ETF Versus

AGG vs SHY

iShares Core US Aggregate Bond ETF vs iShares 1-3 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
SHY iShares

iShares 1-3 Year Treasury Bond ETF (SHY) is an exchange-traded fund issued by iShares that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.76%. Launched in 2002, the fund has a 24-year track record.

AUM: $24.6B ER: 0.15% Yield: 3.76% 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 -0.2%), tracking closely.

Key Metrics

Metric AGG SHY
Expense Ratio 0.03% 0.15%
Dividend Yield 3.9% 3.8%
Fund Family iShares iShares
Category US Aggregate Bond US Short-Term Treasury

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%
SHY -4.5%

Performance Comparison

Period AGG SHY Difference
1 Month -1.67% -0.59% -1.08%
3 Months -0.85% -0.65% -0.20%
6 Months -1.18% -0.57% -0.61%
YTD -0.85% -0.65% -0.20%
1 Year +0.04% -0.19% +0.23%
3 Years -0.82% +0.29% -1.11%
5 Years -13.01% -4.51% -8.50%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees SHY 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 SHY
Annualized Volatility 6.1% 2.1%
Max Drawdown -21.4% -6.7%
Sharpe Ratio -1.17 -2.55

Dividend Comparison

Metric AGG SHY
Annual Dividend (per share) $3.90 $3.10
Dividend Yield 3.94% 3.76%
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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