# AGG ETF: fees, returns, drawdowns and holdings

> What AGG holds, its 0.03% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

iShares Core U.S. Aggregate Bond ETF (AGG) is an exchange-traded fund (ETF) run by iShares (BlackRock). This fund holds thousands of investment grade US bonds, including government bonds, mortgage bonds and company bonds. It charges 0.03% a year. From September 2003 to October 2026 it returned about 3.0% a year, and its worst drop was −18.4%.

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

- Expense ratio: 0.03% a year (about $3 on $10,000).
- Started trading on September 22, 2003.
- Worst drop since 2003: −18.4%.
- 5 Tactfolio classic strategies hold it.

## What does AGG hold?

This fund holds thousands of investment grade US bonds, including government bonds, mortgage bonds and company bonds. It aims to match the broad US bond market. It pays out interest income each month, and its price usually falls when interest rates rise.

It tracks the Bloomberg US Aggregate Bond Index. It had 13,416 holdings as of October 15, 2026, according to iShares (BlackRock).

| Fact | AGG |
| --- | --- |
| Full name | iShares Core U.S. Aggregate Bond ETF |
| Issuer | iShares (BlackRock) |
| Expense ratio | 0.03% a year |
| Started trading | September 22, 2003 |
| Tracks | Bloomberg US Aggregate Bond Index |
| Type | US bonds, ETF |
| Holdings | 13,416 holdings as of October 15, 2026 |
| Facts checked | October 16, 2026 on the [iShares (BlackRock) fund page](https://www.ishares.com/us/products/239458/ishares-core-u-s-aggregate-bond-etf) |

## What is the AGG expense ratio?

AGG charges 0.03% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.03% fee comes to about $3 a year.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## How has AGG done since 2003?

From September 2003 to October 2026, AGG returned about 3.0% a year. Say you put in $10,000 at the start. It would have been worth about $19,568 at the end, with every dividend reinvested.

| Measure | AGG |
| --- | --- |
| Total return | 95.7% |
| Return per year (CAGR) | 3.0% |
| Worst drop from a high | −18.4% |
| Volatility (how much it swings) | 5.2% |
| Last 12 months | −1.8% |
| Last 3 years, per year | 4.8% |
| Last 5 years, per year | −0.4% |
| Last 10 years, per year | 1.3% |

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 returns by year

| Year | AGG return |
| --- | --- |
| 2026 (part of the year) | −1.6% |
| 2025 | 7.2% |
| 2024 | 1.3% |
| 2023 | 5.7% |
| 2022 | −13.0% |
| 2021 | −1.8% |
| 2020 | 7.5% |
| 2019 | 8.5% |
| 2018 | 0.3% |
| 2017 | 3.5% |
| 2016 | 2.4% |
| 2015 | 0.5% |
| 2014 | 6.0% |
| 2013 | −2.0% |
| 2012 | 3.8% |
| 2011 | 7.7% |
| 2010 | 6.4% |
| 2009 | 3.0% |
| 2008 | 7.9% |
| 2007 | 6.6% |
| 2006 | 3.9% |
| 2005 | 2.3% |
| 2004 | 3.8% |
| 2003 (part of the year) | 0.9% |

## What was AGG's worst drop?

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.

The chart shows how far below its last high the fund was on each day. Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## Which Tactfolio strategies hold AGG?

5 classic strategies hold AGG 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
- [Dual Momentum: Antonacci’s Global Equities Momentum (GEM)](https://tactfolio.com/strategies/dual-momentum.md), by Gary Antonacci, 2014
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018
- [Baby Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/baby-bear-portfolio.md), by Brian Livingston, 2018
- [Diversified Dual Momentum (Newfound Research)](https://tactfolio.com/strategies/diversified-dual-momentum.md), by Corey Hoffstein (Newfound Research), 2019

## How does AGG compare with similar ETFs?

Side-by-side pages measure both funds over the same dates:

- [AGG vs BND](https://tactfolio.com/etf-comparisons/agg-vs-bnd.md): two total US bond market funds.

Funds that can stand in for AGG:

- [SCHZ](https://tactfolio.com/etf/schz.md): Schwab U.S. Aggregate Bond ETF, 0.03% a year
- [BND](https://tactfolio.com/etf/bnd.md): Vanguard Total Bond Market ETF, 0.03% a year
- [IUSB](https://tactfolio.com/etf/iusb.md): iShares Core Universal USD Bond ETF, 0.06% a year
- [VGIT](https://tactfolio.com/etf/vgit.md): Vanguard Intermediate-Term Treasury ETF, 0.03% a year

See [all 7 AGG alternatives](https://tactfolio.com/alternatives/agg.md), compared on the same dates as AGG.

## Test AGG in your own rules

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](https://tactfolio.com/builder), add AGG, and see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for AGG. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns.

Fund facts come from iShares (BlackRock). We checked them on October 16, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.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

### What is the expense ratio of AGG?

AGG charges 0.03% a year, according to iShares (BlackRock) as of October 16, 2026. That is about $3 a year for every $10,000 you hold.

### When did AGG start trading?

AGG started trading on September 22, 2003. It is run by iShares (BlackRock).

### What does AGG track?

AGG tracks the Bloomberg US Aggregate Bond Index. This fund holds thousands of investment grade US bonds, including government bonds, mortgage bonds and company bonds.

### How much has AGG returned per year?

From September 2003 to October 2026, AGG returned about 3.0% a year with dividends reinvested. Its worst drop was −18.4%. Past returns do not tell you what it will do next.

### Which strategies use AGG?

5 of Tactfolio's classic strategies hold AGG, including Vigilant Asset Allocation (VAA), Dual Momentum: Antonacci’s Global Equities Momentum (GEM), Papa Bear Portfolio (Muscular Portfolios).

## 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)

> 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.