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ETF Comparison

BND vs AGG: Same Bond Market, Two Issuers

A head-to-head of iShares Core U.S. Aggregate Bond and Vanguard Total Bond Market covering index rules, fees, and scale.

Updated October 2, 2026

How these figures are calculated: methodology.

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.

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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

AGG has lagged BND over the trailing twelve months, posting a -2.07% total return against -2.04%. The picture flips over 10 years, though — AGG has compounded at 1.12% a year, ahead of BND at 1.10%. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Apr 2007Volatility Sharpe Sortino Max drawdown
AGG-2.71%-2.07%4.33%-0.67%1.12%2.80%5.2%-0.05-0.07-4.8%
BND-2.63%-2.04%4.29%-0.71%1.10%2.82%5.1%-0.06-0.08-4.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Apr 2007” measures every fund from April 10, 2007 — the start of shared available history — 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.
MetricAGGBND
Full nameiShares Core U.S. Aggregate Bond ETFVanguard Total Bond Market ETF
IssueriSharesVanguard
Underlying indexBloomberg U.S. Aggregate Bond IndexBloomberg U.S. Aggregate Float Adjusted Index
Last Close$94.25 as of October 2, 2026$69.94 as of October 2, 2026
Distribution rate4.25%4.26%
Trailing 12-month yield4.21%4.20%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 4.25%4.26%
Expense ratio0.03%0.03%
AUM$137B$162B
Distribution frequencyMonthlyMonthly
ObjectiveProvide 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 classFixed IncomeFixed Income
Inception date09/22/200304/03/2007
Beta0.990.98
Last dividend$0.33414 declared, pays 10/06/2026$0.2485 declared, pays 10/05/2026
Ex-dividend date10/01/202610/01/2026

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.

BND vs AGG: same bond market, two wrappers

Both track US investment-grade bonds. Index float rules, fee, and issuer are the live differences.

AGGBND
IndexBloomberg U.S. Aggregate Bond IndexBloomberg U.S. Aggregate Float Adjusted Index
Expense ratio0.03%0.03%
Fund size$137B$162B
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See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs466
Total AUM$4683B

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$4676B

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

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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 4.26% vs 4.25% for AGG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

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

BND is the larger fund by assets ($162B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, AGG would generate roughly $35.42 cash per distribution, while BND would produce $35.50 cash per distribution, at current distribution rates. Both pay monthly distributions.

AGG yield4.25%
BND yield4.26%
Cash diff on $10K$0.08

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 $137B in assets. BND is managed by Vanguard (launched 04/03/2007) with $162B in assets.

AGG AUM$137B
BND AUM$162B
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Frequently asked questions

What is the difference between BND and AGG?

Both track the US investment-grade bond market. AGG (iShares Core U.S. Aggregate Bond ETF) follows Bloomberg U.S. Aggregate Bond Index. BND (Vanguard Total Bond Market ETF) follows Bloomberg U.S. Aggregate Float Adjusted Index. Cost is 0.03% versus 0.03%; size is $137B versus $162B. Distributions are 4.25% and 4.26% as of October 2026. Issuer, fee, and float rules — not a yield race.

What is the current distribution rate for AGG and BND?

AGG currently distributes 4.25% and BND 4.26%, based on fund data updated October 2026. Distribution rate 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.

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 $35.42 cash per distribution ($425.00 annually). The same in BND would produce about $35.50 cash per distribution ($426.00 annually).

Which has performed better historically, AGG or BND?

AGG has lagged BND over the trailing twelve months, posting a -2.07% total return against -2.04%. The picture flips over 10 years, though — AGG has compounded at 1.12% a year, ahead of BND at 1.10%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

AGG vs BND — at a glance

Generated October 3, 2026.

Overview

AGG and BND are both broad-market U.S. bond ETFs tracking variants of the Bloomberg Aggregate Bond Index. They hold nearly identical portfolios—Treasuries, investment-grade corporates, and mortgage-backed securities—but BND uses a float-adjusted methodology while AGG uses the standard index. The funds are functionally interchangeable for most investors, with nearly identical costs and yields.

How they differ

The single largest difference is their underlying index methodology: BND tracks the Bloomberg U.S. Aggregate Float Adjusted Index, which weights holdings by market capitalization adjusted for free float, while AGG tracks the standard Bloomberg U.S. Aggregate Bond Index. In practice, this creates only marginal differences in sector and security weighting. Both charge 0.03%, distribute 4.25% annually, and pay monthly. BND holds $162B in assets versus $137B for AGG, making BND the larger fund. Their betas are virtually identical (0.98 vs. 0.99), confirming they move with broad bond market conditions at nearly the same rate.

Who each is best for

  • AGG: Fits investors seeking the original Bloomberg Aggregate methodology and the fund's longer track record, which extends back to 09/22/2003.

Key risks to know

  • Interest rate sensitivity. Both funds have duration exposure aligned with the broad U.S. bond market; rising rates will compress NAV, and falling rates will expand it. A 1% rate increase typically erodes aggregate bond fund values by 5–7%.
  • Credit spread risk. The corporate and mortgage-backed portions (roughly 30–40% of holdings) are sensitive to credit conditions. Widening spreads during recessions or financial stress compress returns independent of Treasury moves.
  • Index concentration overlap. Both funds hold the same core securities (Treasuries dominate; the top issuer is the U.S. government across all maturities). Their exposures will move nearly in lockstep; holding both adds minimal diversification benefit and should be verified against your overall portfolio overlap. The practical difference between them is negligible for most investors—the real choice hinges on platform preference and existing fund relationships rather than performance or fee gaps.

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.

Bond fund basics How to read a fund's stats Why total return beats chasing yield

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These comparisons follow the Dividend Vision methodology.