VO vs. AGG
VO (Vanguard Mid-Cap ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap 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, VO returned 11.77%/yr vs 1.57%/yr for AGG. At a correlation of -0.08, they often move in opposite directions. Both charge a 0.03% expense ratio.
Performance
VO vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, VO achieves a 10.43% return, which is significantly higher than AGG's 0.52% return. Over the past 10 years, VO has outperformed AGG with an annualized return of 11.77%, while AGG has yielded a comparatively lower 1.57% annualized return.
VO
- 1D
- 0.97%
- 1M
- 2.97%
- YTD
- 10.43%
- 6M
- 9.31%
- 1Y
- 19.60%
- 3Y*
- 15.74%
- 5Y*
- 7.79%
- 10Y*
- 11.77%
AGG
- 1D
- -0.12%
- 1M
- 0.46%
- YTD
- 0.52%
- 6M
- 0.93%
- 1Y
- 4.87%
- 3Y*
- 4.19%
- 5Y*
- 0.06%
- 10Y*
- 1.57%
VO vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 10.43% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.10% | 30.98% | -9.24% | 19.28% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.52% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between VO and AGG is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.10 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | -0.08 |
The correlation between VO and AGG shifts across timeframes, from -0.08 (all time) to 0.38 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VO vs. AGG — Risk / Return Rank
VO
AGG
VO vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.
| VO | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.21 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.23 | 1.63 | +0.60 |
| Martin ratioReturn relative to average drawdown | 8.44 | 4.82 | +3.62 |
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Drawdowns
VO vs. AGG - Drawdown Comparison
The maximum VO drawdown since its inception was -58.87%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for VO and AGG.
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Drawdown Indicators
| VO | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.87% | -18.43% | -40.44% |
Max Drawdown (1Y)Largest decline over 1 year | -8.17% | -2.76% | -5.41% |
Max Drawdown (3Y)Largest decline over 3 years | -19.02% | -6.11% | -12.91% |
Max Drawdown (5Y)Largest decline over 5 years | -27.57% | -17.82% | -9.75% |
Max Drawdown (10Y)Largest decline over 10 years | -39.37% | -18.43% | -20.94% |
Current DrawdownCurrent decline from peak | -0.45% | -1.88% | +1.43% |
Average DrawdownAverage peak-to-trough decline | -7.85% | -2.71% | -5.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.16% | 0.94% | +1.22% |
Volatility
VO vs. AGG - Volatility Comparison
Vanguard Mid-Cap ETF (VO) has a higher volatility of 4.31% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.37%. This indicates that VO'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
| VO | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.31% | 1.37% | +2.94% |
Volatility (6M)Calculated over the trailing 6-month period | 9.71% | 2.81% | +6.90% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.74% | 3.82% | +8.92% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.65% | 6.09% | +11.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.96% | 5.41% | +13.55% |
VO vs. AGG - Expense Ratio Comparison
Both VO and AGG have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VO vs. AGG - Dividend Comparison
VO's dividend yield for the trailing twelve months is around 1.36%, 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% |
VO Vanguard Mid-Cap ETF | 1.36% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
Frequently Asked Questions
VO and AGG have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VO has higher volatility (4.31%) compared to AGG (1.37%). In terms of maximum drawdown, VO dropped -58.87% vs AGG's -18.43%.
On 10-year performance, VO leads with 11.77% vs 1.57% for AGG. Both ETFs have the same 0.03% expense ratio. On volatility, AGG has been the lower-risk option at 1.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VO has performed better with a 11.77% return vs 1.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VO and AGG have the same expense ratio: 0.03% per year.
AGG has the higher dividend yield at 3.98%, compared with 1.36% for VO.
VO is categorized as Mid Cap Blend Equities, while AGG is Total Bond Market. VO tracks CRSP US Mid Cap Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. They also come from different issuers: Vanguard and iShares.
VO currently has the higher Sharpe Ratio (1.43 vs 1.19), 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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