VFIIX vs. AGG
VFIIX (Vanguard GNMA Fund Investor Shares) and AGG (iShares Core U.S. Aggregate Bond ETF) are both Total Bond Market funds. Over the past 10 years, VFIIX returned 1.31%/yr vs 1.57%/yr for AGG. A 0.76 correlation means they provide meaningful diversification when combined. VFIIX charges 0.21%/yr vs 0.03%/yr for AGG.
Performance
VFIIX vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, VFIIX achieves a 0.79% return, which is significantly higher than AGG's 0.25% return. Over the past 10 years, VFIIX has underperformed AGG with an annualized return of 1.31%, while AGG has yielded a comparatively higher 1.57% annualized return.
VFIIX
- 1D
- 0.00%
- 1M
- 0.31%
- YTD
- 0.79%
- 6M
- 0.89%
- 1Y
- 6.35%
- 3Y*
- 4.25%
- 5Y*
- 0.47%
- 10Y*
- 1.31%
AGG
- 1D
- -0.21%
- 1M
- 0.24%
- YTD
- 0.25%
- 6M
- 0.09%
- 1Y
- 5.14%
- 3Y*
- 3.95%
- 5Y*
- 0.10%
- 10Y*
- 1.57%
VFIIX vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFIIX Vanguard GNMA Fund Investor Shares | 0.79% | 7.73% | 1.07% | 5.17% | -10.81% | -1.24% | 3.73% | 5.84% | 0.89% | 1.88% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.25% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between VFIIX and AGG is 0.90, 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 | 0.90 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.92 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2003 | 0.76 |
The correlation between VFIIX and AGG shifts across timeframes, from 0.76 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VFIIX vs. AGG — Risk / Return Rank
VFIIX
AGG
VFIIX vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard GNMA Fund Investor Shares (VFIIX) 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.
| VFIIX | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.37 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.24 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.25 | 1.87 | +0.38 |
| Martin ratioReturn relative to average drawdown | 7.47 | 5.73 | +1.74 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VFIIX | AGG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.60 | 1.34 | +0.25 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.08 | 0.02 | +0.06 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.29 | -0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.64 | 0.59 | +0.05 |
Drawdowns
VFIIX vs. AGG - Drawdown Comparison
The maximum VFIIX drawdown since its inception was -25.80%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for VFIIX and AGG.
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Drawdown Indicators
| VFIIX | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -25.80% | -18.43% | -7.37% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -2.76% | -0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -6.97% | -6.11% | -0.86% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -17.82% | +2.03% |
Max Drawdown (10Y)Largest decline over 10 years | -16.20% | -18.43% | +2.23% |
Current DrawdownCurrent decline from peak | -1.38% | -2.14% | +0.76% |
Average DrawdownAverage peak-to-trough decline | -2.98% | -2.71% | -0.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.85% | 0.90% | -0.05% |
Volatility
VFIIX vs. AGG - Volatility Comparison
Vanguard GNMA Fund Investor Shares (VFIIX) has a higher volatility of 1.54% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.30%. This indicates that VFIIX'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
| VFIIX | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 1.30% | +0.24% |
Volatility (6M)Calculated over the trailing 6-month period | 2.94% | 2.74% | +0.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.01% | 3.85% | +0.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 6.09% | +0.12% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.70% | 5.40% | -0.70% |
VFIIX vs. AGG - Expense Ratio Comparison
VFIIX has a 0.21% 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
VFIIX vs. AGG - Dividend Comparison
VFIIX's dividend yield for the trailing twelve months is around 3.69%, less than AGG's 3.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.99% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
VFIIX Vanguard GNMA Fund Investor Shares | 3.69% | 3.62% | 3.58% | 3.23% | 2.34% | 0.63% | 1.87% | 2.76% | 2.90% | 2.64% | 3.01% | 2.84% |
Frequently Asked Questions
With a correlation of 0.90, VFIIX 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.
VFIIX has higher volatility (1.54%) compared to AGG (1.30%). In terms of maximum drawdown, VFIIX dropped -25.80% vs AGG's -18.43%.
VFIIX currently has the higher Sharpe Ratio (1.60 vs 1.34), 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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