What is the expense ratio of AGG vs VB?

AGG has an expense ratio of 0.03%, while VB has an expense ratio of 0.03%.

AGG vs VB

iShares Core US Aggregate Bond ETF vs Vanguard Small-Cap Index Fund ETF Shares

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

VB Vanguard

Vanguard Small-Cap Index Fund ETF Shares (VB) is an exchange-traded fund issued by Vanguard that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.33%. Launched in 2004, the fund has a 22-year track record.

AUM: $69.1B ER: 0.03% Yield: 1.33% Since: Jan 26, 2004

Quick Verdict

Over the past year, VB has significantly outperformed with a 18.4% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 1.3%).

Key Metrics

Metric	AGG	VB
Expense Ratio	0.03%	0.03%
Dividend Yield	3.9%	1.3%
Fund Family	iShares	Vanguard
Category	US Aggregate Bond	US Small Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

AGG -13.0%

VB +20.7%

Performance Comparison

Period	AGG	VB	Difference
1 Month	-1.67%	-5.50%	+3.83%
3 Months	-0.85%	+0.71%	-1.56%
6 Months	-1.18%	+2.15%	-3.33%
YTD	-0.85%	+0.71%	-1.56%
1 Year	+0.04%	+18.40%	-18.36%
3 Years	-0.82%	+39.02%	-39.84%
5 Years	-13.01%	+20.71%	-33.72%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	AGG Fees	VB Fees	You Save
$10.000	10 years	$60	$60	$0
$10.000	20 years	$258	$258	$0
$10.000	30 years	$835	$835	$0
$50.000	10 years	$299	$299	$0
$50.000	30 years	$4.176	$4.176	$0
$100.000	30 years	$8.352	$8.352	$0

Risk Metrics

Based on 5 years of daily returns

Metric	AGG	VB
Annualized Volatility	6.1%	20.8%
Max Drawdown	-21.4%	-28.8%
Sharpe Ratio	-1.17	0.07

Dividend Comparison

Metric	AGG	VB
Annual Dividend (per share)	$3.90	$3.50
Dividend Yield	3.94%	1.33%
Distribution Frequency	Monthly	Quarterly

Top Holdings

VB Top Holdings

Name	Weight
Sandisk CorporationSNDK	1.21%
Comfort Systems USA, Inc.FIX	0.65%
Lumentum Holdings Inc.LITE	0.64%
Ciena CorporationCIEN	0.64%
Coherent Corp.COHR	0.53%
Rocket Lab CorporationRKLB	0.48%
NRG Energy, Inc.NRG	0.44%
Bloom Energy CorporationBE	0.43%
EMCOR Group, Inc.EME	0.42%

Which One Should You Choose?

Choose VB 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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