ETF Versus

AGG vs VXUS

iShares Core US Aggregate Bond ETF vs Vanguard Total International Stock 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
VXUS Vanguard

Vanguard Total International Stock Index Fund ETF Shares (VXUS) is an exchange-traded fund issued by Vanguard that provides exposure to international stocks across both developed and emerging markets. It charges a very low expense ratio of 0.05%. The fund offers an attractive dividend yield of 2.93%. Launched in 2011, the fund has a 15-year track record.

AUM: $129.4B ER: 0.05% Yield: 2.93% Since: Jan 26, 2011

Quick Verdict

AGG has a slightly lower expense ratio (0.03% vs 0.05%), saving about $40 per $10,000 over 10 years. Over the past year, VXUS has significantly outperformed with a 25.3% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 2.9%).

Key Metrics

Metric AGG VXUS
Expense Ratio 0.03% 0.05%
Dividend Yield 3.9% 2.9%
Fund Family iShares Vanguard
Category US Aggregate Bond International Equity

Performance Chart

Indexed to 100 at start (5-year comparison)

70 83 96 109 122 135 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
VXUS +21.4%

Performance Comparison

Period AGG VXUS Difference
1 Month -1.67% -5.33% +3.66%
3 Months -0.85% +1.92% -2.77%
6 Months -1.18% +4.49% -5.67%
YTD -0.85% +1.92% -2.77%
1 Year +0.04% +25.26% -25.22%
3 Years -0.82% +40.28% -41.10%
5 Years -13.01% +21.42% -34.43%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees VXUS Fees You Save
$10.000 10 years $60 $100 $40
$10.000 20 years $258 $430 $171
$10.000 30 years $835 $1.388 $553
$50.000 10 years $299 $499 $199
$50.000 30 years $4.176 $6.941 $2.765
$100.000 30 years $8.352 $13.882 $5.531

Risk Metrics

Based on 5 years of daily returns

Metric AGG VXUS
Annualized Volatility 6.1% 15.9%
Max Drawdown -21.4% -32.7%
Sharpe Ratio -1.17 0.04

Dividend Comparison

Metric AGG VXUS
Annual Dividend (per share) $3.90 $2.29
Dividend Yield 3.94% 2.93%
Distribution Frequency Monthly Quarterly

Top Holdings

VXUS Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/23303.43%
Samsung Electronics Co., Ltd.!krx/0059301.59%
ASML Holding N.V.!ams/ASML1.29%
Tencent Holdings Limited!hkg/07000.92%
SK hynix Inc.!krx/0006600.91%
Roche Holding AGROC1.L0.76%
Alibaba Group Holding Limited!hkg/99880.73%
Novartis AG!swx/NOVN0.73%
HSBC Holdings plc!lon/HSBA0.73%

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 VXUS 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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