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AGG vs IEF

iShares Core US Aggregate Bond ETF vs iShares 7-10 Year Treasury Bond 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
IEF iShares

iShares 7-10 Year Treasury Bond ETF (IEF) is an exchange-traded fund issued by iShares that provides exposure to intermediate-term U.S. Treasury bonds. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.84%. Launched in 2002, the fund has a 24-year track record.

AUM: $48.0B ER: 0.15% Yield: 3.84% Since: Jul 22, 2002

Quick Verdict

AGG is significantly cheaper at 0.03% vs 0.15% expense ratio, saving you approximately $238 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (0.0% vs -0.4%), tracking closely.

Key Metrics

Metric AGG IEF
Expense Ratio 0.03% 0.15%
Dividend Yield 3.9% 3.8%
Fund Family iShares iShares
Category US Aggregate Bond US Intermediate Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

75 81 87 93 99 105 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
IEF -15.9%

Performance Comparison

Period AGG IEF Difference
1 Month -1.67% -2.14% +0.47%
3 Months -0.85% -1.08% +0.23%
6 Months -1.18% -1.41% +0.23%
YTD -0.85% -1.08% +0.23%
1 Year +0.04% -0.38% +0.42%
3 Years -0.82% -4.38% +3.56%
5 Years -13.01% -15.92% +2.91%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees IEF Fees You Save
$10.000 10 years $60 $298 $238
$10.000 20 years $258 $1.278 $1.020
$10.000 30 years $835 $4.109 $3.274
$50.000 10 years $299 $1.490 $1.190
$50.000 30 years $4.176 $20.547 $16.371
$100.000 30 years $8.352 $41.094 $32.742

Risk Metrics

Based on 5 years of daily returns

Metric AGG IEF
Annualized Volatility 6.1% 7.7%
Max Drawdown -21.4% -24.7%
Sharpe Ratio -1.17 -1.00

Dividend Comparison

Metric AGG IEF
Annual Dividend (per share) $3.90 $3.65
Dividend Yield 3.94% 3.84%
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.

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