AGG vs TLT
iShares Core US Aggregate Bond ETF vs iShares 20+ Year Treasury Bond ETF
Which is better, AGG or TLT?
AGG has been ahead.
AGG has a lower expense ratio. AGG 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 | TLT |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.15% |
| AUM | $137.6B | $46.9B |
| Dividend Yield | 4.05% | 4.73% |
| Holdings | 13,269 | 48 |
| YTD Return | -1.27%Best | -4.22% |
| 1Y Return | -0.75%Best | -6.38% |
| 3Y Return (annualized) | +3.99%Best | -0.49% |
| 5Y Return (annualized) | -0.53%Best | -8.17% |
| Volatility (annualized) | 4.4%Best | 13.3% |
| Max Drawdown | -18.4%Best | -48.7% |
| $10,000 over 5 years | $9,738Best | $6,530 |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) |
| Category | Fixed Income | Fixed Income |
| Style | - | Long Term Government Bond |
| Inception | Sep 22, 2003 | Jul 22, 2002 |
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 TLT 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 TLT Performance
iShares Core US Aggregate Bond ETF (AGG) is an ETF from iShares by BlackRock (US) and iShares 20+ Year Treasury Bond ETF (TLT) is an ETF from iShares by BlackRock (US). Over the past year AGG returned -0.75% while TLT returned -6.38%. Year to date, AGG is down 1.27% versus a loss of 4.22% for TLT.
Over three years, AGG compounded at +3.99% per year against -0.49% for TLT; over five years the annualized figures are -0.53% and -8.17% respectively. Across the full 23-year window we track, AGG has the edge at +2.96% annualized vs +0.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLT has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -48.7% for TLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AGG charges 0.03% per year while TLT charges 0.15%. On a $10,000 position that is $3 vs $15 annually, a gap of $12 per year that compounds over a long holding period. On income, AGG currently yields 4.05% against 4.73% for TLT.
Holdings Overlap
We hold position weights for 11,344 holdings in AGG and 44 in TLT, totalling 70.7% and 87.6% 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, 44 positions appear in both.
44 positions in common, counted across the 11,344 positions we hold weights for in AGG and 44 in TLT, against full books of 13,269 and 48.
Top Shared Holdings
| Stock | Weight in AGG | Weight in TLT | Difference |
|---|---|---|---|
| T 4.75 05/15/55Treasury Bond (Otr) 4.75% May 15, 2055 | 0.20% | 4.51% | 4.31% |
| T 4.625 05/15/54U.S. Treasury Bonds 2054-05-15 | 0.20% | 4.28% | 4.08% |
| T 4.125 08/15/53U.S. Treasury Bonds | 0.17% | 4.19% | 4.02% |
| T 4.25 02/15/54Treasury Bond 4.25 02/15/2054 | 0.19% | 4.04% | 3.85% |
| T 4.75 11/15/53United States Treasury, 4.750% Nov. 15 53 | 0.21% | 3.98% | 3.77% |
| T 4.25 08/15/54Treasury Bond (Otr) 4.25% Aug 15, 2054 | 0.20% | 3.95% | 3.75% |
| T 4.625 02/15/55Us Treasury N/B 4.63 2055-02-15 | 0.21% | 3.81% | 3.60% |
| T 4.5 11/15/54Treasury Bond (Otr) 4.5% Nov 15, 2054 | 0.20% | 3.80% | 3.60% |
| T 1.875 11/15/51U.S. Treasury Bond, 1.875%, Due 11/15/2051 | 0.15% | 3.80% | 3.65% |
| T 4.75 08/15/55Wi Treasury Sec 08/55 4.75 | 0.21% | 3.31% | 3.10% |
You are not choosing between two funds in isolation.
Whichever of AGG and TLT 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 TLT?
AGG has an expense ratio of 0.03% while TLT charges 0.15%. AGG is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, AGG or TLT?
Over the past year AGG returned -0.75% vs -6.38% for TLT, so AGG leads on 1-year performance. Over the longest common window we track (23 years), AGG annualized +2.96% vs +0.53% for TLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AGG or TLT?
TLT has been the more volatile fund at 13.3% annualized versus 4.4% for AGG. Worst drawdown: AGG -18.4% vs TLT -48.7%.
Should I hold both AGG and TLT?
AGG and TLT have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, AGG or TLT?
AGG yields 4.05% while TLT yields 4.73%, so TLT currently pays the higher dividend yield.
Is TLT better than AGG?
AGG has a lower expense ratio. AGG 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.