AGG vs SCHZ
iShares Core US Aggregate Bond ETF vs Schwab US Aggregate Bond ETF
Quick Verdict
SCHZ delivered stronger 1-year returns. AGG offers more diversification with 13,269 holdings.
Side-by-Side Comparison
| Metric | AGG | SCHZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $138.4B | $10.6B | |
| Dividend Yield | 4.04% | 4.19% | |
| Holdings | 13,269 | 12,372 | |
| YTD Return | +0.00% | +0.03% | |
| 1Y Return | +2.26% | +2.35% | |
| 3Y Return (annualized) | +4.47% | +4.32% | |
| 5Y Return (annualized) | -0.24% | -0.34% | |
| Volatility (annualized) | 4.4% | 4.6% | |
| Max Drawdown | -18.4% | -19.7% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Fixed Income | |
| Inception | Sep 22, 2003 | Jul 14, 2011 |
AGG vs SCHZ Performance
iShares Core US Aggregate Bond ETF (AGG) is a ETF from iShares by BlackRock (US) and Schwab US Aggregate Bond ETF (SCHZ) is a ETF from Charles Schwab Asset Management. Over the past year AGG returned +2.26% while SCHZ returned +2.35%. Year to date, AGG is up 0.00% versus a gain of 0.03% for SCHZ.
Over three years, AGG compounded at +4.47% per year against +4.32% for SCHZ; over five years the annualized figures are -0.24% and -0.34% respectively. Across the full 15-year window we track, AGG has the edge at +3.02% annualized vs +0.58%. 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 4.4% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 4.04% against 4.19% for SCHZ.
Holdings Overlap
AGG and SCHZ share 100 holdings out of 2559 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AGG | Weight in SCHZ | Difference |
|---|---|---|---|
| AAPL 1.2 02/08/28 | 0.01% | 0.01% | 0.00% |
| BAC 5 01/21/44 MTN | 0.01% | 0.01% | 0.00% |
| JPM V6.087 10/23/29 | 0.01% | 0.01% | 0.00% |
| IADB 4.5 02/15/30 | Pro | Pro | Pro |
| BPLN 5.227 11/17/34 | Pro | Pro | Pro |
| ORCL 3.25 11/15/27 | Pro | Pro | Pro |
| TMUS 3.4 10/15/52 | Pro | Pro | Pro |
| JPM V2.58 04/22/32 | Pro | Pro | Pro |
| HSBC 4.95 03/31/30 | Pro | Pro | Pro |
| HSBC V5.79 05/13/36 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, AGG or SCHZ?
AGG has an expense ratio of 0.03% while SCHZ charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, AGG or SCHZ?
Over the past year AGG returned +2.26% vs +2.35% for SCHZ, so SCHZ leads on 1-year performance. Over the longest common window we track (15 years), AGG annualized +3.02% vs +0.58% for SCHZ. Past performance does not guarantee future results.
Which is riskier, AGG or SCHZ?
SCHZ has been the more volatile fund at 4.6% annualized versus 4.4% 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. 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 SCHZ?
AGG and SCHZ share 100 common holdings with a 0.1% weight overlap. Combined, they hold 2559 unique securities.
Which pays a higher dividend, AGG or SCHZ?
AGG yields 4.04% while SCHZ yields 4.19%, so SCHZ currently pays the higher dividend yield.
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