IGOV vs. AGG
IGOV (iShares International Treasury Bond ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - IGOV is a International Government Bonds fund tracking the FTSE World Government Bond Index - Developed Markets Capped Select 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, IGOV returned -1.49%/yr vs 1.54%/yr for AGG. At a 0.46 correlation, their price movements are largely independent. IGOV charges 0.35%/yr vs 0.03%/yr for AGG.
Performance
IGOV vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, IGOV achieves a -1.80% return, which is significantly lower than AGG's 0.47% return. Over the past 10 years, IGOV has underperformed AGG with an annualized return of -1.49%, while AGG has yielded a comparatively higher 1.54% annualized return.
IGOV
- 1D
- -0.27%
- 1M
- -1.26%
- YTD
- -1.80%
- 6M
- -2.15%
- 1Y
- -2.13%
- 3Y*
- 1.73%
- 5Y*
- -4.43%
- 10Y*
- -1.49%
AGG
- 1D
- 0.08%
- 1M
- 0.61%
- YTD
- 0.47%
- 6M
- 0.55%
- 1Y
- 4.33%
- 3Y*
- 3.96%
- 5Y*
- 0.07%
- 10Y*
- 1.54%
IGOV vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IGOV iShares International Treasury Bond ETF | -1.80% | 9.96% | -6.50% | 5.57% | -22.07% | -9.25% | 10.88% | 3.76% | -2.60% | 11.38% |
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 IGOV and AGG is 0.70, 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 | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.69 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.70 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Jan 29, 2009 | 0.46 |
Over the past year, IGOV and AGG have become more correlated (0.70) than their long-term average of 0.46, meaning their price movements have been converging.
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Return for Risk
IGOV vs. AGG — Risk / Return Rank
IGOV
AGG
IGOV vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares International Treasury Bond ETF (IGOV) 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.
| IGOV | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.40 | ||
| Sortino ratioReturn per unit of downside risk | -2.02 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.20 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | -0.38 | 1.57 | -1.95 |
| Martin ratioReturn relative to average drawdown | -0.83 | 4.54 | -5.36 |
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Drawdowns
IGOV vs. AGG - Drawdown Comparison
The maximum IGOV drawdown since its inception was -35.88%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for IGOV and AGG.
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Drawdown Indicators
| IGOV | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.88% | -18.43% | -17.45% |
Max Drawdown (1Y)Largest decline over 1 year | -5.70% | -2.76% | -2.94% |
Max Drawdown (3Y)Largest decline over 3 years | -10.65% | -6.11% | -4.54% |
Max Drawdown (5Y)Largest decline over 5 years | -32.92% | -17.82% | -15.10% |
Max Drawdown (10Y)Largest decline over 10 years | -35.88% | -18.43% | -17.45% |
Current DrawdownCurrent decline from peak | -25.00% | -1.93% | -23.07% |
Average DrawdownAverage peak-to-trough decline | -11.05% | -2.71% | -8.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.58% | 0.96% | +1.62% |
Volatility
IGOV vs. AGG - Volatility Comparison
iShares International Treasury Bond ETF (IGOV) has a higher volatility of 2.29% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.10%. This indicates that IGOV'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.
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Volatility by Period
| IGOV | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.29% | 1.10% | +1.19% |
Volatility (6M)Calculated over the trailing 6-month period | 6.37% | 2.83% | +3.54% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.13% | 3.81% | +4.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.97% | 6.10% | +3.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.60% | 5.41% | +3.19% |
IGOV vs. AGG - Expense Ratio Comparison
IGOV has a 0.35% expense ratio, which is higher than AGG's 0.03% expense ratio.
Dividends
IGOV vs. AGG - Dividend Comparison
IGOV's dividend yield for the trailing twelve months is around 1.43%, less than AGG's 3.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IGOV iShares International Treasury Bond ETF | 1.43% | 1.41% | 0.59% | 0.00% | 0.11% | 0.39% | 0.00% | 0.24% | 0.31% | 0.19% | 0.69% | 0.12% |
Frequently Asked Questions
IGOV and AGG have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IGOV has higher volatility (2.29%) compared to AGG (1.10%). In terms of maximum drawdown, IGOV dropped -35.88% vs AGG's -18.43%.
On 10-year performance, AGG leads with 1.54% vs -1.49% for IGOV. On fees, AGG is cheaper at 0.03% per year. On volatility, AGG has been the lower-risk option at 1.10%. 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 1.54% return vs -1.49%. 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 0.35% for IGOV.
AGG has the higher dividend yield at 3.98%, compared with 1.43% for IGOV.
IGOV is categorized as International Government Bonds, while AGG is Total Bond Market. IGOV tracks FTSE World Government Bond Index - Developed Markets Capped Select Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. Their fees differ too: 0.35% for IGOV and 0.03% for AGG.
AGG currently has the higher Sharpe Ratio (1.14 vs -0.26), 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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