AGG vs FBND
iShares Core US Aggregate Bond ETF vs Fidelity Total Bond ETF
Which is better, AGG or FBND?
Each has led over a different period.
AGG has a lower expense ratio. AGG led over the full window, FBND over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.94.
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 | FBND |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.36% |
| AUM | $135.8B | $28.2B |
| Dividend Yield | 4.05% | 5.11% |
| Holdings | 13,338 | 3,515 |
| YTD Return | -2.28%Best | -2.39% |
| 1Y Return | -2.07%Tie | -2.07%Tie |
| 3Y Return (annualized) | +4.29% | +4.77%Best |
| 5Y Return (annualized) | -0.48% | +0.11%Best |
| Volatility (annualized) | 4.9%Best | 5.0% |
| Max Drawdown | -18.4% | -17.3%Best |
| $10,000 over 5 years | $9,762 | $10,055Best |
| Fund Family | iShares by BlackRock (US) | Fidelity Investments (US) |
| Category | Fixed Income | Fixed Income |
| Style | - | Long Term Mid Quality |
| Inception | Sep 22, 2003 | Oct 6, 2014 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 9, 2014 to Oct 12, 2026 (12 years).
AGG vs FBND 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 12 years both funds cover.
AGG vs FBND Performance
iShares Core US Aggregate Bond ETF (AGG) is an ETF from iShares by BlackRock (US) and Fidelity Total Bond ETF (FBND) is an ETF from Fidelity Investments (US). Over the past year AGG returned -2.07% while FBND returned -2.07%. Year to date, AGG is down 2.28% versus a loss of 2.39% for FBND.
Over three years, AGG compounded at +4.29% per year against +4.77% for FBND; over five years the annualized figures are -0.48% and +0.11% respectively. Across the full 12-year window we track, AGG has the edge at +1.55% annualized vs +0.76%.
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 4.9% 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 what each fund did in the worst stretch of the window measured above.
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 4.05% against 5.11% for FBND.
Holdings Overlap
We hold position weights for 11,240 holdings in AGG and 891 in FBND, totalling 67.7% and 60.3% 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, 264 positions appear in both.
264 positions in common, counted across the 11,240 positions we hold weights for in AGG and 891 in FBND, against full books of 13,338 and 3,515.
Top Shared Holdings
| Stock | Weight in AGG | Weight in FBND | Difference |
|---|---|---|---|
| T 4.25 08/15/35United States Treasury Note/Bond 4.25% 08/15/2035 | 0.38% | 1.83% | 1.45% |
| FNCL 2 10/13Fannie Mae Or Freddie Mac 2 | 0.07% | 1.74% | 1.67% |
| T 4.25 02/15/54Treasury Bond 4.25 02/15/2054 | 0.18% | 1.34% | 1.16% |
| T 4.25 05/15/35Us Treas Nts 4.25% 05/15/35 | 0.39% | 1.02% | 0.63% |
| T 4.25 11/15/34Us Treas Nts 4.25% 11/15/34 | 0.40% | 0.91% | 0.51% |
| T 4.5 11/15/54Treasury Bond (Otr) 4.5% Nov 15, 2054 | 0.19% | 1.10% | 0.91% |
| T 4.625 02/15/35Us T-Note 4.625% 02/15/35 | 0.40% | 0.78% | 0.38% |
| T 4.75 08/15/55Wi Treasury Sec 08/55 4.75 | 0.20% | 0.98% | 0.78% |
| T 4.125 03/31/32Us Treasury N/B 03/32 4.125 | 0.12% | 1.05% | 0.93% |
| T 4.75 05/15/55Treasury Bond (Otr) 4.75% May 15, 2055 | 0.21% | 0.91% | 0.70% |
You are not choosing between two funds in isolation.
Whichever of AGG and FBND 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 FBND?
AGG has an expense ratio of 0.03% while FBND charges 0.36%. AGG is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, AGG or FBND?
Over the past year AGG returned -2.07% vs -2.07% for FBND, so FBND leads on 1-year performance. Over the longest common window we track (12 years), AGG annualized +1.55% vs +0.76% for FBND. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AGG or FBND?
FBND has been the more volatile fund at 5.0% annualized versus 4.9% 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. 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 FBND?
AGG yields 4.05% while FBND yields 5.11%, so FBND currently pays the higher dividend yield.
Is FBND better than AGG?
AGG has a lower expense ratio. AGG led over the full window, FBND over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.94. Which one suits a particular account depends on what it is for. This is information, not a recommendation.