ETF Versus

AGG vs SPY

iShares Core US Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust

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
SPY State Street

State Street SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund issued by State Street that provides exposure to large-cap U.S. equities across growth and value styles. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.13%. Launched in 1993, the fund has a 33-year track record.

AUM: $636.7B ER: 0.09% Yield: 1.13% Since: Jan 22, 1993

Quick Verdict

AGG has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. Over the past year, SPY has significantly outperformed with a 16.8% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 1.1%).

Key Metrics

Metric AGG SPY
Expense Ratio 0.03% 0.09%
Dividend Yield 3.9% 1.1%
Fund Family iShares State Street
Category US Aggregate Bond US Large Cap Blend

Performance Chart

Indexed to 100 at start (5-year comparison)

80 99 118 137 156 175 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
SPY +61.2%

Performance Comparison

Period AGG SPY Difference
1 Month -1.67% -4.54% +2.87%
3 Months -0.85% -4.09% +3.24%
6 Months -1.18% -2.09% +0.91%
YTD -0.85% -4.09% +3.24%
1 Year +0.04% +16.80% -16.76%
3 Years -0.82% +59.45% -60.27%
5 Years -13.01% +61.25% -74.26%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees SPY Fees You Save
$10.000 10 years $60 $179 $119
$10.000 20 years $258 $771 $512
$10.000 30 years $835 $2.486 $1.650
$50.000 10 years $299 $896 $597
$50.000 30 years $4.176 $12.428 $8.252
$100.000 30 years $8.352 $24.855 $16.503

Risk Metrics

Based on 5 years of daily returns

Metric AGG SPY
Annualized Volatility 6.1% 17.1%
Max Drawdown -21.4% -25.4%
Sharpe Ratio -1.17 0.38

Dividend Comparison

Metric AGG SPY
Annual Dividend (per share) $3.90 $7.38
Dividend Yield 3.94% 1.13%
Distribution Frequency Monthly Quarterly

Top Holdings

SPY Top Holdings

NameWeight
NVIDIA CorporationNVDA7.58%
Apple Inc.AAPL6.66%
Microsoft CorporationMSFT4.91%
Amazon.com, Inc.AMZN3.64%
Broadcom Inc.AVGO2.62%
Alphabet Inc.GOOG2.40%
Meta Platforms, Inc.META2.24%
Tesla, Inc.TSLA1.87%
Berkshire Hathaway Inc.BRK.B1.57%

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 SPY 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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