iShares Core U.S. Aggregate Bond ETF (AGG): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • U.S. Intermediate-Term Bond
Expense Ratio
0.03%
AUM
$118.0B
Dividend Yield
4.20%
Inception
2003
Beginner Score
10/10
What is iShares Core U.S. Aggregate Bond ETF?
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.
AGG is managed by BlackRock and has been available since 2003. With $118.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
AGG at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 12,095 |
| P/E Ratio | N/A |
| Beta | 0.03 |
| Dividend Yield | 4.20% |
| AUM | $118.0B |
| Inception Year | 2003 |
| Issuer | BlackRock |
Top 10 Holdings in AGG
AGG holds 12,095 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury Bonds (Various) | UST | 44.30% |
| 2 | Government Mortgage-Backed Securities | MBS | 27.20% |
| 3 | Corporate Bonds (Investment Grade) | CORP | 19.20% |
| 4 | Foreign Government Bonds (USD) | FGOV | 4.20% |
| 5 | Asset-Backed Securities | ABS | 1.60% |
| 6 | Commercial Mortgage-Backed | CMBS | 1.30% |
| 7 | Supranational Bonds | SUPRA | 0.80% |
| 8 | Municipal Bonds | MUNI | 0.70% |
| 9 | Taxable Municipal Bonds | TMUNI | 0.40% |
| 10 | Other Government Related | OGOV | 0.30% |
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AGG Performance History
Here's how AGG has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
0.50%
1 Year
3.10%
3 Year
-1.90%
5 Year
-0.60%
10 Year
1.30%
Beginner Suitability Score: 10/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
AGG scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 12,095 holdings, and has been available since 2003, giving it a proven track record.
How to Buy AGG — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "AGG" — Use the search bar in your brokerage platform to find iShares Core U.S. Aggregate Bond ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into AGG
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With AGG's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of AGG
Pros
- ✓Longer track record than BND, having launched in 2003 with over 20 years of performance history
- ✓Massive AUM provides excellent liquidity and tight trading spreads
- ✓Tracks the widely recognized Bloomberg U.S. Aggregate Bond Index
- ✓Available in many 401(k) and employer-sponsored retirement plans
Cons
- ✗Like all bond funds, suffered significant losses during the 2022-2023 interest rate hiking cycle
- ✗Nearly identical to BND, so there is little reason to hold both in a portfolio
- ✗Returns have lagged inflation over recent years, reducing real purchasing power
AGG vs Similar ETFs
See how AGG stacks up against similar funds:
Frequently Asked Questions
Is AGG a good ETF for beginners?▾
AGG has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of AGG?▾
AGG has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in AGG?▾
You can invest in AGG with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does AGG pay dividends?▾
Yes, AGG pays dividends with a current yield of approximately 4.20%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in AGG?▾
The top holdings in AGG include U.S. Treasury Bonds (Various) (44.30%), Government Mortgage-Backed Securities (27.20%), Corporate Bonds (Investment Grade) (19.20%), and more. The fund holds 12,095 total positions, providing broad diversification across many companies.