BND vs AGG Stock Comparison: AI Score, Valuation, Performance and Upside
BND and AGG are functionally nearly identical — both track the Bloomberg US Aggregate Bond Index (with minor variations), both have 0.03% expense ratios, and both provide broad investment-grade bond market exposure. The practical differences are minimal for retail investors. AGG has more institutional trading volume; BND is backed by Vanguard's ownership structure. Either is an excellent choice.
BND vs AGG is a distinction without a meaningful difference for most investors — choose based on broker (Vanguard clients may prefer BND for commission-free trading; Fidelity and Schwab clients may prefer AGG) rather than any fundamental portfolio consideration.
AGG holds the edge across 3 of 5 key metrics in this comparison. AGG has delivered stronger 1-year price return (+4.83% vs +4.73% for BND).
- →hold Vanguard accounts and want commission-free trading on their bond allocation
- →value Vanguard's ownership structure and mission-aligned investor governance
- →want broad US investment-grade bond exposure at the lowest possible cost
- →prefer Vanguard's ETF ecosystem for consistency with their equity holdings (VTI, VXUS, VOO)
- →hold Fidelity, Schwab, or other broker accounts with commission-free AGG trading
- →need bond ETF options liquidity for institutional hedging or tactical management
- →prefer iShares/BlackRock's ETF ecosystem alongside other iShares holdings
- →want the world's largest bond ETF for maximum liquidity in large position sizes
| Metric | BND | AGG |
|---|---|---|
| ETF score | 51.0 | 59.0 |
| Latest close | $73.34 | $98.90 |
| 1M return | +1.57% | +1.64% |
| 6M return | +0.76% | +0.81% |
| 1Y return | +4.73% | +4.83% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | BND | AGG |
|---|---|---|
| 1Y ago | $10.9K (+9.0%) started 2025-06-18 | $10.91K (+9.1%) started 2025-06-18 |
| 5Y ago | $11.92K (+19.2%) started 2021-06-18 | $11.9K (+19.0%) started 2021-06-18 |
| 10Y ago | $16.61K (+66.1%) started 2016-06-20 | $16.22K (+62.2%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | BND | AGG |
|---|---|---|
| Expense ratio | 0.03% | 0.03% |
| Total assets (AUM) | $394.43B | $136.46B |
| Dividend yield | 3.94% | 3.96% |
| Trailing P/E | N/A | 126.15 |
| Beta | 0.25 | 0.25 |
| 52-week change | 4.73% | 4.83% |
| Metric | BND | AGG |
|---|---|---|
| 1Y return | +4.73% | +4.83% |
| 6M return | +0.76% | +0.81% |
| 1M return | +1.57% | +1.64% |
| 1Y Sharpe ratio | 0.06 | 0.08 |
| Beta | 0.25 | 0.25 |
| Dividend yield | 3.94% | 3.96% |
| 5Y CAGR | +0.04% | +0.08% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | BND | AGG |
|---|---|---|---|
| 1Y | Growth | +4.73% | +4.83% |
| CAGR | +4.73% | +4.84% | |
| Sharpe ratio | 0.06 | 0.08 | |
| Max drawdown | 2.68% | 2.76% | |
| Max daily drop | 0.80% | 0.83% | |
| Max wkly drop | 1.10% | 1.17% | |
| 5Y | Growth | +0.19% | +0.38% |
| CAGR | +0.04% | +0.08% | |
| Sharpe ratio | -0.71 | -0.70 | |
| Max drawdown | 17.91% | 17.82% | |
| Max daily drop | 1.62% | 1.64% | |
| Max wkly drop | 3.50% | 3.48% | |
| 10Y | Growth | +17.99% | +17.42% |
| CAGR | +1.67% | +1.62% | |
| Sharpe ratio | -0.49 | -0.51 | |
| Max drawdown | 18.58% | 18.43% | |
| Max daily drop | 5.44% | 4.00% | |
| Max wkly drop | 8.05% | 7.10% |
| Category | BND | AGG |
|---|---|---|
| Fund name | Vanguard Total Bond Market Index Fund | iShares Core U.S. Aggregate Bond ETF |
| Type | ETF | ETF |
| Expense ratio | 0.03% | 0.03% |
| Total assets (AUM) | $394.43B | $136.46B |
| Dividend yield | 3.94% | 3.96% |
- →0.03% expense ratio is among the lowest for any broad bond market ETF
- →Broad diversification across 10,000+ bonds in US investment-grade market
- →Vanguard ownership structure aligns fund economics with long-term investor interests
- →Largest bond ETF in the world with outstanding institutional liquidity
- →0.03% expense ratio matches BND for cost efficiency
- →Tracks a slightly different index than BND (non-float-adjusted) with minimal practical difference
- →Investment-grade bond returns are highly sensitive to interest rate movements given ~6 year duration
- →Credit risk is low but not zero — corporate bond component has some default risk
- →Inflation erodes real bond returns in sustained inflationary periods
- →Index difference from BND is minimal — investors should not overweight this distinction
- →Both BND and AGG have essentially the same interest rate and credit risk profile
- →Bond ETF returns are driven almost entirely by interest rate environment, not ETF selection
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