What is the expense ratio of AGG vs EFA?

AGG has an expense ratio of 0.03%, while EFA has an expense ratio of 0.32%.

AGG vs EFA

iShares Core US Aggregate Bond ETF vs iShares MSCI EAFE ETF

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

EFA iShares

iShares MSCI EAFE ETF (EFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges an above-average expense ratio of 0.32%. The fund offers an attractive dividend yield of 3.29%. Launched in 2001, the fund has a 25-year track record.

AUM: $69.1B ER: 0.32% Yield: 3.29% Since: Aug 14, 2001

Quick Verdict

AGG is significantly cheaper at 0.03% vs 0.32% expense ratio, saving you approximately $571 per $10,000 invested over 10 years. Over the past year, EFA has significantly outperformed with a 20.5% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 3.3%).

Key Metrics

Metric	AGG	EFA
Expense Ratio	0.03%	0.32%
Dividend Yield	3.9%	3.3%
Fund Family	iShares	iShares
Category	US Aggregate Bond	International Developed

Performance Chart

Indexed to 100 at start (5-year comparison)

AGG -13.0%

EFA +26.5%

Performance Comparison

Period	AGG	EFA	Difference
1 Month	-1.67%	-4.54%	+2.87%
3 Months	-0.85%	+1.62%	-2.47%
6 Months	-1.18%	+3.71%	-4.89%
YTD	-0.85%	+1.62%	-2.47%
1 Year	+0.04%	+20.48%	-20.44%
3 Years	-0.82%	+36.79%	-37.61%
5 Years	-13.01%	+26.46%	-39.47%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	AGG Fees	EFA Fees	You Save
$10.000	10 years	$60	$631	$571
$10.000	20 years	$258	$2.686	$2.427
$10.000	30 years	$835	$8.571	$7.736
$50.000	10 years	$299	$3.156	$2.857
$50.000	30 years	$4.176	$42.854	$38.678
$100.000	30 years	$8.352	$85.707	$77.355

Risk Metrics

Based on 5 years of daily returns

Metric	AGG	EFA
Annualized Volatility	6.1%	16.6%
Max Drawdown	-21.4%	-32.4%
Sharpe Ratio	-1.17	0.10

Dividend Comparison

Metric	AGG	EFA
Annual Dividend (per share)	$3.90	$3.25
Dividend Yield	3.94%	3.29%
Distribution Frequency	Monthly	Semi-Annual or Annual

Top Holdings

EFA Top Holdings

Name	Weight
ASML Holding N.V.!ams/ASML	2.54%
AstraZeneca PLC!lon/AZN	1.46%
Novartis AG!swx/NOVN	1.41%
Roche Holding AG!swx/ROP	1.36%
HSBC Holdings plc!lon/HSBA	1.36%
Shell plc!lon/SHEL	1.31%
Nestlé S.A.!swx/NESN	1.22%
Toyota Motor Corporation!tyo/7203	1.00%
Commonwealth Bank of Australia!asx/CBA	0.99%
Mitsubishi UFJ Financial Group, Inc.!tyo/8306	0.95%

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 EFA if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose AGG if...

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

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