ETF Comparison

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

A side-by-side comparison of iShares Core U.S. Aggregate Bond ETF, Vanguard Total Bond Market ETF, iShares iBoxx $ Investment Grade Corporate Bond ETF and Vanguard Intermediate-Term Corporate Bond ETF covering yield, cost, risk, and income potential.

Data updated July 4, 2026

iShares

ETFs481

Total AUM$4451B

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 and LQD.

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Vanguard

ETFs115

Total AUM$4484B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on BND and VCIT.

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Side-by-side snapshot

	AGG	BND	LQD	VCIT
Full name	iShares Core U.S. Aggregate Bond ETF	Vanguard Total Bond Market ETF	iShares iBoxx $ Investment Grade Corporate Bond ETF	Vanguard Intermediate-Term Corporate Bond ETF
Issuer	iShares	Vanguard	iShares	Vanguard
Last Close	$98.61 as of July 4, 2026	$73.11 as of July 4, 2026	$108.64 as of July 4, 2026	$82.34 as of July 4, 2026
Distribution yield	4.02%	4.01%	4.21%	4.84%
Distribution Safety Score	96	100	96	97
Expense ratio	0.03%	0.03%	0.14%	0.04%
AUM	$136B	$158B	$29.2B	$66.2B
Distribution frequency	Monthly	Monthly	Monthly	Monthly
Underlying index	Bloomberg U.S. Aggregate Bond Index	Bloomberg U.S. Aggregate Float Adjusted Index	Markit iBoxx USD Liquid Investment Grade Index	USD investment-grade intermediate-term corporate bonds
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.	Provide exposure to the fund's underlying index or strategy per issuer materials.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Fixed Income	Fixed Income	Fixed Income	Fixed Income
Inception date	09/22/2003	04/03/2007	07/22/2002	11/19/2009
Beta	0.99	0.98	1.33	1.07
Last dividend	$0.3307	$0.2445	$0.3815	$0.3320
Ex-dividend date	08/03/2026	07/01/2026	08/03/2026	07/01/2026

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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

VCIT tops the group on trailing twelve-month total return at 4.13%, with AGG at 3.50%, BND at 3.34% and LQD at 3.17%. Across the 10-year window, VCIT has the strongest compounding at 2.76% a year. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Nov 2009	Volatility	Sharpe	Sortino	Max drawdown
AGG	0.40%	3.50%	4.08%	0.02%	1.44%	2.44%	5.4%	-0.09	-0.12	-6.1%
BND	0.38%	3.34%	4.07%	-0.05%	1.41%	2.45%	5.3%	-0.09	-0.13	-5.9%
LQD	0.12%	3.17%	4.66%	-0.44%	2.23%	3.89%	7.3%	0.01	0.02	-8.4%
VCIT	0.29%	4.13%	6.09%	1.09%	2.76%	4.28%	5.6%	0.26	0.36	-6.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Nov 2009” measures every fund from November 23, 2009 — 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.

Quick verdict

AGG (iShares Core U.S. Aggregate Bond ETF), BND (Vanguard Total Bond Market ETF), LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF), VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are dividend ETFs that take different approaches.

VCIT offers the highest reported yield at 4.84%, followed by LQD at 4.21%, AGG at 4.02%, BND at 4.01%.

AGG and BND tie for the lowest expense ratio at 0.03%, compared to 0.04% for VCIT and 0.14% for LQD.

BND is the largest fund by assets ($158B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment: AGG generates ~$33.50/month, BND generates ~$33.42/month, LQD generates ~$35.08/month, VCIT generates ~$40.33/month at current distribution rates.

AGG yield4.02%

BND yield4.01%

LQD yield4.21%

VCIT yield4.84%

Cost & efficiency

Over 10 years on $10,000: AGG costs ~$30, BND costs ~$30, LQD costs ~$140, VCIT costs ~$40 in fees (simplified, not compounded).

AGG ER0.03%

BND ER0.03%

LQD ER0.14%

VCIT ER0.04%

Strategy & risk

AGG tracks Bloomberg U.S. Aggregate Bond Index with a bonds approach; BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach; LQD tracks Markit iBoxx USD Liquid Investment Grade Index with a bonds approach; VCIT tracks USD investment-grade intermediate-term corporate bonds with a bonds approach.

AGG beta0.99

BND beta0.98

LQD beta1.33

VCIT beta1.07

Fund details

AGG is managed by iShares (launched 09/22/2003) with $136B in assets. BND is managed by Vanguard (launched 04/03/2007) with $158B in assets. LQD is managed by iShares (launched 07/22/2002) with $29.2B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $66.2B in assets.

