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 April 5, 2026
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 | BlackRock | Vanguard | BlackRock | Vanguard |
| Price | $99.00 | $73.42 | $108.66 | $82.52 |
| Distribution yield | 3.83% | 3.82% | 4.44% | 4.59% |
| Expense ratio | 0.03% | 0.03% | 0.14% | 0.03% |
| AUM | $141.2B | $395.3B | $32.0B | $68.5B |
| 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 | 1.35 | 1.06 |
| Last dividend | $0.34 | $0.25 | $0.45 | $0.34 |
| Ex-dividend date | 04/01/2026 | 04/01/2026 | 04/01/2026 | 04/01/2026 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
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 popular dividend ETFs that take different approaches.
VCIT offers the highest yield at 4.59%, followed by LQD at 4.44%, AGG at 3.83%, BND at 3.82%.
AGG is the cheapest with an expense ratio of 0.03%, compared to 0.03% for BND and 0.03% for VCIT and 0.14% for LQD.
BND is the largest fund by assets ($395.3B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment: AGG generates ~$31.92/month, BND generates ~$31.83/month, LQD generates ~$37.00/month, VCIT generates ~$38.25/month at current distribution rates.
Cost & efficiency
Over 10 years on $10,000: AGG costs ~$30, BND costs ~$30, LQD costs ~$140, VCIT costs ~$30 in fees (simplified, not compounded).
Strategy & risk
AGG tracks Bloomberg U.S. Aggregate Bond Index with a provide exposure to the fund's underlying index or strategy per issuer materials. approach; BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a track the bloomberg u.s. aggregate float adjusted index for broad u.s. bond exposure. approach; LQD tracks Markit iBoxx USD Liquid Investment Grade Index with a provide exposure to the fund's underlying index or strategy per issuer materials. approach; VCIT tracks USD investment-grade intermediate-term corporate bonds with a provide exposure to the fund's underlying index or strategy per issuer materials. approach.
Fund details
AGG is managed by BlackRock (launched 09/22/2003) with $141.2B in assets. BND is managed by Vanguard (launched 04/03/2007) with $395.3B in assets. LQD is managed by BlackRock (launched 07/22/2002) with $32.0B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $68.5B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
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 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, BND, LQD, and VCIT?
AGG (iShares Core U.S. Aggregate Bond ETF) tracks Bloomberg U.S. Aggregate Bond Index with a provide exposure to the fund's underlying index or strategy per issuer materials. strategy, issued by BlackRock. BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a track the bloomberg u.s. aggregate float adjusted index for broad u.s. bond exposure. strategy, issued by Vanguard. LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) tracks Markit iBoxx USD Liquid Investment Grade Index with a provide exposure to the fund's underlying index or strategy per issuer materials. strategy, issued by BlackRock. VCIT (Vanguard Intermediate-Term Corporate Bond ETF) tracks USD investment-grade intermediate-term corporate bonds with a provide exposure to the fund's underlying index or strategy per issuer materials. strategy, 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 0.03%. 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 ~$31.92/month ($383.00/year). $10,000 in BND yields ~$31.83/month ($382.00/year). $10,000 in LQD yields ~$37.00/month ($444.00/year). $10,000 in VCIT yields ~$38.25/month ($459.00/year).
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