DV
Dividend Vision

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.

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.
  • VCITInvestors who want higher current income (5.23% vs 4.25% for AGG).

Jump to the side-by-side numbers

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 outpaced VCIT over the trailing twelve months, posting a -2.07% total return against -2.65%. The picture flips over 10 years, though — VCIT has compounded at 2.31% a year, ahead of AGG at 1.12%. 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 Nov 2009Volatility Sharpe Sortino Max drawdown
AGG-2.71%-2.07%4.33%-0.67%1.12%2.21%5.2%-0.05-0.07-4.8%
VCIT-3.41%-2.65%6.00%0.26%2.31%3.98%5.4%0.250.36-4.9%

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 Nov 2009” measures every fund from November 23, 2009 — 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.
MetricAGGVCIT
Full nameiShares Core U.S. Aggregate Bond ETFVanguard Intermediate-Term Corporate Bond ETF
IssueriSharesVanguard
Underlying indexBloomberg U.S. Aggregate Bond IndexUSD investment-grade intermediate-term corporate bonds
Last Close$94.25 as of October 2, 2026$77.98 as of October 2, 2026
Distribution rate4.25%5.23%
Trailing 12-month yield4.21%5.12%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 4.25%5.23%
Expense ratio0.03%0.03%
AUM$137B$67.3B
Distribution frequencyMonthlyMonthly
ObjectiveProvide 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 classFixed IncomeFixed Income
Inception date09/22/200311/19/2009
Beta0.991.07
Last dividend$0.33414 declared, pays 10/06/2026$0.34 declared, pays 10/05/2026
Ex-dividend date10/01/202610/01/2026

Bottom lineChoose AGG if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose VCIT if you want higher current income (5.23% vs 4.25% for AGG).

Model this comparison:
Compare in my portfolio Forecast income Save to watchlist

Income calculator

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 VCIT.

See all Vanguard ETFs

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.

Compare in my portfolio Forecast income Save to watchlist

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 5.23% 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 VCIT is linked to USD investment-grade intermediate-term corporate bonds, which means their performance drivers differ.

AGG is the larger fund by assets ($137B), 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 VCIT would produce $43.58 cash per distribution, at current distribution rates. Both pay monthly distributions.

AGG yield4.25%
VCIT yield5.23%
Cash diff on $10K$8.17

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.

AGG ER0.03%
VCIT ER0.03%

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, making AGG the less volatile of the two by this measure.

AGG beta0.99
VCIT beta1.07

Fund details

AGG is managed by iShares (launched 09/22/2003) with $137B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $67.3B in assets.

AGG AUM$137B
VCIT AUM$67.3B
Ready to act?
Open in Comparator Model in portfolio See pricing

Enjoyed this page?

Do us a favor — if you found this comparison useful, please share it with a friend researching dividend ETFs.

Frequently asked questions

What is the current distribution rate for AGG and VCIT?

AGG currently distributes 4.25% and VCIT 5.23%, 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 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 — 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 VCIT 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, VCIT 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 VCIT?

AGG and VCIT 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 VCIT generate?

At current rates, $10,000 in AGG would generate roughly $35.42 cash per distribution ($425.00 annually). The same in VCIT would produce about $43.58 cash per distribution ($523.00 annually).

Which has performed better historically, AGG or VCIT?

AGG has outpaced VCIT over the trailing twelve months, posting a -2.07% total return against -2.65%. The picture flips over 10 years, though — VCIT has compounded at 2.31% a year, ahead of AGG at 1.12%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

AGG vs VCIT — at a glance

Generated October 3, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

AGG and VCIT are both bond ETFs with monthly distributions and identical 0.03% expense ratios, but they track fundamentally different parts of the fixed-income market. AGG holds the full Bloomberg Aggregate—roughly 40% Treasury/government, 20% corporate, and 40% mortgage-backed and asset-backed securities. VCIT isolates intermediate-term investment-grade corporate bonds only, offering a narrower, higher-yielding slice of the credit market.

How they differ

The biggest difference is scope: AGG is a broad bond-market fund, while VCIT is a single-sector corporate play. That explains the yield gap—5.23% for VCIT versus 4.25% for AGG—since corporates typically offer more income than Treasuries and agency MBS. AGG's $137B asset base is roughly double VCIT's $67.3B, reflecting its role as a core holding. Duration and credit exposure differ too: AGG mixes interest-rate risk across government and mortgage sectors, while VCIT carries concentrated credit risk in the intermediate corporate space. Both have identical 0.03% fees, so cost is not a differentiator.

Who each is best for

  • AGG: Fits investors building a broad, government-plus-corporate fixed-income foundation with minimal basis risk—useful as a core holding when broad-market bond exposure aligns with portfolio goals.
  • VCIT: Designed for portfolios already anchored elsewhere in Treasuries or mortgages, where adding targeted corporate-bond income addresses a specific sleeve without duplicating government or securitized exposure.

Key risks to know

  • Credit spread widening: VCIT's concentration in investment-grade corporates means its NAV is sensitive to corporate bond spreads tightening or widening. A recession or credit shock can push spreads wider quickly, hurting both price and income durability.
  • Interest-rate duration risk: AGG has a longer effective duration (23 years) due to its mortgage holdings, making it more sensitive to Treasury yield moves than VCIT's intermediate corporate duration.
  • Mortgage prepayment and extension risk: AGG's 69222934194 larger mortgage allocation exposes it to prepayment risk in falling-rate environments and extension risk when rates rise—risks absent from VCIT's pure corporate profile.
  • Credit concentration within corporates: VCIT's narrower universe means holdings overlap more densely in intermediate-term corporate issuers; sector or industry downturns affect a larger share of the fund.

Bottom line

If you need broad fixed-income ballast covering government, corporate, and mortgages with minimal complexity, AGG's size and diversification stand out. If your portfolio already has Treasury or mortgage exposure elsewhere and you want to layer in additional corporate income, VCIT's 5.23% yield and corporate-only focus offer a more surgical fit. Past performance of either fund does not predict future results; credit and duration risk apply to both, though in different proportions.

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

Still deciding? Compare them against your own portfolio

See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.

Start Free Open in Comparator Browse Screener

These comparisons follow the Dividend Vision methodology.