AGG vs BND Stock Comparison: AI Score, Valuation, Performance and Upside
AGG (iShares Core US Aggregate Bond ETF) and BND (Vanguard Total Bond Market ETF) are functionally interchangeable core investment-grade bond ETFs — both track essentially the same Bloomberg US Aggregate Bond Index composition, both charge 0.03% expense ratios, both have similar interest rate duration (~6-7 years), and both provide the same diversified exposure to U.S. Treasuries, mortgage-backed securities, and investment-grade corporate bonds. The practical choice between AGG and BND is almost entirely a matter of brokerage preference (AGG for iShares/BlackRock ecosystem users, BND for Vanguard users).
AGG vs BND is two nearly identical core U.S. investment-grade bond ETFs at identical cost — iShares/BlackRock's AGG with slightly higher AUM and trading liquidity versus Vanguard's BND with the investor-owned governance structure alignment and three-fund portfolio integration — effectively the same product in two different packaging.
AGG and BND are closely matched — they split the tracked metrics evenly. BND has delivered stronger 1-year price return (-0.86% vs -0.90% for AGG).
- Use iShares ETFs across their portfolio (AGG, IVV, IEFA) and prefer BlackRock's iShares ecosystem for portfolio consistency or advisor-managed accounts that default to iShares products
- Need maximum bond ETF liquidity for large institutional trades or frequent rebalancing — AGG's slightly higher trading volume provides marginally tighter bid-ask spreads for large transactions
- Invest through a brokerage where AGG is commission-free or has lower transaction costs than BND
- Build a Vanguard three-fund portfolio (VTI + VXUS + BND) as the classic bond allocation component — BND pairs naturally with VTI and VXUS for a complete, low-cost diversified portfolio
- Value Vanguard's investor-owned structure as providing long-term governance alignment toward cost minimization that a profit-driven asset manager cannot structurally match
- Invest at Vanguard brokerage where BND is commission-free and integrates with Vanguard's portfolio analysis and tax-loss harvesting tools
| Metric | AGG | BND |
|---|---|---|
| ETF scorei | 24.4 | 24.4 |
| Latest closei | $95.94 | $71.20 |
| 1M returni | +1.79% | +1.80% |
| 3M returni | -1.42% | -1.37% |
| 6M returni | -1.53% | -1.44% |
| 1Y returni | -0.90% | -0.86% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AGG | BND |
|---|---|---|
| 1Y ago | $10.29K (+2.9%) started 2025-11-03 | $10.29K (+2.9%) started 2025-11-03 |
| 5Y ago | $11.67K (+16.7%) started 2021-11-04 | $11.68K (+16.8%) started 2021-11-04 |
| 10Y ago | $15.81K (+58.1%) started 2016-11-04 | $16.2K (+62.0%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | AGG | BND |
|---|---|---|
| Expense ratioi | 0.03% | 0.03% |
| Total assets (AUM)i | $135.65B | $389.05B |
| Dividend yieldi | 4.19% | 4.17% |
| Trailing P/Ei | N/A | N/A |
| Betai | -0.10 | 0.27 |
| 52-week change | -0.90% | -0.86% |
| Metric | AGG | BND |
|---|---|---|
| 1Y returni | -0.90% | -0.86% |
| 6M returni | -1.53% | -1.44% |
| 3M returni | -1.42% | -1.37% |
| 1M returni | +1.79% | +1.80% |
| 1Y Sharpe ratio | -1.31 | -1.33 |
| Betai | -0.10 | 0.27 |
| Dividend yieldi | 4.19% | 4.17% |
| 5Y CAGR | -0.38% | -0.42% |
Over the past year, AGG and BND have moved strongly in the same direction (correlation of 0.99), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AGG | BND |
|---|---|---|---|
| 1Y | Growthi | -0.90% | -0.86% |
| CAGRi | -0.90% | -0.86% | |
| Volatilityi | 4.05% | 3.96% | |
| Sharpe ratioi | -1.31 | -1.33 | |
| Sortino ratioi | -1.71 | -1.74 | |
| Max drawdowni | 4.96% | 4.83% | |
| Current drawdowni | 3.14% | 3.04% | |
| Avg drawdowni | 1.51% | 1.48% | |
| Ulcer Indexi | 1.93% | 1.88% | |
| Max daily dropi | 0.87% | 0.84% | |
| Max wkly dropi | 1.71% | 1.65% | |
