ETF Versus

AGG vs BND

iShares Core U.S. Aggregate Bond ETF vs Vanguard Total Bond Market Index Fund

Last updated: 2026-04-10

AGG

iShares Core U.S. Aggregate Bond ETF (AGG) is an exchange-traded fund 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 3.93%. Launched in 2003, the fund has a 23-year track record.

AUM: $135.6B ER: 0.03% Yield: 3.93% Since: Sep 22, 2003
BND

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund 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 3.91%. Launched in 2007, the fund has a 19-year track record.

AUM: $152.0B ER: 0.03% Yield: 3.91% Since: Apr 3, 2007

Quick Verdict

Both funds have delivered similar 1-year returns (2.4% vs 2.3%), tracking closely.

Key Metrics

Metric AGG BND
Expense Ratio 0.03% 0.03%
Dividend Yield 3.9% 3.9%
Fund Family N/A N/A
Category US Aggregate Bond US Aggregate Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-07 2023-10 2024-12 2026-04
AGG -12.8%
BND -13.2%

Performance Comparison

Period AGG BND Difference
1 Month -0.17% -0.19% +0.02%
3 Months -0.62% -0.63% +0.01%
6 Months -1.12% -1.19% +0.07%
YTD -0.36% -0.39% +0.03%
1 Year +2.42% +2.29% +0.13%
3 Years -0.32% -0.30% -0.02%
5 Years -12.84% -13.16% +0.32%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees BND 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 BND
Annualized Volatility 6.1% 6.0%
Max Drawdown -21.4% -21.7%
Sharpe Ratio -1.16 -1.18

Dividend Comparison

Metric AGG BND
Annual Dividend (per share) $3.91 $2.89
Dividend Yield 3.93% 3.91%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Either works if...

you just need broad us aggregate bond exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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