ETF Versus

AGG vs BNDX

iShares Core US Aggregate Bond ETF vs Vanguard Total International Bond 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
BNDX

Vanguard Total International Bond Index Fund (BNDX) is an exchange-traded fund that provides exposure to international bond securities. It charges a low expense ratio of 0.07%. The fund offers a high dividend yield of 4.46%. Launched in 2013, the fund has a 13-year track record.

AUM: $76.8B ER: 0.07% Yield: 4.46% Since: Jun 4, 2013

Quick Verdict

AGG has a slightly lower expense ratio (0.03% vs 0.07%), saving about $80 per $10,000 over 10 years. AGG has edged ahead over the past year (0.0% vs -1.7%). Income investors may prefer BNDX for its higher yield (4.5% vs 3.9%).

Key Metrics

Metric AGG BNDX
Expense Ratio 0.03% 0.07%
Dividend Yield 3.9% 4.5%
Fund Family iShares N/A
Category US Aggregate Bond International 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%
BNDX -15.9%

Performance Comparison

Period AGG BNDX Difference
1 Month -1.67% -1.88% +0.21%
3 Months -0.85% -0.62% -0.23%
6 Months -1.18% -2.83% +1.65%
YTD -0.85% -0.62% -0.23%
1 Year +0.04% -1.68% +1.72%
3 Years -0.82% -1.88% +1.06%
5 Years -13.01% -15.89% +2.88%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees BNDX Fees You Save
$10.000 10 years $60 $140 $80
$10.000 20 years $258 $600 $342
$10.000 30 years $835 $1.938 $1.103
$50.000 10 years $299 $698 $398
$50.000 30 years $4.176 $9.692 $5.516
$100.000 30 years $8.352 $19.383 $11.032

Risk Metrics

Based on 5 years of daily returns

Metric AGG BNDX
Annualized Volatility 6.1% 5.3%
Max Drawdown -21.4% -19.1%
Sharpe Ratio -1.17 -1.48

Dividend Comparison

Metric AGG BNDX
Annual Dividend (per share) $3.90 $2.14
Dividend Yield 3.94% 4.45%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose AGG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose BNDX if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Related Comparisons

AGG vs BND AGG vs DGRO AGG vs DVY AGG vs EEM AGG vs EFA AGG vs GLD AGG vs HDV AGG vs HYG