| 5Y | Growthi | -1.90% | -2.09% |
| CAGRi | -0.38% | -0.42% | |
| Volatilityi | 6.15% | 6.07% | |
| Sharpe ratioi | -0.76 | -0.78 | |
| Sortino ratioi | -1.04 | -1.06 | |
| Max drawdowni | 17.31% | 17.38% | |
| Current drawdowni | 3.14% | 3.04% | |
| Avg drawdowni | 7.25% | 7.31% | |
| Ulcer Indexi | 8.57% | 8.64% | |
| Max daily dropi | 1.64% | 1.62% | |
| Max wkly dropi | 3.48% | 3.50% | |
| 10Y | Growthi | +14.27% | +15.00% |
| CAGRi | +1.34% | +1.41% | |
| Volatilityi | 5.45% | 5.56% | |
| Sharpe ratioi | -0.55 | -0.53 | |
| Sortino ratioi | -0.74 | -0.71 | |
| Max drawdowni | 18.43% | 18.58% | |
| Current drawdowni | 3.70% | 3.86% | |
| Avg drawdowni | 4.85% | 4.95% | |
| Ulcer Indexi | 6.89% | 7.00% | |
| Max daily dropi | 4.00% | 5.44% | |
| Max wkly dropi | 7.10% | 8.05% |
| Category | AGG | BND |
|---|---|---|
| Fund name | iShares Core U.S. Aggregate Bond ETF | Vanguard Total Bond Market Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.03% | 0.03% |
| Total assets (AUM)i | $135.65B | $389.05B |
| Dividend yieldi | 4.19% | 4.17% |
- Comprehensive investment-grade bond market exposure in one ETF — AGG provides diversified exposure to the entire U.S. investment-grade bond market including Treasuries, MBS, and corporate bonds in proportions matching the overall market
- High liquidity with tight bid-ask spreads — AGG trades billions of dollars daily with institutional trading activity; this liquidity enables large institutional purchases and sales without significant price impact
- iShares brand and BlackRock's fixed income expertise — BlackRock is the world's largest asset manager with extensive fixed income portfolio management experience and extensive securities lending that can minimize AGG's net cost
- Vanguard investor-owned structure drives persistent cost minimization — Vanguard's unique structure creates structural incentive to keep costs low forever, not just when competing with BlackRock; this alignment between fund manager and investor interests is a long-term governance advantage
- Nearly identical portfolio to AGG with equivalent cost — BND and AGG are practically interchangeable; both track Bloomberg Aggregate variations at 0.03%; the choice is primarily about fund family preference
- Massive scale enabling low transaction costs — BND's $300B+ in combined assets provides Vanguard negotiating leverage for bond trading transaction costs and enables efficient portfolio management
- Duration risk — AGG's ~6-7 year duration means a 1% rise in interest rates causes approximately 6-7% price decline; investors holding AGG in a rising rate environment experience mark-to-market losses that recover only as the portfolio rolls to higher-yielding bonds over time
- Mortgage-backed securities complexity — AGG's ~27% MBS allocation introduces prepayment risk (homeowners refinance when rates fall, reducing MBS duration just when investors want longer duration) and credit exposure to government-sponsored enterprises
- Corporate bond credit risk — AGG's investment-grade corporate bond allocation (~24%) can underperform in credit stress periods when corporate bond spreads widen
- Duration risk is identical to AGG — BND's ~6-7 year duration creates the same interest rate sensitivity as AGG; rising rates cause temporary mark-to-market losses that recover over the duration period
- Float-adjusted index creates minor portfolio differences from AGG — BND's Bloomberg Float Adjusted benchmark versus AGG's Bloomberg Aggregate creates very minor composition differences primarily in Treasury holdings; practically irrelevant for most investors
- Bond market liquidity in stress periods — in market stress events (COVID March 2020, October 2023 rate spike), even high-quality bond ETFs like AGG and BND can see bid-ask spreads widen and brief premiums/discounts to NAV
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