ISTB vs. AGG

Last updated Apr 2, 2026

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 BBG US Universal 1-5 Year Index (USD). It was launched on Oct 18, 2012. AGG is a passively managed fund by iShares that tracks the performance of the Bloomberg 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.

Performance

ISTB vs. AGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core 1-5 Year USD Bond ETF (ISTB) and iShares Core U.S. Aggregate Bond ETF (AGG). The values are adjusted to include any dividend payments, if applicable.

ISTB vs. AGG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISTB iShares Core 1-5 Year USD Bond ETF	0.13%	6.36%	4.37%	5.56%	-6.08%	-0.71%	4.75%	5.61%	1.02%	1.72%
AGG iShares Core U.S. Aggregate Bond ETF	0.09%	7.19%	1.31%	5.65%	-13.02%	-1.77%	7.48%	8.46%	0.09%	3.55%

Returns By Period

In the year-to-date period, ISTB achieves a 0.13% return, which is significantly higher than AGG's 0.09% return. Over the past 10 years, ISTB has outperformed AGG with an annualized return of 2.32%, while AGG has yielded a comparatively lower 1.66% annualized return.

ISTB

• 1D: 0.03%
• 1M: -0.61%
• YTD: 0.13%
• 6M: 1.16%
• 1Y: 4.38%
• 3Y*: 4.78%
• 5Y*: 1.88%
• 10Y*: 2.32%

AGG

• 1D: 0.07%
• 1M: -1.33%
• YTD: 0.09%
• 6M: 0.78%
• 1Y: 4.05%
• 3Y*: 3.62%
• 5Y*: 0.24%
• 10Y*: 1.66%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ISTB vs. AGG - Expense Ratio Comparison

ISTB has a 0.06% 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%.

ISTB

iShares Core 1-5 Year USD Bond ETF

AGG

iShares Core U.S. Aggregate Bond ETF

Return for Risk

ISTB vs. AGG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ISTB

ISTB Risk / Return Rank: 94
ISTB Sharpe Ratio Rank: 93
ISTB Sortino Ratio Rank: 96
ISTB Omega Ratio Rank: 94
ISTB Calmar Ratio Rank: 93
ISTB Martin Ratio Rank: 93

AGG

AGG Risk / Return Rank: 50
AGG Sharpe Ratio Rank: 49
AGG Sortino Ratio Rank: 46
AGG Omega Ratio Rank: 40
AGG Calmar Ratio Rank: 67
AGG Martin Ratio Rank: 49

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ISTB vs. AGG - Risk-Adjusted Trends 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.

	ISTB	AGG	Difference
Sharpe ratio Return per unit of total volatility	2.27	0.93	+1.34
Sortino ratio Return per unit of downside risk	3.47	1.32	+2.15
Omega ratio Gain probability vs. loss probability	1.45	1.17	+0.29
Calmar ratio Return relative to maximum drawdown	3.60	1.76	+1.84
Martin ratio Return relative to average drawdown	14.26	4.89	+9.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISTB vs. AGG - Sharpe Ratio Comparison

The current ISTB Sharpe Ratio is 2.27, which is higher than the AGG Sharpe Ratio of 0.93. The chart below compares the historical Sharpe Ratios of ISTB and AGG, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	ISTB	AGG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.27	0.93	+1.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.04	+0.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.93	0.31	+0.62
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.60	+0.24

Correlation

The correlation between ISTB and AGG is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

ISTB vs. AGG - Dividend Comparison

ISTB's dividend yield for the trailing twelve months is around 4.21%, more than AGG's 3.95% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISTB iShares Core 1-5 Year USD Bond ETF	4.21%	4.12%	3.83%	2.97%	2.01%	1.69%	2.20%	2.75%	2.57%	2.06%	1.90%	1.58%
AGG iShares Core U.S. Aggregate Bond ETF	3.95%	3.89%	3.74%	3.13%	2.39%	1.77%	2.14%	2.70%	2.72%	2.32%	2.39%	2.45%

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.

Drawdown Indicators

	ISTB	AGG	Difference
Max Drawdown Largest peak-to-trough decline	-9.34%	-18.43%	+9.09%
Max Drawdown (1Y) Largest decline over 1 year	-1.26%	-2.52%	+1.26%
Max Drawdown (5Y) Largest decline over 5 years	-9.34%	-17.82%	+8.48%
Max Drawdown (10Y) Largest decline over 10 years	-9.34%	-18.43%	+9.09%
Current Drawdown Current decline from peak	-0.78%	-2.30%	+1.52%
Average Drawdown Average peak-to-trough decline	-1.23%	-2.71%	+1.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.32%	0.91%	-0.59%

Volatility

ISTB vs. AGG - Volatility Comparison

The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.78%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.67%. 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.

Volatility by Period

	ISTB	AGG	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	1.67%	-0.89%
Volatility (6M) Calculated over the trailing 6-month period	1.18%	2.55%	-1.37%
Volatility (1Y) Calculated over the trailing 1-year period	1.94%	4.37%	-2.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.78%	6.07%	-3.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.50%	5.39%	-2.89%