BND vs AGG: Head-to-Head Comparison
BND vs AGG: Vanguard Total Bond Market ETF has an expense ratio of 0.03% while iShares Core U.S. Aggregate Bond ETF charges 0.03%. BND holds 11,286 securities vs AGG's 12,095. 5-year returns: -0.50% vs -0.60%.
Last updated: April 2026
Bond
Quick Verdict
Both ETFs score equally well for beginners (10/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | BND | AGG |
|---|---|---|
| Expense Ratio | 0.03% | 0.03% |
| AUM | $116.0B | $118.0B |
| Dividend Yield | 4.30% | 4.20% |
| Holdings | 11,286 | 12,095 |
| 1-Year Return | 3.20% | 3.10% |
| 5-Year Return (Ann.) | -0.50% | -0.60% |
| 10-Year Return (Ann.) | 1.40% | 1.30% |
| Beta | 0.03 | 0.03 |
| P/E Ratio | N/A | N/A |
BND 5-year annualized return is -0.50% compared to AGG's -0.60%. Over 10 years, BND returned 1.40% vs AGG's 1.30%.
View data table
| Period | BND Return | AGG Return |
|---|---|---|
| YTD | 0.50% | 0.50% |
| 1 Year | 3.20% | 3.10% |
| 3 Year | -1.80% | -1.90% |
| 5 Year | -0.50% | -0.60% |
| 10 Year | 1.40% | 1.30% |
Key Differences Between BND and AGG
BND (Vanguard Total Bond Market ETF) is a u.s. intermediate-term bond fund managed by Vanguard. BND provides exposure to the entire U.S. investment-grade bond market, including government, corporate, and mortgage-backed bonds. Bonds generally provide stability and income to a portfolio, acting as a cushion when stocks decline. Beginners often add BND to their portfolio to reduce overall volatility and provide steady income, with the typical rule of thumb being to hold your age in bonds as a percentage of your portfolio.
AGG (iShares Core U.S. Aggregate Bond ETF) is a u.s. intermediate-term bond fund managed by BlackRock. AGG is BlackRock's version of a total U.S. bond market ETF, tracking the Bloomberg U.S. Aggregate Bond Index. It covers a similar universe of bonds as Vanguard's BND, including treasuries, corporates, and mortgage-backed securities. Beginners will find that AGG and BND are nearly interchangeable, with the main differences being minor variations in expense ratio and the index methodology used.
The most notable differences are in fees (0.03% vs 0.03%), number of holdings (11,286 vs 12,095), and 5-year returns (-0.50% vs -0.60%).
BND vs AGG multi-factor comparison: BND has a 0.03% expense ratio, -0.50% 5-year return, 11,286 holdings, 0.03 beta, and 4.30% yield. AGG has 0.03% expense ratio, -0.60% 5-year return, 12,095 holdings, 0.03 beta, and 4.20% yield.
View data table
| Metric | BND | AGG |
|---|---|---|
| Expense Ratio | 0.03% | 0.03% |
| 5-Year Return | -0.50% | -0.60% |
| Holdings | 11,286 | 12,095 |
| Beta | 0.03 | 0.03 |
| Dividend Yield | 4.30% | 4.20% |
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Holdings Overlap Analysis
100%
Holdings Overlap
BND and AGG share 100% of their top holdings. This means they are very similar funds — owning both would result in significant duplication in your portfolio. For most beginners, choosing one is sufficient.
BND and AGG share 100% of their top holdings (high overlap). BND has 11,286 total holdings and AGG has 12,095. Common holdings include UST, MBS, CORP.
View data table
| Metric | BND | AGG |
|---|---|---|
| Overlap | 100% | 100% |
| Unique Holdings | 0% | 0% |
| Total Holdings | 11,286 | 12,095 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
BND
Fee cost: $258
AGG
Fee cost: $258
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, BND (0.03% fee) grows to $46,351 while AGG (0.03% fee) grows to $46,351. The fee difference costs $0.
View data table
| Year | BND Value | AGG Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,673 | $14,673 |
| 10 | $21,529 | $21,529 |
| 15 | $31,590 | $31,590 |
| 20 | $46,351 | $46,351 |
Which One Should a Beginner Choose?
Choose BND if: You want conservative investors who want portfolio stability and predictable income, investors approaching or in retirement who need to reduce portfolio volatility, anyone building a balanced stock-and-bond portfolio. It's managed by Vanguard with an expense ratio of 0.03%.
Choose AGG if: You want investors who prefer blackrock/ishares as their etf provider, 401(k) participants looking for a core bond holding, conservative investors building a balanced portfolio with stock and bond allocations. It's managed by BlackRock with an expense ratio of 0.03%.
Can You Own Both BND and AGG?
With 100% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.
Frequently Asked Questions
Should I buy BND or AGG?▾
Both ETFs score equally well for beginners (10/10). Your choice depends on your specific investment goals. However, both are solid options. BND is best for investors who want conservative investors who want portfolio stability and predictable income, while AGG is better suited for investors who prefer blackrock/ishares as their etf provider.
What is the difference between BND and AGG?▾
BND (Vanguard Total Bond Market ETF) tracks u.s. intermediate-term bond investments with 11,286 holdings and a 0.03% expense ratio. AGG (iShares Core U.S. Aggregate Bond ETF) focuses on u.s. intermediate-term bond with 12,095 holdings at 0.03%. Their top holdings overlap by 100%.
Can I own both BND and AGG?▾
Since BND and AGG have 100% holdings overlap, owning both means significant duplication. Most beginners are better off choosing one.