ETF Comparison

AGG vs BND: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF covering yield, cost, risk, and income potential.

Data updated August 19, 2026

Best for

AGGInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
BNDInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

AGG has outpaced BND over the trailing twelve months, posting a 2.98% total return against 2.54%. The lead holds up over 10 years too: AGG has compounded at 1.40% a year, against 1.35% for BND. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD	1Y	3Y	5Y	10Y	Since Apr 2007	Volatility	Sharpe	Sortino	Max drawdown
AGG	0.27%	2.98%	4.83%	-0.18%	1.40%	2.98%	5.3%	0.05	0.07	-4.8%
BND	-0.04%	2.54%	4.69%	-0.30%	1.35%	2.98%	5.2%	0.02	0.03	-4.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Apr 2007” measures every fund from April 10, 2007 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	AGG	BND
Full name	iShares Core U.S. Aggregate Bond ETF	Vanguard Total Bond Market ETF
Issuer	iShares	Vanguard
Last Close	$97.35 as of August 19, 2026	$72.22 as of August 19, 2026
Distribution yield	4.16%	4.18%
Distribution Safety Score™	100	100
Expense ratio	0.03%	0.03%
AUM	$138B	$162B
Distribution frequency	Monthly	Monthly
Underlying index	Bloomberg U.S. Aggregate Bond Index	Bloomberg U.S. Aggregate Float Adjusted Index
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	Track the Bloomberg U.S. Aggregate Float Adjusted Index for broad U.S. bond exposure.
Asset class	Fixed Income	Fixed Income
Inception date	09/22/2003	04/03/2007
Beta	0.99	0.98
Last dividend	$0.3376	$0.2515
Ex-dividend date	08/03/2026	08/03/2026

Bottom lineAGG and BND are both for investors who want fixed-income ballast that steadies the portfolio when stocks fall — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

Model this comparison:

Compare in my portfolio Forecast income Save to watchlist

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares

ETFs473

Total AUM$4710B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on AGG.

See all iShares ETFs

Vanguard

ETFs116

Total AUM$4703B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on BND.

See all Vanguard ETFs

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.

Compare in my portfolio Forecast income Save to watchlist

Quick verdict

AGG (iShares Core U.S. Aggregate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both monthly-pay dividend ETFs, but they take different approaches.

BND offers the higher yield at 4.18% vs 4.16% for AGG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They track different benchmarks: AGG is linked to Bloomberg U.S. Aggregate Bond Index while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, which means their performance drivers differ.

BND is the larger fund by assets ($162B), which generally means tighter spreads and better liquidity.

Still deciding? Track AGG & BND for free

Create a free Dividend Vision account to keep them on a watchlist, get notified when they declare dividends, and see how much income they would add to your portfolio.

Add to my watchlist See what a free account includes

Deep dive

Yield & income

On a $10,000 investment, AGG would generate roughly $34.67/month, while BND would produce $34.83/month, at current distribution rates. Both pay monthly distributions.

AGG yield4.16%

BND yield4.18%

Monthly diff on $10K$0.17

Cost & efficiency

Over 10 years on $10,000, AGG would cost approximately $30 in fees vs $30 for BND (simplified, not compounded). Both charge the same expense ratio.

AGG ER0.03%

BND ER0.03%

Strategy & risk

AGG tracks Bloomberg U.S. Aggregate Bond Index with a bonds approach, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach. Beta is 0.99 for AGG and 0.98 for BND — effectively similar market sensitivity.

AGG beta0.99

BND beta0.98

Fund details

AGG is managed by iShares (launched 09/22/2003) with $138B in assets. BND is managed by Vanguard (launched 04/03/2007) with $162B in assets.

AGG AUM$138B

BND AUM$162B

Ready to act?

Open in Comparator Model in portfolio See pricing

Frequently asked questions

What is the current distribution yield for AGG and BND?

AGG currently distributes 4.16% and BND 4.18%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is AGG or BND better for dividend income?

It depends on your goals. BND currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between AGG and BND?

AGG (iShares Core U.S. Aggregate Bond ETF) tracks Bloomberg U.S. Aggregate Bond Index with a bonds approach, while BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach. They are issued by iShares and Vanguard respectively.

Can I hold both AGG and BND?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is AGG or BND safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: AGG scores 100, BND scores 100. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, AGG or BND?

AGG and BND both charge the same expense ratio of 0.03%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in AGG vs BND generate?

At current rates, $10,000 in AGG would generate roughly $34.67 per month ($416.00 annually). The same in BND would produce about $34.83 per month ($418.00 annually).

Which has performed better historically, AGG or BND?

More comparisons to explore

People also compare AGG with

People also compare BND with

Popular comparisons

AGG vs BND — at a glance

Generated August 16, 2026.

Overview

AGG and BND are nearly identical broad-market U.S. bond ETFs tracking slightly different versions of the Bloomberg Aggregate Bond Index—AGG follows the standard index, while BND tracks the float-adjusted variant. Both offer monthly income, charge 0.03% in expenses, and hold the same core mix of Treasuries, investment-grade corporates, and mortgage-backed securities. The meaningful differences lie in index construction, fund size, and inception timing rather than strategy or cost.

How they differ

The biggest structural difference is their underlying indexes: AGG uses the Bloomberg U.S. Aggregate Bond Index (which includes all outstanding bonds), while BND uses the Bloomberg U.S. Aggregate Float Adjusted Index (which weights bonds by their available supply in the market). This typically results in BND holding slightly fewer issues but with similar sector and duration exposure. Their yields are nearly identical at 4.16% and 4.17%, respectively, and both distribute monthly. BND has a larger asset base at $162B versus AGG's $138B, which can translate to slightly tighter bid-ask spreads for BND, though both are highly liquid. The expense ratios are identical at 0.03%, so cost is a wash.

Who each is best for

AGG: Fits investors seeking the purest version of the full U.S. bond market, including every security the Bloomberg index captures, with a longer track record dating to 2003 for those valuing historical consistency.

BND: Designed for investors who prefer market-cap-weighted exposure based on what's actually tradeable in the market, plus the marginal benefit of a larger fund with slightly deeper liquidity and Vanguard's ownership structure.

Key risks to know

Duration and rate risk: Both ETFs are sensitive to interest rate moves at roughly the same degree (beta near 1.0), so rising rates will pressure NAV similarly across both funds.

Credit spread widening: Economic weakness could widen spreads on the corporate and securitized portions of both portfolios, though this risk is shared and comparable.

Index construction divergence: The float-adjustment methodology in BND may cause its holdings to drift from AGG's over time, particularly in illiquid or newly issued bonds, creating modest performance variance despite their similar mandates.

Reinvestment risk in a declining-rate environment: Monthly distributions paid from coupon income face reinvestment at lower yields if rates fall, though this affects both funds equally.

Bottom line

If you want the broadest possible index universe and value a longer inception date for performance history, AGG delivers that; if you prefer float-adjusted market-cap weighting and slightly larger fund scale, BND fills that role. The practical performance difference between them is likely to be negligible, making either a solid anchor for bond exposure. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Still deciding? Compare them against your own portfolio

See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.

Start Free Open in Comparator Browse Screener