ETF Versus

AGG vs BND

iShares Core US Aggregate Bond ETF vs Vanguard Total Bond Market Index Fund

Last updated: 2026-04-02

AGG iShares

iShares Core US Aggregate Bond ETF (AGG) is an exchange-traded fund issued by iShares that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.94%. Launched in 2003, the fund has a 23-year track record.

AUM: $137.9B ER: 0.03% Yield: 3.94% Since: Sep 22, 2003
BND Vanguard

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. Launched in 2007, the fund has a 19-year track record.

AUM: $150.4B ER: 0.03% Yield: 3.93% Since: Apr 3, 2007

Quick Verdict

Both funds have delivered similar 1-year returns (0.0% vs -0.0%), tracking closely.

Key Metrics

Metric AGG BND
Expense Ratio 0.03% 0.03%
Dividend Yield 3.9% 3.9%
Fund Family iShares Vanguard
Category US Aggregate Bond US Aggregate Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
BND -13.3%

Performance Comparison

Period AGG BND Difference
1 Month -1.67% -1.63% -0.04%
3 Months -0.85% -0.84% -0.01%
6 Months -1.18% -1.20% +0.02%
YTD -0.85% -0.84% -0.01%
1 Year +0.04% -0.03% +0.07%
3 Years -0.82% -0.73% -0.09%
5 Years -13.01% -13.29% +0.28%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees BND Fees You Save
$10.000 10 years $60 $60 $0
$10.000 20 years $258 $258 $0
$10.000 30 years $835 $835 $0
$50.000 10 years $299 $299 $0
$50.000 30 years $4.176 $4.176 $0
$100.000 30 years $8.352 $8.352 $0

Risk Metrics

Based on 5 years of daily returns

Metric AGG BND
Annualized Volatility 6.1% 6.0%
Max Drawdown -21.4% -21.7%
Sharpe Ratio -1.17 -1.19

Dividend Comparison

Metric AGG BND
Annual Dividend (per share) $3.90 $2.88
Dividend Yield 3.94% 3.92%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Either works if...

you just need broad us aggregate bond exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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