AGG AUM$136B

BND AUM$158B

LQD AUM$29.2B

VCIT AUM$66.2B

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Frequently asked questions

Which of AGG, BND, LQD, and VCIT is best for dividend income?

It depends on your goals. VCIT currently offers the highest reported distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility, and funds without an established distribution history have no comparable yield to evaluate. Consider your time horizon and risk tolerance.

What is the difference between AGG, BND, LQD, and VCIT?

AGG (iShares Core U.S. Aggregate Bond ETF) tracks Bloomberg U.S. Aggregate Bond Index with a bonds approach, issued by iShares. BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, issued by Vanguard. LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) tracks Markit iBoxx USD Liquid Investment Grade Index with a bonds approach, issued by iShares. VCIT (Vanguard Intermediate-Term Corporate Bond ETF) tracks USD investment-grade intermediate-term corporate bonds with a bonds approach, issued by Vanguard.

Can I hold AGG, BND, LQD, and VCIT together?

Yes. Many income investors hold multiple dividend ETFs to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has the lowest fees among AGG, BND, LQD, and VCIT?

AGG has an expense ratio of 0.03%, BND has an expense ratio of 0.03%, LQD has an expense ratio of 0.14%, VCIT has an expense ratio of 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 generate in each?

$10,000 in AGG yields ~$33.50/month ($402.00/year). $10,000 in BND yields ~$33.42/month ($401.00/year). $10,000 in LQD yields ~$35.08/month ($421.00/year). $10,000 in VCIT yields ~$40.33/month ($484.00/year).

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AGG vs BND vs LQD vs VCIT — at a glance

Generated June 2026 from current fund data.

Overview

These four are all fixed-income ETFs tracking investment-grade bond indexes, but they slice the market differently. AGG and BND are broad-market plays—they own Treasuries, corporates, and mortgage-backed securities across the entire yield curve. LQD focuses on investment-grade corporate bonds with liquid secondary markets. VCIT narrows further to intermediate-term corporates only. The key distinction: AGG and BND are generalists; LQD and VCIT are corporate specialists, with VCIT taking the shortest maturity band.

How they differ

AGG and BND are functionally identical—both track the Bloomberg aggregate (with BND using a float-adjusted variant), both charge 0.03%, and both carry yields near 4.00%. The real divergence sits between these broad funds and the corporate-focused pair. LQD and VCIT concentrate on investment-grade corporate debt, which yields higher (4.53% and 4.94% respectively) but carries interest-rate and credit spread risk that the aggregate doesn't. Within corporates, VCIT's intermediate-term mandate produces the highest yield at 4.94% and a beta of 1.07, versus LQD's broader maturity spectrum and higher beta of 1.33. VCIT's $66.2B in AUM dwarfs LQD's $29.2B, while AGG leads all four at $136B.

Who each is best for

AGG: Investors wanting maximum simplicity and the broadest possible bond exposure in a single holding, with minimal fee drag.

BND: Investors seeking the same broad bond-market tracking as AGG but preferring Vanguard's platform or already consolidated there.

LQD: Investors who believe investment-grade corporate credit offers better relative value than government bonds, and who tolerate higher duration sensitivity (beta 1.33) for the yield pickup.

VCIT: Investors targeting intermediate corporate bonds specifically, seeking the highest yield among the four while staying within investment-grade credit quality.

Key risks to know

Credit spread risk: LQD and VCIT depend on the spread between corporate and Treasury yields staying stable or tightening. A widening of spreads during recession would pressure both, with LQD's longer duration likely amplifying losses.

Interest-rate sensitivity: LQD's beta of 1.33 signals meaningfully higher duration risk than the aggregates (beta ~0.99). Rising rates hurt all four, but LQD's extended maturity mix compounds the sensitivity.

Maturity concentration in VCIT: VCIT's intermediate-only mandate leaves it exposed to point-on-the-yield-curve risk. Intermediate rates could underperform if the curve flattens or if longer corporates rally faster.

Spread compression in a low-rate environment: All four benefit from tight spreads and low Treasury yields. A structural shift to higher rates and widening credit spreads would erode the yield advantage of LQD and VCIT over the aggregates.

Bottom line

AGG and BND are interchangeable core holdings for broad bond exposure at rock-bottom cost. If you want to tilt toward corporate credit and can tolerate higher duration risk, LQD offers liquidity and diversified maturity; if you prefer to own only intermediate corporates and don't mind a tighter focus, VCIT delivers the highest yield of the group. The tradeoff is straightforward: broader diversification and lower interest-rate risk (aggregates) versus higher yields and credit concentration (corporates), with VCIT offering the most aggressive positioning among the four.

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