AGG vs PAB
iShares Core US Aggregate Bond ETF vs PGIM Active Aggregate Bond ETF
Which is better, AGG or PAB?
Nearly the same fund. AGG costs less.
AGG has a lower expense ratio. PAB led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99.
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 | PAB |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.19% |
| AUM | $137.6B | $98M |
| Dividend Yield | 4.19% | 5.50% |
| Holdings | 13,338 | 466 |
| YTD Return | -1.51%Best | -1.59% |
| 1Y Return | -1.41% | -1.36%Best |
| 3Y Return (annualized) | +4.76% | +5.13%Best |
| 5Y Return (annualized) | -0.36% | -0.31%Best |
| Volatility (annualized) | 6.3%Best | 6.4% |
| Max Drawdown | -17.8%Best | -19.3% |
| $10,000 over 5 years | $9,821 | $9,846Best |
| Fund Family | iShares by BlackRock (US) | PGIM Investments |
| Category | Fixed Income | Fixed Income |
| Inception | Sep 22, 2003 | Apr 12, 2021 |
Not shown on this pair: Top 10 Weight, Style.
Volatility and max drawdown are measured over the window both funds cover: Apr 15, 2021 to Oct 15, 2026 (5.5 years).
AGG vs PAB 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 5.5 years both funds cover.
AGG vs PAB Performance
iShares Core US Aggregate Bond ETF (AGG) is an ETF from iShares by BlackRock (US) and PGIM Active Aggregate Bond ETF (PAB) is an ETF from PGIM Investments. Over the past year AGG returned -1.41% while PAB returned -1.36%. Year to date, AGG is down 1.51% versus a loss of 1.59% for PAB.
Over three years, AGG compounded at +4.76% per year against +5.13% for PAB; over five years the annualized figures are -0.36% and -0.31% respectively. Across the full 6-year window we track, PAB has the edge at -0.15% annualized vs -0.21%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PAB has been the more volatile fund, with annualized monthly volatility of 6.4% compared with 6.3% 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 -17.8% for AGG and -19.3% for PAB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. 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 PAB charges 0.19%. On a $10,000 position that is $3 vs $19 annually, a gap of $16 per year that compounds over a long holding period. On income, AGG currently yields 4.19% against 5.50% for PAB.
Holdings Overlap
We hold position weights for 11,115 holdings in AGG and 301 in PAB, totalling 67.1% and 64.9% 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, 211 positions appear in both.
211 positions in common, counted across the 11,115 positions we hold weights for in AGG and 301 in PAB, against full books of 13,338 and 466.
Top Shared Holdings
| Stock | Weight in AGG | Weight in PAB | Difference |
|---|---|---|---|
| T 3.125 08/31/29United States Treasuryu.S. Treasury Notes 08/31/2029 | 0.15% | 5.92% | 5.77% |
| T 2 11/15/41Us Treas Bds 2% 11/15/41 | 0.15% | 1.72% | 1.57% |
| T 3.5 01/31/28Us Treasury N/B 3.375 01/31/2028 | 0.31% | 1.41% | 1.10% |
| T 1.25 08/15/31U.S. Treasury Note, 1.25%, Due 08/15/2031 | 0.27% | 1.17% | 0.90% |
| T 3 02/15/49Government Of The United States Of America 3.0% 15-Feb-2049 | 0.02% | 1.28% | 1.26% |
| FNCL 6 10/11Fannie Mae Or Freddie Mac 6 | 0.18% | 1.02% | 0.84% |
| T 3.25 05/15/42Us Treas Bds 3.25% 05/15/42 | 0.12% | 1.06% | 0.94% |
| T 1.875 11/15/51Government Of The United States Of America 1.875% 15-Nov-2051 | 0.14% | 1.01% | 0.87% |
| T 4.75 11/15/53Us Treasury N/B 4.75 11/15/2053 | 0.20% | 0.95% | 0.75% |
| T 4.5 12/31/31U.S. Treasury Note, 4.50%, Due 12/31/2031 | 0.16% | 0.90% | 0.74% |
You are not choosing between two funds in isolation.
Whichever of AGG and PAB 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 PAB?
AGG has an expense ratio of 0.03% while PAB charges 0.19%. AGG is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, AGG or PAB?
Over the past year AGG returned -1.41% vs -1.36% for PAB, so PAB leads on 1-year performance. Over the longest common window we track (6 years), AGG annualized -0.21% vs -0.15% for PAB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AGG or PAB?
PAB has been the more volatile fund at 6.4% annualized versus 6.3% for AGG. Worst drawdown: AGG -17.8% vs PAB -19.3%.
Should I hold both AGG and PAB?
AGG and PAB have a monthly-return correlation of 0.99, 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 PAB?
AGG yields 4.19% while PAB yields 5.50%, so PAB currently pays the higher dividend yield.
Is PAB better than AGG?
AGG has a lower expense ratio. PAB led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.