AGG vs FBND
AGG vs FBND
iShares Core US Aggregate Bond ETF vs Fidelity Total Bond ETF
Quick Verdict
AGG has a lower expense ratio. FBND delivered stronger 1-year returns. AGG offers more diversification with 1959 holdings.
Side-by-Side Comparison
| Metric | AGG | FBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.36% | |
| AUM | $137.7B | $26.6B | |
| Dividend Yield | 3.97% | 5.07% | |
| Holdings | 13,269 | 1,558 | |
| YTD Return | -0.53% | -0.33% | |
| 1Y Return | +2.71% | +2.89% | |
| 3Y Return (annualized) | +3.96% | +4.55% | |
| 5Y Return (annualized) | -0.44% | +0.29% | |
| Volatility (annualized) | 4.4% | 5.0% | |
| Max Drawdown | -18.4% | -17.3% | |
| Fund Family | iShares by BlackRock (US) | Fidelity Investments (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Sep 22, 2003 | Oct 6, 2014 |
AGG vs FBND Performance
iShares Core US Aggregate Bond ETF (AGG) is a ETF from iShares by BlackRock (US) and Fidelity Total Bond ETF (FBND) is a ETF from Fidelity Investments (US). Over the past year AGG returned +2.71% while FBND returned +2.89%. Year to date, AGG is down 0.53% versus a loss of 0.33% for FBND.
Over three years, AGG compounded at +3.96% per year against +4.55% for FBND; over five years the annualized figures are -0.44% and +0.29% respectively. Across the full 12-year window we track, AGG has the edge at +3.01% annualized vs +0.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FBND has been the more volatile fund, with annualized monthly volatility of 5.0% 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 -17.3% for FBND. 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 0.94. 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 FBND charges 0.36%. On a $10,000 position that is $3 vs $36 annually, a gap of $33 per year that compounds over a long holding period. On income, AGG currently yields 3.97% against 5.07% for FBND.
Holdings Overlap
AGG and FBND share 1 holdings out of 1999 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AGG | Weight in FBND | Difference |
|---|---|---|---|
| ALLY 8 11/01/31 | 0.00% | 0.01% | 0.01% |
Frequently Asked Questions
Which is cheaper, AGG or FBND?
AGG has an expense ratio of 0.03% while FBND charges 0.36%. AGG is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, AGG or FBND?
Over the past year AGG returned +2.71% vs +2.89% for FBND, so FBND leads on 1-year performance. Over the longest common window we track (12 years), AGG annualized +3.01% vs +0.95% for FBND. Past performance does not guarantee future results.
Which is riskier, AGG or FBND?
FBND has been the more volatile fund at 5.0% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs FBND -17.3%.
Should I hold both AGG and FBND?
AGG and FBND have a monthly-return correlation of 0.94, 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 FBND?
AGG and FBND share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1999 unique securities.
Which pays a higher dividend, AGG or FBND?
AGG yields 3.97% while FBND yields 5.07%, so FBND currently pays the higher dividend yield.
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