AGG vs TLT
AGG vs TLT
iShares Core US Aggregate Bond ETF vs iShares 20+ Year Treasury Bond ETF
Quick Verdict
AGG has a lower expense ratio. AGG delivered stronger 1-year returns. AGG offers more diversification with 1959 holdings.
Side-by-Side Comparison
| Metric | AGG | TLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.15% | |
| AUM | $137.7B | $43.0B | |
| Dividend Yield | 3.97% | 4.53% | |
| Holdings | 13,269 | 48 | |
| YTD Return | -0.53% | -3.35% | |
| 1Y Return | +2.71% | -1.06% | |
| 3Y Return (annualized) | +3.96% | -1.44% | |
| 5Y Return (annualized) | -0.44% | -8.15% | |
| Volatility (annualized) | 4.4% | 13.4% | |
| Max Drawdown | -18.4% | -48.7% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Sep 22, 2003 | Jul 22, 2002 |
AGG vs TLT Performance
iShares Core US Aggregate Bond ETF (AGG) is a ETF from iShares by BlackRock (US) and iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US). Over the past year AGG returned +2.71% while TLT returned -1.06%. Year to date, AGG is down 0.53% versus a loss of 3.35% for TLT.
Over three years, AGG compounded at +3.96% per year against -1.44% for TLT; over five years the annualized figures are -0.44% and -8.15% respectively. Across the full 23-year window we track, AGG has the edge at +3.01% annualized vs +0.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLT has been the more volatile fund, with annualized monthly volatility of 13.4% 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 -48.7% for TLT. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AGG charges 0.03% per year while TLT charges 0.15%. On a $10,000 position that is $3 vs $15 annually, a gap of $12 per year that compounds over a long holding period. On income, AGG currently yields 3.97% against 4.53% for TLT.
Holdings Overlap
AGG and TLT share 6 holdings out of 1997 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AGG | Weight in TLT | Difference |
|---|---|---|---|
| T 1.875 11/15/51 | 0.15% | 4.54% | 4.39% |
| T 4 11/15/52 | 0.15% | 3.71% | 3.56% |
| T 3 02/15/48 | 0.09% | 2.13% | 2.04% |
| T 3 02/15/47 | Pro | Pro | Pro |
| T 4.75 02/15/45 | Pro | Pro | Pro |
| T 3.125 08/15/44 | Pro | Pro | Pro |
See all 6 holdings AGG shares with TLT 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 TLT?
AGG has an expense ratio of 0.03% while TLT charges 0.15%. AGG is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, AGG or TLT?
Over the past year AGG returned +2.71% vs -1.06% for TLT, so AGG leads on 1-year performance. Over the longest common window we track (23 years), AGG annualized +3.01% vs +0.79% for TLT. Past performance does not guarantee future results.
Which is riskier, AGG or TLT?
TLT has been the more volatile fund at 13.4% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs TLT -48.7%.
Should I hold both AGG and TLT?
AGG and TLT have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AGG and TLT?
AGG and TLT share 6 common holdings with a 0.5% weight overlap. Combined, they hold 1997 unique securities.
Which pays a higher dividend, AGG or TLT?
AGG yields 3.97% while TLT yields 4.53%, so TLT currently pays the higher dividend yield.
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