# AGG vs BND: fees, holdings and returns compared

> AGG vs BND: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

AGG and BND both hold the broad US bond market: government, mortgage and company bonds. They track nearly the same index, so their returns have been very close. Over the same dates since April 2007, AGG returned about 2.9% a year and BND returned about 2.9% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- Both charge 0.03% a year.
- AGG started trading in September 2003. BND started in April 2007.
- Worst drops since 2007: AGG −18.4%, BND −18.6%.
- Daily correlation: 0.87 (1 means they always move together).

## What is the difference between AGG and BND?

AGG, from iShares, tracks the Bloomberg US Aggregate Bond Index. BND, from Vanguard, tracks a version of the same index that counts only bonds that are freely traded. In practice they hold very similar bonds, and the gap between them has been small. A bond fund's value falls when interest rates rise, as both did in 2022.

| Fact | AGG | BND |
| --- | --- | --- |
| Full name | iShares Core U.S. Aggregate Bond ETF | Vanguard Total Bond Market ETF |
| Issuer | iShares (BlackRock) | Vanguard |
| Expense ratio | 0.03% a year | 0.03% a year |
| Started trading | September 22, 2003 | April 3, 2007 |
| Tracks | Bloomberg US Aggregate Bond Index | Bloomberg U.S. Aggregate Float Adjusted Index |
| Holdings | 13,416 holdings as of October 15, 2026 | 11,434 holdings as of September 30, 2026 |
| Type | US bonds, ETF | US bonds, ETF |

Fund facts checked on the [iShares (BlackRock) AGG page](https://www.ishares.com/us/products/239458/ishares-core-u-s-aggregate-bond-etf) and the [Vanguard BND page](https://investor.vanguard.com/investment-products/etfs/profile/bnd).

## Is AGG or BND cheaper?

Both charge 0.03% a year. On $10,000, that is about $3 a year for AGG and $3 for BND. The fund takes its fee out of its own value a little each day, so you never get a bill.

## AGG vs BND performance over the same dates

Both funds are measured from April 2007 to October 2026, the dates both traded. AGG returned about 2.9% a year and BND returned about 2.9% a year. BND came out ahead over this period, which does not mean it will again.

| Measure | AGG | BND |
| --- | --- | --- |
| $10,000 grew to | $17,385 | $17,421 |
| Total return | 73.9% | 74.2% |
| Return per year (CAGR) | 2.9% | 2.9% |
| Worst drop from a high | −18.4% | −18.6% |
| Volatility (how much it swings) | 5.4% | 5.2% |
| Last 12 months | −1.8% | −1.7% |
| Last 3 years, per year | 4.8% | 4.7% |
| Last 5 years, per year | −0.4% | −0.4% |
| Last 10 years, per year | 1.3% | 1.4% |

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.

## AGG and BND returns by year

| Year | AGG | BND |
| --- | --- | --- |
| 2026 (part of the year) | −1.6% | −1.5% |
| 2025 | 7.2% | 7.1% |
| 2024 | 1.3% | 1.4% |
| 2023 | 5.7% | 5.7% |
| 2022 | −13.0% | −13.1% |
| 2021 | −1.8% | −1.9% |
| 2020 | 7.5% | 7.7% |
| 2019 | 8.5% | 8.8% |
| 2018 | 0.3% | 0.1% |
| 2017 | 3.5% | 4.0% |
| 2016 | 2.4% | 2.5% |
| 2015 | 0.5% | 0.6% |
| 2014 | 6.0% | 5.8% |
| 2013 | −2.0% | −2.1% |
| 2012 | 3.8% | 2.9% |
| 2011 | 7.7% | 7.9% |
| 2010 | 6.4% | 6.2% |
| 2009 | 3.0% | 3.6% |
| 2008 | 7.9% | 6.9% |
| 2007 (part of the year) | 5.4% | 6.1% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. AGG's worst fall was −18.4%, from August 4, 2020 to October 20, 2022. By October 16, 2026 it had not yet climbed back to that high.

BND's worst fall was −18.6%, from August 6, 2020 to October 20, 2022. By October 16, 2026 it had not yet climbed back to that high.

Their daily moves had a correlation of 0.87. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So they often move together, but not always.

## Why people choose AGG or BND

**AGG.** People who already use iShares funds often pick AGG.

**BND.** People who already use Vanguard funds often pick BND.

## Strategies that hold AGG or BND

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Vigilant Asset Allocation (VAA)](https://tactfolio.com/strategies/vigilant-asset-allocation.md), by Wouter Keller and JW Keuning, 2017 (holds AGG)
- [Dual Momentum: Antonacci’s Global Equities Momentum (GEM)](https://tactfolio.com/strategies/dual-momentum.md), by Gary Antonacci, 2014 (holds AGG)
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds AGG)
- [Baby Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/baby-bear-portfolio.md), by Brian Livingston, 2018 (holds AGG)
- [Diversified Dual Momentum (Newfound Research)](https://tactfolio.com/strategies/diversified-dual-momentum.md), by Corey Hoffstein (Newfound Research), 2019 (holds AGG)
- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds BND)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds BND)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds BND)
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019 (holds BND)
- [Three-Fund Portfolio (Taylor Larimore, Bogleheads)](https://tactfolio.com/strategies/three-fund-portfolio.md), by Taylor Larimore, 2018 (holds BND)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds BND)

## Other funds like AGG and BND

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [AGG alternatives](https://tactfolio.com/alternatives/AGG.md) and [BND alternatives](https://tactfolio.com/alternatives/BND.md).

## Test a mix of AGG and BND

Open the [builder](https://tactfolio.com/builder), add AGG and BND, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [AGG](https://tactfolio.com/etf/AGG.md) and [BND](https://tactfolio.com/etf/BND.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### Can a bond fund like AGG or BND lose money?

Yes. When interest rates rise, the bonds a fund already holds lose value. Both funds fell more than 10% in 2022, when rates rose fast.

### What is the difference between AGG and BND?

They track nearly the same bond index and charge the same fee. The difference is mainly the issuer: iShares for AGG and Vanguard for BND.

### Which is cheaper, AGG or BND?

Both charge 0.03% a year. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, AGG or BND?

From April 2007 to October 2026, AGG returned about 2.9% a year and BND returned about 2.9% a year, with dividends reinvested. Their worst drops were −18.4% and −18.6%. Past returns do not tell you what comes next.

## Sources

- [iShares (BlackRock): iShares Core U.S. Aggregate Bond ETF fund page](https://www.ishares.com/us/products/239458/ishares-core-u-s-aggregate-bond-etf)
- [Vanguard: Vanguard Total Bond Market ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/bnd)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.