%) compared to AGG (1.36%). In terms of maximum drawdown, IEF dropped -23.93% vs AGG's -18.43%.
On 10-year performance, AGG leads with 1.58% vs 0.60% for IEF. On fees, AGG is cheaper at 0.03% per year. On volatility, AGG has been the lower-risk option at 1.36%. 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 1.58% return vs 0.60%. 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 0.15% for IEF.
AGG has the higher dividend yield at 3.97%, compared with 3.89% for IEF.
IEF is categorized as Government Bonds, while AGG is Total Bond Market. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. Their fees differ too: 0.15% for IEF and 0.03% for AGG.
AGG currently has the higher Sharpe Ratio (1.32 vs 0.86), 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.
Find the right allocation for IEF and AGG
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer