AGG vs VGIT

Quick Verdict

AGG delivered stronger 1-year returns. AGG offers more diversification with 1959 holdings.

Lower Fees: TiedHigher Returns: AGGMore Diversified: AGG

Side-by-Side Comparison

MetricAGGVGITWinner
Expense Ratio0.03%0.03%
AUM$137.7B$42.1B
Dividend Yield3.97%3.84%
Holdings13,269106
YTD Return-0.65%-0.91%
1Y Return+1.64%+0.89%
3Y Return (annualized)+3.95%+3.56%
5Y Return (annualized)-0.47%-0.34%
Volatility (annualized)4.4%4.3%
Max Drawdown-18.4%-17.2%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeFixed Income
InceptionSep 22, 2003Nov 19, 2009

AGG vs VGIT Performance

iShares Core US Aggregate Bond ETF (AGG) is a ETF from iShares by BlackRock (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year AGG returned +1.64% while VGIT returned +0.89%. Year to date, AGG is down 0.65% versus a loss of 0.91% for VGIT.

Over three years, AGG compounded at +3.95% per year against +3.56% for VGIT; over five years the annualized figures are -0.47% and -0.34% respectively. Across the full 17-year window we track, AGG has the edge at +3.00% annualized vs +0.74%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

AGG has been the more volatile fund, with annualized monthly volatility of 4.4% compared with 4.3% for VGIT. 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 -17.2% for VGIT. 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 0.90. 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 VGIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, AGG currently yields 3.97% against 3.84% for VGIT.

Holdings Overlap

2.6%overlap

AGG and VGIT share 16 holdings out of 2027 unique holdings combined, representing a 2.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in AGGWeight in VGITDifference
T 4.125 11/15/320.29%1.59%1.30%
T 0.625 08/15/300.25%1.43%1.18%
T 3.875 06/30/300.30%1.09%0.79%
T 4 07/31/29ProProPro
T 4.625 04/30/31ProProPro
T 1.5 02/15/30ProProPro
T 3.75 08/31/31ProProPro
T 4 04/30/32ProProPro
T 4.125 10/31/31ProProPro
T 4.125 05/31/32ProProPro
See all 10 holdings AGG shares with VGIT
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, AGG or VGIT?

AGG has an expense ratio of 0.03% while VGIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, AGG or VGIT?

Over the past year AGG returned +1.64% vs +0.89% for VGIT, so AGG leads on 1-year performance. Over the longest common window we track (17 years), AGG annualized +3.00% vs +0.74% for VGIT. Past performance does not guarantee future results.

Which is riskier, AGG or VGIT?

AGG has been the more volatile fund at 4.4% annualized versus 4.3% for VGIT. Worst drawdown: AGG -18.4% vs VGIT -17.2%.

Should I hold both AGG and VGIT?

AGG and VGIT have a monthly-return correlation of 0.90, 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 VGIT?

AGG and VGIT share 16 common holdings with a 2.6% weight overlap. Combined, they hold 2027 unique securities.

Which pays a higher dividend, AGG or VGIT?

AGG yields 3.97% while VGIT yields 3.84%, so AGG currently pays the higher dividend yield.

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