AGG vs BND
AGG vs BND
iShares Core US Aggregate Bond ETF vs Vanguard Total Bond Market ETF
Quick Verdict
AGG delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | AGG | BND | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $137.7B | $159.8B | |
| Dividend Yield | 3.97% | 3.94% | |
| Holdings | 13,269 | 17,528 | |
| YTD Return | -0.53% | -0.50% | |
| 1Y Return | +2.71% | +2.63% | |
| 3Y Return (annualized) | +3.96% | +3.92% | |
| 5Y Return (annualized) | -0.44% | -0.47% | |
| Volatility (annualized) | 4.4% | 4.6% | |
| Max Drawdown | -18.4% | -19.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Sep 22, 2003 | Apr 3, 2007 |
AGG vs BND Performance
iShares Core US Aggregate Bond ETF (AGG) is a ETF from iShares by BlackRock (US) and Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US). Over the past year AGG returned +2.71% while BND returned +2.63%. Year to date, AGG is down 0.53% versus a loss of 0.50% for BND.
Over three years, AGG compounded at +3.96% per year against +3.92% for BND; over five years the annualized figures are -0.44% and -0.47% respectively. Across the full 19-year window we track, AGG has the edge at +3.01% annualized vs +0.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 4.6% compared with 4.4% for AGG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -18.4% for AGG and -19.6% for BND. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AGG charges 0.03% per year while BND charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, AGG currently yields 3.97% against 3.94% for BND.
Holdings Overlap
AGG and BND share 1094 holdings out of 11655 unique holdings combined, representing a 7.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AGG | Weight in BND | Difference |
|---|---|---|---|
| T 4.125 11/15/32 | 0.29% | 0.37% | 0.08% |
| T 0.625 08/15/30 | 0.25% | 0.31% | 0.06% |
| T 3.875 06/30/30 | 0.30% | 0.21% | 0.09% |
| T 1.5 01/31/27 | Pro | Pro | Pro |
| T 3.75 05/15/28 | Pro | Pro | Pro |
| T 4.5 05/15/27 | Pro | Pro | Pro |
| T 4 07/31/29 | Pro | Pro | Pro |
| T 1.25 05/31/28 | Pro | Pro | Pro |
| T 3.875 07/31/27 | Pro | Pro | Pro |
| T 3.25 06/30/29 | Pro | Pro | Pro |
See all 10 holdings AGG shares with BND Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, AGG or BND?
AGG has an expense ratio of 0.03% while BND charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, AGG or BND?
Over the past year AGG returned +2.71% vs +2.63% for BND, so AGG leads on 1-year performance. Over the longest common window we track (19 years), AGG annualized +3.01% vs +0.68% for BND. Past performance does not guarantee future results.
Which is riskier, AGG or BND?
BND has been the more volatile fund at 4.6% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs BND -19.6%.
Should I hold both AGG and BND?
AGG and BND have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between AGG and BND?
AGG and BND share 1094 common holdings with a 7.4% weight overlap. Combined, they hold 11655 unique securities.
Which pays a higher dividend, AGG or BND?
AGG yields 3.97% while BND yields 3.94%, so AGG currently pays the higher dividend yield.
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