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TLT vs. AGG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TLT vs. AGG

Last updated Jun 6, 2026

TLT (iShares 20+ Year Treasury Bond ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ 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, TLT returned -1.63%/yr vs 1.54%/yr for AGG. Their correlation of 0.83 suggests significant overlap in exposure. TLT charges 0.15%/yr vs 0.03%/yr for AGG.

Performance

TLT vs. AGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) and iShares Core U.S. Aggregate Bond ETF (AGG). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, TLT achieves a -0.56% return, which is significantly lower than AGG's -0.08% return. Over the past 10 years, TLT has underperformed AGG with an annualized return of -1.63%, while AGG has yielded a comparatively higher 1.54% annualized return.

TLT

1D
-0.51%
1M
-0.80%
YTD
-0.56%
6M
-1.32%
1Y
2.88%
3Y*
-2.03%
5Y*
-6.37%
10Y*
-1.63%

AGG

1D
-0.50%
1M
-0.70%
YTD
-0.08%
6M
0.10%
1Y
4.43%
3Y*
3.80%
5Y*
0.03%
10Y*
1.54%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. AGG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
TLT
iShares 20+ Year Treasury Bond ETF		-0.56%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%
AGG
iShares Core U.S. Aggregate Bond ETF		-0.08%7.19%1.31%5.65%-13.02%-1.77%7.48%8.46%0.09%3.55%

Correlation

The correlation between TLT and AGG is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.92

Correlation (3Y)
Calculated over the trailing 3-year period

0.94

Correlation (5Y)
Calculated over the trailing 5-year period

0.92

Correlation (10Y)
Calculated over the trailing 10-year period

0.89

Correlation (All Time)
Calculated using the full available price history since Sep 29, 2003

0.83

The correlation between TLT and AGG shifts across timeframes, from 0.83 (all time) to 0.94 (3 years), reflecting how their relationship changes across market environments.

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iShares 20+ Year Treasury Bond ETF

iShares Core U.S. Aggregate Bond ETF

Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV
Often compared with AGG:
AGG vs. BNDAGG vs. HYGAGG vs. FBNDAGG vs. PIMIXAGG vs. IUSBAGG vs. AGGHAGG vs. IAGG

Return for Risk

TLT vs. AGG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TLT
TLT Risk / Return Rank: 1313
Overall Rank
TLT Sharpe Ratio Rank: 1414
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1313
Sortino Ratio Rank
TLT Omega Ratio Rank: 1212
Omega Ratio Rank
TLT Calmar Ratio Rank: 1414
Calmar Ratio Rank
TLT Martin Ratio Rank: 1414
Martin Ratio Rank
AGG
AGG Risk / Return Rank: 3333
Overall Rank
AGG Sharpe Ratio Rank: 3333
Sharpe Ratio Rank
AGG Sortino Ratio Rank: 3333
Sortino Ratio Rank
AGG Omega Ratio Rank: 3131
Omega Ratio Rank
AGG Calmar Ratio Rank: 3434
Calmar Ratio Rank
AGG Martin Ratio Rank: 3333
Martin Ratio Rank
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.

TLT vs. AGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.

TLTAGGDifference
Sharpe ratioReturn per unit of total volatility
0.30
1.16

-0.86

Sortino ratioReturn per unit of downside risk
0.50
1.71

-1.21

Omega ratioGain probability vs. loss probability

1.06

1.20

-0.15

Calmar ratioReturn relative to maximum drawdown

0.38

1.61

-1.23

Martin ratioReturn relative to average drawdown

0.94

4.89

-3.95

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLT vs. AGG - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is 0.30, which is lower than the AGG Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of TLT and AGG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

TLTAGGDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.30

1.16

-0.86

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.40

0.01

-0.41

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.11

0.29

-0.40

Sharpe Ratio (All Time)

Calculated using the full available price history

0.25

0.59

-0.34

Drawdowns

TLT vs. AGG - Drawdown Comparison

The maximum TLT drawdown since its inception was -48.35%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for TLT and AGG.

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Drawdown Indicators

TLTAGGDifference

Max Drawdown

Largest peak-to-trough decline

-48.35%

-18.43%

-29.92%

Max Drawdown (1Y)

Largest decline over 1 year

-7.58%

-2.76%

-4.82%

Max Drawdown (3Y)

Largest decline over 3 years

-19.18%

-6.11%

-13.07%

Max Drawdown (5Y)

Largest decline over 5 years

-43.70%

-17.82%

-25.88%

Max Drawdown (10Y)

Largest decline over 10 years

-48.35%

-18.43%

-29.92%

Current Drawdown

Current decline from peak

-40.61%

-2.47%

-38.14%

Average Drawdown

Average peak-to-trough decline

-13.82%

-2.71%

-11.11%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.07%

0.91%

+2.16%

Volatility

TLT vs. AGG - Volatility Comparison

iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.65% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.31%. This indicates that TLT'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

TLTAGGDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.65%

1.31%

+1.34%

Volatility (6M)

Calculated over the trailing 6-month period

6.51%

2.78%

+3.73%

Volatility (1Y)

Calculated over the trailing 1-year period

9.66%

3.84%

+5.82%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.85%

6.09%

+9.76%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.90%

5.41%

+9.49%

TLT vs. AGG - Expense Ratio Comparison

TLT 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

TLT vs. AGG - Dividend Comparison

TLT's dividend yield for the trailing twelve months is around 4.60%, more than AGG's 4.00% yield.

PositionTTM20252024202320222021202020192018201720162015
AGG
iShares Core U.S. Aggregate Bond ETF		4.00%3.89%3.74%3.13%2.39%1.77%2.14%2.70%2.72%2.32%2.39%2.45%
TLT
iShares 20+ Year Treasury Bond ETF		4.60%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%

Frequently Asked Questions

With a correlation of 0.92, TLT 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.

TLT has higher volatility (2.65%) compared to AGG (1.31%). In terms of maximum drawdown, TLT dropped -48.35% vs AGG's -18.43%.

On 10-year performance, AGG leads with 1.54% vs -1.63% for TLT. On fees, AGG is cheaper at 0.03% per year. On volatility, AGG has been the lower-risk option at 1.31%. 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 -1.63%. 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 TLT.

TLT has the higher dividend yield at 4.60%, compared with 4.00% for AGG.

TLT is categorized as Government Bonds, while AGG is Total Bond Market. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. Their fees differ too: 0.15% for TLT and 0.03% for AGG.

AGG currently has the higher Sharpe Ratio (1.16 vs 0.30), 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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