ISTB vs. AGG
Compare and contrast key facts about iShares Core 1-5 Year USD Bond ETF (ISTB) and iShares Core U.S. Aggregate Bond ETF (AGG).
ISTB and AGG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ISTB is a passively managed fund by iShares that tracks the performance of the Barclays U.S. Government/Credit 1-5 Year Bond Index. It was launched on Oct 18, 2012. AGG is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Sep 22, 2003. Both ISTB and AGG are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ISTB or AGG.
Key characteristics
| ISTB | AGG | |
|---|---|---|
| YTD Return | 3.85% | 1.81% |
| 1Y Return | 6.32% | 6.82% |
| 3Y Return (Ann) | 0.95% | -2.19% |
| 5Y Return (Ann) | 1.48% | -0.18% |
| 10Y Return (Ann) | 1.86% | 1.45% |
| Sharpe Ratio | 2.60 | 1.37 |
| Sortino Ratio | 4.10 | 2.02 |
| Omega Ratio | 1.52 | 1.24 |
| Calmar Ratio | 1.57 | 0.55 |
| Martin Ratio | 14.09 | 4.85 |
| Ulcer Index | 0.50% | 1.68% |
| Daily Std Dev | 2.71% | 5.95% |
| Max Drawdown | -9.34% | -18.43% |
| Current Drawdown | -1.20% | -8.49% |
Correlation
The correlation between ISTB and AGG is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
ISTB vs. AGG - Performance Comparison
In the year-to-date period, ISTB achieves a 3.85% return, which is significantly higher than AGG's 1.81% return. Over the past 10 years, ISTB has outperformed AGG with an annualized return of 1.86%, while AGG has yielded a comparatively lower 1.45% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ISTB vs. AGG - Expense Ratio Comparison
ISTB has a 0.06% expense ratio, which is higher than AGG's 0.05% 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%.
Risk-Adjusted Performance
ISTB vs. AGG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) 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.
Dividends
ISTB vs. AGG - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 3.74%, less than AGG's 3.96% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 3.74% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.07% | 1.90% | 1.58% | 1.07% | 0.60% |
AGG iShares Core U.S. Aggregate Bond ETF | 3.96% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.96% | 2.32% | 2.39% | 2.45% | 2.40% | 2.32% |
Drawdowns
ISTB vs. AGG - Drawdown Comparison
The maximum ISTB drawdown since its inception was -9.34%, smaller than the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for ISTB and AGG. For additional features, visit the drawdowns tool.
Volatility
ISTB vs. AGG - Volatility Comparison
The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.68%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.71%. This indicates that ISTB experiences smaller price fluctuations and is considered to be less risky than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.