AGZ vs VYM
iShares Agency Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | AGZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $558M | $79.0B | |
| Dividend Yield | 3.72% | 2.86% | |
| Holdings | 101 | 568 | |
| YTD Return | +0.22% | +16.53% | |
| 1Y Return | +2.47% | +25.03% | |
| 3Y Return (annualized) | +4.31% | +18.54% | |
| 5Y Return (annualized) | +1.06% | +12.25% | |
| Volatility (annualized) | 2.7% | 14.6% | |
| Max Drawdown | -12.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 5, 2008 | Nov 10, 2006 |
AGZ vs VYM Performance
iShares Agency Bond ETF (AGZ) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year AGZ returned +2.47% while VYM returned +25.03%. Year to date, AGZ is up 0.22% versus a gain of 16.53% for VYM.
Over three years, AGZ compounded at +4.31% per year against +18.54% for VYM; over five years the annualized figures are +1.06% and +12.25% respectively. Across the full 18-year window we track, VYM has the edge at +7.10% annualized vs +1.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.7% for AGZ. 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 -12.1% for AGZ and -58.8% for VYM. 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AGZ charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, AGZ currently yields 3.72% against 2.86% for VYM.
Holdings Overlap
AGZ and VYM share 0 holdings out of 644 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AGZ or VYM?
AGZ has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, AGZ or VYM?
Over the past year AGZ returned +2.47% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), AGZ annualized +1.16% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, AGZ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.7% for AGZ. Worst drawdown: AGZ -12.1% vs VYM -58.8%.
Should I hold both AGZ and VYM?
AGZ and VYM have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AGZ and VYM?
AGZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 644 unique securities.
Which pays a higher dividend, AGZ or VYM?
AGZ yields 3.72% while VYM yields 2.86%, so AGZ currently pays the higher dividend yield.
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