ETF Comparison

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

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

Data updated July 10, 2026

iShares

ETFs481

Total AUM$4452B

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

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 VCIT.

See all Vanguard ETFs

Side-by-side snapshot

	AGG	VCIT
Full name	iShares Core U.S. Aggregate Bond ETF	Vanguard Intermediate-Term Corporate Bond ETF
Issuer	iShares	Vanguard
Last Close	$98.18 as of July 10, 2026	$81.92 as of July 10, 2026
Distribution yield	4.04%	4.86%
Distribution Safety Score	96	97
Expense ratio	0.03%	0.04%
AUM	$136B	$66.2B
Distribution frequency	Monthly	Monthly
Underlying index	Bloomberg U.S. Aggregate Bond Index	USD investment-grade intermediate-term corporate bonds
Objective	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
Inception date	09/22/2003	11/19/2009
Beta	0.99	1.07
Last dividend	$0.3307	$0.3320
Ex-dividend date	07/01/2026	07/01/2026

Bottom lineChoose AGG if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose VCIT if you want higher current income (4.86% vs 4.04% for AGG).

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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

AGG has lagged VCIT over the trailing twelve months, posting a 3.79% total return against 4.40%. The lead holds up over 10 years too: VCIT has compounded at 2.64% a year, against 1.34% for AGG. 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	-0.04%	3.79%	4.21%	-0.23%	1.34%	2.41%	5.4%	-0.07	-0.09	-6.1%
VCIT	-0.22%	4.40%	6.23%	0.82%	2.64%	4.24%	5.6%	0.28	0.40	-6.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 9, 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) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

VCIT offers the higher yield at 4.86% vs 4.04% for AGG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

AGG is cheaper with an expense ratio of 0.03% compared to 0.04%.

They track different benchmarks: AGG is linked to Bloomberg U.S. Aggregate Bond Index while VCIT tracks USD investment-grade intermediate-term corporate bonds, which means their performance drivers differ.

AGG is the larger fund by assets ($136B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose AGG

iShares Core U.S. Aggregate Bond ETF

Want fixed-income ballast that cushions equity drawdowns.
Want to keep costs low — a 0.03% expense ratio vs 0.04% for VCIT.

Choose VCIT

Vanguard Intermediate-Term Corporate Bond ETF

Want higher current income — VCIT yields 4.86% vs 4.04% for AGG.
Want fixed-income ballast that cushions equity drawdowns.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, AGG would generate roughly $33.67/month, while VCIT would produce $40.50/month, at current distribution rates. Both pay monthly distributions.

AGG yield4.04%

VCIT yield4.86%

Monthly diff on $10K$6.83

Cost & efficiency

Over 10 years on $10,000, AGG would cost approximately $30 in fees vs $40 for VCIT (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

AGG ER0.03%

VCIT ER0.04%

Strategy & risk

AGG tracks Bloomberg U.S. Aggregate Bond Index with a bonds approach, while VCIT tracks USD investment-grade intermediate-term corporate bonds with a bonds approach. Beta is 0.99 for AGG and 1.07 for VCIT, indicating AGG is less volatile relative to the market.

AGG beta0.99

VCIT beta1.07

Fund details

AGG is managed by iShares (launched 09/22/2003) with $136B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $66.2B in assets.

AGG AUM$136B

VCIT AUM$66.2B

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Frequently asked questions

Is AGG or VCIT better for dividend income?

It depends on your goals. VCIT 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 VCIT?

AGG (iShares Core U.S. Aggregate Bond ETF) tracks Bloomberg U.S. Aggregate Bond Index with a bonds approach, while VCIT (Vanguard Intermediate-Term Corporate Bond ETF) tracks USD investment-grade intermediate-term corporate bonds with a bonds approach. They are issued by iShares and Vanguard respectively.

Can I hold both AGG and VCIT?

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

Which has lower fees, AGG or VCIT?

AGG has an expense ratio of 0.03% while VCIT charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in AGG would generate roughly $33.67 per month ($404.00 annually). The same in VCIT would produce about $40.50 per month ($486.00 annually).

Which has performed better historically, AGG or VCIT?

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AGG vs VCIT — at a glance

Generated July 2026 from current fund data.

Overview

AGG and VCIT are both investment-grade bond ETFs paying monthly distributions, but they track different universes. AGG holds the broad U.S. Aggregate Bond Index—treasuries, investment-grade corporates, mortgage-backed securities, and asset-backed securities all blended together. VCIT focuses exclusively on intermediate-term corporate bonds rated investment grade. The key trade-off is breadth versus yield: AGG is the market's de facto core bond holding, while VCIT concentrates on the corporate slice and offers a higher payout.

How they differ

AGG's underlying index spans the entire investable U.S. bond market, which means it carries significant duration risk from treasuries and MBS alongside corporate credit exposure. VCIT isolates intermediate-term corporates only, shedding treasury and structured-product duration. That structural difference drives the second key distinction: yield. VCIT distributes 4.84% versus AGG's 4.02%—a 82 basis point spread reflecting VCIT's heavier corporate and intermediate-term positioning. Third, AGG is nearly double VCIT's size at $136B in AUM versus $66.2B, making AGG the more liquid and lower-cost choice (3 basis points vs. 4 basis points). VCIT's beta of 1.07 is also slightly elevated versus AGG's 0.99, indicating marginally higher sensitivity to broader bond-market moves.

Who each is best for

AGG: Fits investors seeking a single core holding that replicates the entire taxable bond market—those who want minimal credit concentration and are comfortable with the duration profile of treasuries, agencies, and MBS alongside corporates.

VCIT: Designed for investors comfortable taking on concentrated corporate credit exposure in exchange for higher income, and who want to avoid the duration drag of long-dated treasuries and agency MBS.

Key risks to know

Credit spread risk. VCIT's concentration in investment-grade corporates means it carries direct exposure to corporate credit spread widening. AGG's diversification across asset classes provides some insulation from corporate-specific spread moves.
Duration and interest-rate risk. AGG holds substantial U.S. Treasury and agency mortgage exposure, which will extend its duration and amplify NAV declines if rates rise. VCIT's intermediate corporate focus keeps duration shorter but still material.
Refinancing risk in corporates. VCIT's corporate holdings may face issuer refinancing pressure if rates remain elevated or credit conditions tighten, affecting pricing and yield sustainability.
MBS prepayment and extension risk. AGG's mortgage-backed holdings introduce reinvestment risk if rates fall (prepayment) and extension risk if rates rise, neither of which affects VCIT directly.

Bottom line

AGG serves as the broad-market bond anchor—maximum diversification, minimal cost, and the Treasury/agency buffer that comes with market-cap weighting. VCIT trades that diversification for higher yield through concentrated corporate exposure and shorter duration. If you want a single bond core holding that moves with the overall market, AGG stands out; if you're building a bond ladder and want to tilt toward corporates for additional income, VCIT's 82 basis point yield advantage reflects that tradeoff. Past performance doesn't predict future results; rate moves and credit cycles will determine whether either fund meets its stated distribution rate.

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

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