AGG vs SCHZ
iShares Core US Aggregate Bond ETF vs Schwab US Aggregate Bond ETF
Which is better, AGG or SCHZ?
Each has led over a different period.
AGG led over 3Y, 5Y and the full window, SCHZ over 1Y. 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 | SCHZ |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $135.8B | $10.5B |
| Dividend Yield | 4.05% | 4.20% |
| Holdings | 13,338 | 24,843 |
| YTD Return | -2.36% | -2.31%Best |
| 1Y Return | -1.56% | -1.54%Best |
| 3Y Return (annualized) | +4.27%Best | +4.17% |
| 5Y Return (annualized) | -0.42%Best | -0.51% |
| Volatility (annualized) | 4.5%Best | 4.6% |
| Max Drawdown | -18.4%Best | -19.7% |
| $10,000 over 5 years | $9,792Best | $9,748 |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Fixed Income |
| Inception | Sep 22, 2003 | Jul 14, 2011 |
Not shown on this pair: Top 10 Weight, Style.
Volatility and max drawdown are measured over the window both funds cover: Jul 14, 2011 to Oct 9, 2026 (15.2 years).
AGG vs SCHZ 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 15.2 years both funds cover.
AGG vs SCHZ Performance
iShares Core US Aggregate Bond ETF (AGG) is an ETF from iShares by BlackRock (US) and Schwab US Aggregate Bond ETF (SCHZ) is an ETF from Charles Schwab Asset Management. Over the past year AGG returned -1.56% while SCHZ returned -1.54%. Year to date, AGG is down 2.36% versus a loss of 2.31% for SCHZ.
Over three years, AGG compounded at +4.27% per year against +4.17% for SCHZ; over five years the annualized figures are -0.42% and -0.51% respectively. Across the full 15-year window we track, AGG has the edge at +1.92% annualized vs +0.42%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHZ has been the more volatile fund, with annualized monthly volatility of 4.6% compared with 4.5% 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 -19.7% for SCHZ. 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 SCHZ charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, AGG currently yields 4.05% against 4.20% for SCHZ.
Holdings Overlap
We hold position weights for 11,240 holdings in AGG and 1,656 in SCHZ, totalling 67.7% and 2.2% 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, 1,559 positions appear in both.
1,559 positions in common, counted across the 11,240 positions we hold weights for in AGG and 1,656 in SCHZ, against full books of 13,338 and 24,843.
Top Shared Holdings
| Stock | Weight in AGG | Weight in SCHZ | Difference |
|---|---|---|---|
| FN MA4512Fannie Mae 2.5 01/01/2052 | 0.10% | 0.00% | 0.10% |
| FG G08741Freddie Mac Gold Pool | 0.01% | 0.03% | 0.02% |
| EIB 4.125 02/13/34European Investment Bank 4.13 2034-02-13 | 0.02% | 0.01% | 0.01% |
| BAC V2.687 04/22/32Bank Of America Corp 2.69% 22Apr2032 | 0.02% | 0.01% | 0.01% |
| FR SB8136Fr Sb8136 1.5 01/01/2037 | 0.00% | 0.03% | 0.03% |
| USB V4.839 02/01/34Us Bancorp 4.839 02/01/2034 | 0.01% | 0.01% | 0.00% |
| BPLN 4.812 02/13/33Bp Cap Mkts Amer 4.812 02/13/2033 | 0.01% | 0.01% | 0.00% |
| LLOYDS V3.574 11/07/Lloyds Banking Group Plc 3.574% 11/07/2028 | 0.01% | 0.01% | 0.00% |
| ABIBB 4.95 01/15/42Anheuser-busch Inbev Worldwide Inc. | 0.01% | 0.01% | 0.00% |
| AAPL 2.2 09/11/29Apple Inc | 0.01% | 0.01% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of AGG and SCHZ 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 SCHZ?
AGG has an expense ratio of 0.03% while SCHZ charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, AGG or SCHZ?
Over the past year AGG returned -1.56% vs -1.54% for SCHZ, so SCHZ leads on 1-year performance. Over the longest common window we track (15 years), AGG annualized +1.92% vs +0.42% for SCHZ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AGG or SCHZ?
SCHZ has been the more volatile fund at 4.6% annualized versus 4.5% for AGG. Worst drawdown: AGG -18.4% vs SCHZ -19.7%.
Should I hold both AGG and SCHZ?
AGG and SCHZ 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 SCHZ?
AGG yields 4.05% while SCHZ yields 4.20%, so SCHZ currently pays the higher dividend yield.
Is SCHZ better than AGG?
AGG led over 3Y, 5Y and the full window, SCHZ over 1Y. 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.