AGG vs BND
iShares Core US Aggregate Bond ETF vs Vanguard Total Bond Market ETF
Which is better, AGG or BND?
Each has led over a different period.
AGG led over 5Y and the full window, BND over 1Y. The two have moved almost in lockstep, correlation 0.96.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AGG | BND |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $137.6B | $160.9B |
| Dividend Yield | 4.05% | 4.04% |
| Holdings | 13,269 | 17,437 |
| YTD Return | -1.27% | -1.20%Best |
| 1Y Return | -0.75% | -0.74%Best |
| 3Y Return (annualized) | +3.99%Tie | +3.99%Tie |
| 5Y Return (annualized) | -0.53%Best | -0.55% |
| Volatility (annualized) | 4.6%Tie | 4.6%Tie |
| Max Drawdown | -18.4%Best | -19.6% |
| $10,000 over 5 years | $9,738Best | $9,728 |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | - | Intermediate Term Bond |
| Inception | Sep 22, 2003 | Apr 3, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Sep 11, 2026 (19.4 years).
AGG vs BND growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.4 years both funds cover.
AGG vs BND Performance
iShares Core US Aggregate Bond ETF (AGG) is an ETF from iShares by BlackRock (US) and Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US). Over the past year AGG returned -0.75% while BND returned -0.74%. Year to date, AGG is down 1.27% versus a loss of 1.20% for BND.
Over three years, AGG compounded at +3.99% per year against +3.99% for BND; over five years the annualized figures are -0.53% and -0.55% respectively. Across the full 19-year window we track, AGG has the edge at +2.89% annualized vs +0.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AGG and BND have been equally volatile, both at 4.6% annualized.
The deepest peak-to-trough decline in our data was -18.4% for AGG and -19.6% for BND. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 4.05% against 4.04% for BND.
Holdings Overlap
We hold position weights for 11,344 holdings in AGG and 1,182 in BND, totalling 70.7% and 12.6% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 1,137 positions appear in both.
1,137 positions in common, counted across the 11,344 positions we hold weights for in AGG and 1,182 in BND, against full books of 13,269 and 17,437.
Top Shared Holdings
| Stock | Weight in AGG | Weight in BND | Difference |
|---|---|---|---|
| T 4.25 08/15/35Wi Treasury Sec. 08/35 4.25 | 0.40% | 0.39% | 0.01% |
| T 4 02/15/34Usa, Notes 4% 15Feb2034 | 0.39% | 0.40% | 0.01% |
| T 4 02/28/30Us Treasury 4.0% | 0.41% | 0.34% | 0.07% |
| T 3.875 08/15/33United States Treasury Note/Bond 3.88% 08/15/2033 | 0.35% | 0.36% | 0.01% |
| T 2.875 05/15/32Treasury Note (Otr) 2.88% May 15, 2032 | 0.33% | 0.35% | 0.02% |
| T 3.375 05/15/33Treasury Note (Otr) 3.38% May 15, 2033 | 0.31% | 0.32% | 0.01% |
| T 2.75 08/15/32United States Treasury Note/Bond 2.75% 08/15/2032 | 0.27% | 0.32% | 0.05% |
| T 1.125 02/15/31Treasury Note (Otr) 1.13% Feb 15, 2031 | 0.22% | 0.31% | 0.09% |
| T 0.625 05/15/30Treasury Note (old) 0.63 May 15, 2030 | 0.19% | 0.28% | 0.09% |
| T 3.875 10/15/27Virginia Public School Authority, Prince William County, 4.25%, 10/01/2039 | 0.24% | 0.20% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of AGG and BND you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AGG or BND?
AGG has an expense ratio of 0.03% while BND charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, AGG or BND?
Over the past year AGG returned -0.75% vs -0.74% for BND, so BND leads on 1-year performance. Over the longest common window we track (19 years), AGG annualized +2.89% vs +0.64% for BND. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AGG or BND?
AGG and BND have been equally volatile, both at 4.6% annualized. 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, AGG or BND?
AGG yields 4.05% while BND yields 4.04%, so AGG currently pays the higher dividend yield.
Is BND better than AGG?
AGG led over 5Y and the full window, BND over 1Y. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.