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.
BND holds the edge across 3 of 5 key metrics in this comparison. BND has delivered stronger 1-year price return (-0.42% vs -0.43% for AGG).
- 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 scorei | 33.0 | 39.0 |
| Latest closei | $71.20 | $95.96 |
| 1M returni | -1.53% | -1.56% |
| 6M returni | -0.69% | -0.73% |
| 1Y returni | -0.42% | -0.43% |
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 | BND | AGG |
|---|---|---|
| 1Y ago | $10.37K (+3.7%) started 2025-09-18 | $10.37K (+3.7%) started 2025-09-18 |
| 5Y ago | $11.63K (+16.3%) started 2021-09-20 | $11.61K (+16.1%) started 2021-09-20 |
| 10Y ago | $16.27K (+62.7%) started 2016-09-19 | $15.88K (+58.8%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | BND | AGG |
|---|---|---|
| Expense ratioi | 0.03% | 0.03% |
| Total assets (AUM)i | $398.83B | $138.32B |
| Dividend yieldi | 4.04% | 4.05% |
| Trailing P/Ei | N/A | N/A |
| Betai | 0.26 | 0.27 |
| 52-week change | -0.42% | -0.43% |
| Metric | BND | AGG |
|---|---|---|
| 1Y returni | -0.42% | -0.43% |
| 6M returni | -0.69% | -0.73% |
| 1M returni | -1.53% | -1.56% |
| 1Y Sharpe ratio | -1.31 | -1.28 |
| Betai | 0.26 | 0.27 |
| Dividend yieldi | 4.04% | 4.05% |
| 5Y CAGR | -0.57% | -0.54% |
Over the past year, BND and AGG 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 | BND | AGG |
|---|---|---|---|
| 1Y | Growthi | -0.42% | -0.43% |
| CAGRi | -0.42% | -0.43% | |
| Volatilityi | 3.69% | 3.79% | |
| Sharpe ratioi | -1.31 | -1.28 | |
| Sortino ratioi | -1.71 | -1.66 | |
| Max drawdowni | 3.16% | 3.27% | |
| Current drawdowni | 3.04% | 3.11% | |
| Avg drawdowni | 1.06% | 1.08% | |
| Ulcer Indexi | 1.33% | 1.36% | |
| Max daily dropi | 0.80% | 0.83% | |
| Max wkly dropi | 1.10% | 1.17% | |
| 5Y | Growthi | -2.83% | -2.69% |
| CAGRi | -0.57% | -0.54% | |
| Volatilityi | 6.04% | 6.12% | |
| Sharpe ratioi | -0.81 | -0.79 | |
| Sortino ratioi | -1.10 | -1.08 | |
| Max drawdowni | 17.78% | 17.66% | |
| Current drawdowni | 3.04% | 3.11% | |
| Avg drawdowni | 7.62% | 7.51% | |
| Ulcer Indexi | 8.97% | 8.85% | |
| Max daily dropi | 1.62% | 1.64% | |
| Max wkly dropi | 3.50% | 3.48% | |
| 10Y | Growthi | +14.88% | +14.24% |
| CAGRi | +1.40% | +1.34% | |
| Volatilityi | 5.54% | 5.43% | |
| Sharpe ratioi | -0.53 | -0.56 | |
| Sortino ratioi | -0.72 | -0.74 | |
| Max drawdowni | 18.58% | 18.43% | |
| Current drawdowni | 3.86% | 3.68% | |
| Avg drawdowni | 4.96% | 4.84% | |
| Ulcer Indexi | 6.99% | 6.88% | |
| Max daily dropi | 5.44% | 4.00% | |
| Max wkly dropi | 8.05% | 7.10% |
| Category | BND | AGG |
|---|---|---|
| Fund name | Vanguard Total Bond Market Index Fund ETF Shares | iShares Core U.S. Aggregate Bond ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.03% | 0.03% |
| Total assets (AUM)i | $398.83B | $138.32B |
| Dividend yieldi | 4.04% | 4.05% |
- 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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