ETF Versus

AGG vs HDV

iShares Core US Aggregate Bond ETF vs iShares Core High Dividend 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
HDV iShares

iShares Core High Dividend ETF (HDV) is an exchange-traded fund issued by iShares that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a low expense ratio of 0.08%. The fund offers an attractive dividend yield of 2.96%. Launched in 2011, the fund has a 15-year track record.

AUM: $13.5B ER: 0.08% Yield: 2.96% Since: Mar 29, 2011

Quick Verdict

AGG has a slightly lower expense ratio (0.03% vs 0.08%), saving about $99 per $10,000 over 10 years. Over the past year, HDV has significantly outperformed with a 11.2% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 3.0%).

Key Metrics

Metric AGG HDV
Expense Ratio 0.03% 0.08%
Dividend Yield 3.9% 3.0%
Fund Family iShares iShares
Category US Aggregate Bond US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

80 93 106 119 132 145 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
HDV +39.8%

Performance Comparison

Period AGG HDV Difference
1 Month -1.67% -4.43% +2.76%
3 Months -0.85% +9.57% -10.42%
6 Months -1.18% +9.49% -10.67%
YTD -0.85% +9.57% -10.42%
1 Year +0.04% +11.17% -11.13%
3 Years -0.82% +30.22% -31.04%
5 Years -13.01% +39.76% -52.77%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees HDV Fees You Save
$10.000 10 years $60 $159 $99
$10.000 20 years $258 $686 $427
$10.000 30 years $835 $2.212 $1.377
$50.000 10 years $299 $797 $497
$50.000 30 years $4.176 $11.061 $6.886
$100.000 30 years $8.352 $22.123 $13.771

Risk Metrics

Based on 5 years of daily returns

Metric AGG HDV
Annualized Volatility 6.1% 13.0%
Max Drawdown -21.4% -16.9%
Sharpe Ratio -1.17 0.24

Dividend Comparison

Metric AGG HDV
Annual Dividend (per share) $3.90 $3.96
Dividend Yield 3.94% 2.96%
Distribution Frequency Monthly Quarterly

Top Holdings

HDV Top Holdings

NameWeight
Exxon Mobil CorporationXOM9.48%
Chevron CorporationCVX7.13%
Johnson & JohnsonJNJ6.04%
AbbVie Inc.ABBV5.48%
The Procter & Gamble CompanyPG4.40%
Philip Morris International Inc.PM4.20%
Merck & Co., Inc.MRK4.20%
The Home Depot, Inc.HD4.05%
The Progressive CorporationPGR3.80%
The Coca-Cola CompanyKO3.77%

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 HDV 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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