AGG vs SPY
iShares Core US Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, AGG or SPY?
SPY has been ahead.
AGG has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | SPY |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.09% |
| AUM | $137.6B | $804.7B |
| Dividend Yield | 4.05% | 0.98% |
| Holdings | 13,269 | 505 |
| YTD Return | -1.27% | +12.47%Best |
| 1Y Return | -0.75% | +17.51%Best |
| 3Y Return (annualized) | +3.99% | +21.18%Best |
| 5Y Return (annualized) | -0.53% | +12.88%Best |
| Volatility (annualized) | 4.4%Best | 14.6% |
| Max Drawdown | -18.4%Best | -56.5% |
| $10,000 over 5 years | $9,738 | $18,327Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | Sep 22, 2003 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 26, 2003 to Sep 11, 2026 (23 years).
AGG vs SPY 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 23 years both funds cover.
AGG vs SPY Performance
iShares Core US Aggregate Bond ETF (AGG) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year AGG returned -0.75% while SPY returned +17.51%. Year to date, AGG is down 1.27% versus a gain of 12.47% for SPY.
Over three years, AGG compounded at +3.99% per year against +21.18% for SPY; over five years the annualized figures are -0.53% and +12.88% respectively. Across the full 23-year window we track, SPY has the edge at +9.62% annualized vs +2.96%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.23. They move largely independently of each other.
Fees and Cost Over Time
AGG charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, AGG currently yields 4.05% against 0.98% for SPY.
Holdings Overlap
At least 1.8% of SPY's money is in holdings AGG also owns.
Stated as a floor: for AGG, our book for it covers 70.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SPY and AGG share little of their money.
9 positions in common, counted across the 11,344 positions we hold weights for in AGG and 504 in SPY, against full books of 13,269 and 505.
Top Shared Holdings
| Stock | Weight in AGG | Weight in SPY | Difference |
|---|---|---|---|
| LRCXLam Research Corp | 0.00% | 0.60% | 0.60% |
| GEGeneral Electric Co. | 0.00% | 0.59% | 0.59% |
| DUKDuke Energy Corp. | 0.00% | 0.15% | 0.15% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.02% | 0.12% | 0.10% |
| AONAon Plc-Class A | 0.00% | 0.11% | 0.11% |
| KDPKeurig Dr Pepper Inc. | 0.00% | 0.06% | 0.06% |
| ADMArcher-Daniels-Midland Co. | 0.00% | 0.06% | 0.06% |
| CNPCenterpoint Energy Inc. | 0.00% | 0.04% | 0.04% |
| HUBBHubbell Inc. Class B | 0.00% | 0.04% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of AGG and SPY 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 SPY?
AGG has an expense ratio of 0.03% while SPY charges 0.09%. AGG is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, AGG or SPY?
Over the past year AGG returned -0.75% vs +17.51% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), AGG annualized +2.96% vs +9.62% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AGG or SPY?
SPY has been the more volatile fund at 14.6% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs SPY -56.5%.
Should I hold both AGG and SPY?
AGG and SPY have a monthly-return correlation of 0.23, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between AGG and SPY?
At least 1.8% of SPY's money is in holdings AGG also owns. Our book for AGG is partial, so the real figure is this or higher. They hold 9 positions in common, counted across the 11,344 positions we hold weights for in AGG and 504 in SPY.
Which pays a higher dividend, AGG or SPY?
AGG yields 4.05% while SPY yields 0.98%, so AGG currently pays the higher dividend yield.
Is SPY better than AGG?
AGG has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.