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 April 5, 2026
Side-by-side snapshot
| AGG | VCIT | |
|---|---|---|
| Full name | iShares Core U.S. Aggregate Bond ETF | Vanguard Intermediate-Term Corporate Bond ETF |
| Issuer | BlackRock | Vanguard |
| Price | $99.00 | $82.52 |
| Distribution yield | 3.83% | 4.59% |
| Expense ratio | 0.03% | 0.03% |
| AUM | $141.2B | $68.5B |
| 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 | 1.06 |
| Last dividend | $0.34 | $0.34 |
| Ex-dividend date | 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) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both popular monthly-pay provide exposure to the fund's underlying index or strategy per issuer materials. ETFs, but they take different approaches.
VCIT offers the higher yield at 4.59% vs 3.83% 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 VCIT tracks USD investment-grade intermediate-term corporate bonds, which means their performance drivers differ.
AGG is the larger fund by assets ($141.2B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, AGG would generate roughly $31.92/month while VCIT would produce $38.25/month at current distribution rates. Both pay monthly distributions.
Cost & efficiency
Over 10 years on $10,000, AGG would cost approximately $30 in fees vs $30 for VCIT (simplified, not compounded). Both charge the same expense ratio.
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, while VCIT tracks USD investment-grade intermediate-term corporate bonds using a provide exposure to the fund's underlying index or strategy per issuer materials. strategy. Beta is 0.99 for AGG and 1.06 for VCIT, indicating AGG is less volatile relative to the market.
Fund details
AGG is managed by BlackRock (launched 09/22/2003) with $141.2B 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
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 provide exposure to the fund's underlying index or strategy per issuer materials. strategy, while 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. approach. They are issued by BlackRock 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 0.03%. 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 yields, $10,000 in AGG would generate roughly $31.92 per month ($383.00 annually). The same in VCIT would produce about $38.25 per month ($459.00 annually).
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