AGG vs SPY
AGG vs SPY
iShares Core US Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
AGG has a lower expense ratio. SPY delivered stronger 1-year returns. AGG offers more diversification with 1959 holdings.
Side-by-Side Comparison
| Metric | AGG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $137.7B | $789.1B | |
| Dividend Yield | 3.97% | 1.01% | |
| Holdings | 13,269 | 505 | |
| YTD Return | -0.19% | +13.28% | |
| 1Y Return | +2.08% | +23.94% | |
| 3Y Return (annualized) | +4.11% | +21.07% | |
| 5Y Return (annualized) | -0.33% | +13.27% | |
| Volatility (annualized) | 4.4% | 15.3% | |
| Max Drawdown | -18.4% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2003 | Jan 22, 1993 |
AGG vs SPY Performance
iShares Core US Aggregate Bond ETF (AGG) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AGG returned +2.08% while SPY returned +23.94%. Year to date, AGG is down 0.19% versus a gain of 13.28% for SPY.
Over three years, AGG compounded at +4.11% per year against +21.07% for SPY; over five years the annualized figures are -0.33% and +13.27% respectively. Across the full 23-year window we track, SPY has the edge at +8.84% annualized vs +3.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AGG charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, AGG currently yields 3.97% against 1.01% for SPY.
Holdings Overlap
AGG and SPY share 1 holdings out of 2461 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 SPY | Difference |
|---|---|---|---|
| KDP | 0.00% | 0.07% | 0.07% |
Frequently Asked Questions
Which is cheaper, AGG or SPY?
AGG has an expense ratio of 0.03% while SPY charges 0.09%. AGG is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, AGG or SPY?
Over the past year AGG returned +2.08% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), AGG annualized +3.02% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, AGG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs SPY -56.5%.
Should I hold both AGG and SPY?
AGG and SPY have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AGG and SPY?
AGG and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2461 unique securities.
Which pays a higher dividend, AGG or SPY?
AGG yields 3.97% while SPY yields 1.01%, so AGG currently pays the higher dividend yield.
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