IAGG vs VTI
iShares Core International Aggregate Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | IAGG | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $10.9B | $663.5B | |
| Dividend Yield | 3.63% | 1.07% | |
| Holdings | 8,021 | 3,543 | |
| YTD Return | -0.28% | +13.87% | |
| 1Y Return | -2.41% | +23.31% | |
| 3Y Return (annualized) | +3.22% | +21.17% | |
| 5Y Return (annualized) | -0.05% | +12.23% | |
| Volatility (annualized) | 4.1% | 15.3% | |
| Max Drawdown | -13.9% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 10, 2015 | May 24, 2001 |
IAGG vs VTI Performance
iShares Core International Aggregate Bond ETF (IAGG) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IAGG returned -2.41% while VTI returned +23.31%. Year to date, IAGG is down 0.28% versus a gain of 13.87% for VTI.
Over three years, IAGG compounded at +3.22% per year against +21.17% for VTI; over five years the annualized figures are -0.05% and +12.23% respectively. Across the full 11-year window we track, VTI has the edge at +8.13% annualized vs +2.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.1% for IAGG. 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 -13.9% for IAGG and -56.6% for VTI. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAGG charges 0.07% per year while VTI charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, IAGG currently yields 3.63% against 1.07% for VTI.
Holdings Overlap
IAGG and VTI share 0 holdings out of 3167 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, IAGG or VTI?
IAGG has an expense ratio of 0.07% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IAGG or VTI?
Over the past year IAGG returned -2.41% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (11 years), IAGG annualized +2.01% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, IAGG or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.1% for IAGG. Worst drawdown: IAGG -13.9% vs VTI -56.6%.
Should I hold both IAGG and VTI?
IAGG and VTI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAGG and VTI?
IAGG and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3167 unique securities.
Which pays a higher dividend, IAGG or VTI?
IAGG yields 3.63% while VTI yields 1.07%, so IAGG currently pays the higher dividend yield.
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