AGG alternatives and similar ETFs

AGG alternatives at a glance#

Each fund below can stand in for AGG, closest first. “Same index” funds hold the same bonds as AGG. “Same kind” funds hold the same kind of bonds through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How AGG and its alternatives did over the same dates#

Each row measures the alternative and AGG on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each AGG alternative, compared#

SCHZ: Schwab U.S. Aggregate Bond ETF#

SCHZ tracks the same Bloomberg US Aggregate Bond Index as AGG, so the two hold the same bonds. The main differences are the fee and the fund company.

It charges 0.03% a year, about $3 on $10,000, against $3 for AGG. It held 12,355 holdings, against 13,416 for AGG.

From July 2011 to October 2026, SCHZ returned about 1.9% a year and AGG returned about 2.0% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the SCHZ fund page for its returns by year and worst drop.

BND: Vanguard Total Bond Market ETF#

BND also holds a broad mix of US bonds: government, company and mortgage bonds. It tracks the Bloomberg U.S. Aggregate Float Adjusted Index, while AGG tracks the Bloomberg US Aggregate Bond Index.

It charges 0.03% a year, about $3 on $10,000, against $3 for AGG. It held 11,434 holdings, against 13,416 for AGG.

From April 2007 to October 2026, BND returned about 2.9% a year and AGG returned about 2.9% a year. Over about the last five years they moved almost exactly together (correlation 1.00).

Read AGG vs BND for the full side-by-side, or the BND fund page.

IUSB: iShares Core Universal USD Bond ETF#

IUSB also holds a broad mix of US bonds: government, company and mortgage bonds. It tracks the Bloomberg U.S. Universal Index, while AGG tracks the Bloomberg US Aggregate Bond Index.

It charges 0.06% a year, about $6 on $10,000, against $3 for AGG. It held 18,251 holdings, against 13,416 for AGG.

From June 2014 to October 2026, IUSB returned about 2.0% a year and AGG returned about 1.7% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the IUSB fund page for its returns by year and worst drop.

IEF: iShares 7-10 Year Treasury Bond ETF#

IEF is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while AGG holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.15% a year, about $15 on $10,000, against $3 for AGG. It held 17 holdings, against 13,416 for AGG.

From September 2003 to October 2026, IEF returned about 3.1% a year and AGG returned about 3.0% a year. Over about the last five years they moved almost exactly together (correlation 0.97).

Read the IEF fund page for its returns by year and worst drop.

VCIT: Vanguard Intermediate-Term Corporate Bond ETF#

VCIT is a looser match. It holds bonds from large US companies with strong credit ratings, while AGG holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.03% a year, about $3 on $10,000, against $3 for AGG. It held 2,342 holdings, against 13,416 for AGG.

From November 2009 to October 2026, VCIT returned about 4.0% a year and AGG returned about 2.3% a year. Over about the last five years they moved almost exactly together (correlation 0.96).

Read the VCIT fund page for its returns by year and worst drop.

VGIT: Vanguard Intermediate-Term Treasury ETF#

VGIT is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while AGG holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.03% a year, about $3 on $10,000, against $3 for AGG. It held 102 holdings, against 13,416 for AGG.

From November 2009 to October 2026, VGIT returned about 2.0% a year and AGG returned about 2.3% a year. Over about the last five years they moved almost exactly together (correlation 0.95).

Read the VGIT fund page for its returns by year and worst drop.

LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF#

LQD is a looser match. It holds bonds from large US companies with strong credit ratings, while AGG holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.14% a year, about $14 on $10,000, against $3 for AGG. It held 3,171 holdings, against 13,416 for AGG.

From September 2003 to October 2026, LQD returned about 3.9% a year and AGG returned about 3.0% a year. Over about the last five years they moved together on most days (correlation 0.94).

Read the LQD fund page for its returns by year and worst drop.

AGG versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to AGG from each other company on this page:

• Schwab: SCHZ, Schwab U.S. Aggregate Bond ETF (same index, 0.03% a year)
• Vanguard: BND, Vanguard Total Bond Market ETF (same kind of fund, 0.03% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between AGG and its alternatives#

• What it tracks. A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, AGG costs about $3 a year.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping AGG to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as BND, IUSB or IEF, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test AGG and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add AGG and SCHZ, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as AGG. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like AGG over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with AGG only on days both traded. Read what a backtest simulates for more on these measures.