ETF Versus

AGG vs IYR

iShares Core US Aggregate Bond ETF vs iShares U.S. Real Estate 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
IYR iShares

iShares U.S. Real Estate ETF (IYR) is an exchange-traded fund issued by iShares that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges an above-average expense ratio of 0.38%. The fund offers a moderate dividend yield of 2.37%. Launched in 2000, the fund has a 26-year track record.

AUM: $3.9B ER: 0.38% Yield: 2.37% Since: Jun 12, 2000

Quick Verdict

AGG is significantly cheaper at 0.03% vs 0.38% expense ratio, saving you approximately $688 per $10,000 invested over 10 years. AGG has edged ahead over the past year (0.0% vs -1.0%). Income investors may prefer AGG for its higher yield (3.9% vs 2.4%).

Key Metrics

Metric AGG IYR
Expense Ratio 0.03% 0.38%
Dividend Yield 3.9% 2.4%
Fund Family iShares iShares
Category US Aggregate Bond US Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 85 95 105 115 125 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
IYR +1.0%

Performance Comparison

Period AGG IYR Difference
1 Month -1.67% -6.56% +4.89%
3 Months -0.85% +0.95% -1.80%
6 Months -1.18% -2.23% +1.05%
YTD -0.85% +0.95% -1.80%
1 Year +0.04% -0.97% +1.01%
3 Years -0.82% +12.64% -13.46%
5 Years -13.01% +0.99% -14.00%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees IYR Fees You Save
$10.000 10 years $60 $748 $688
$10.000 20 years $258 $3.173 $2.914
$10.000 30 years $835 $10.097 $9.262
$50.000 10 years $299 $3.739 $3.439
$50.000 30 years $4.176 $50.486 $46.310
$100.000 30 years $8.352 $100.972 $92.620

Risk Metrics

Based on 5 years of daily returns

Metric AGG IYR
Annualized Volatility 6.1% 18.8%
Max Drawdown -21.4% -36.9%
Sharpe Ratio -1.17 -0.13

Dividend Comparison

Metric AGG IYR
Annual Dividend (per share) $3.90 $2.25
Dividend Yield 3.94% 2.37%
Distribution Frequency Monthly Quarterly

Top Holdings

IYR Top Holdings

NameWeight
Welltower Inc.WELL10.03%
Prologis, Inc.PLD9.11%
Equinix, Inc.EQIX4.68%
Digital Realty Trust, Inc.DLR4.59%
Simon Property Group, Inc.SPG4.50%
Realty Income CorporationO4.44%
American Tower CorporationAMT4.39%
Public StoragePSA3.40%
Ventas, Inc.VTR3.15%
CBRE Group, Inc.CBRE3.10%

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 AGG if...

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

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