# How iShares Core U.S. Aggregate Bond ETF (AGG) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/agg
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on AGG alone. It places AGG (iShares Core U.S. Aggregate Bond ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where AGG stands in the market, and of the alternatives worth a closer look.

Period covered: AGG's full trading record, from September 2003 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 6 months, AGG fell 2.6% while the S&P 500 rose 9.1%. That said, both AGG and the S&P 500 are within a few percent of a record high.
- **Fund or market?:** AGG fell 1.7% over the past 3 months even as the S&P 500 rose 3.9%.
- **Long term:** AGG turned $10,000 into $11,300 over the past decade, against $42,100 in the S&P 500. AGG's 10-year return of 13.3% puts it behind 93% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** AGG has tended to fall less than the S&P 500 in crashes, about 23% of the index's decline. The 2022 bear market took 14.5% off AGG, against 24.5% for the S&P 500. That was more than BSV (Vanguard Short-Term Bond ETF, 6.9%) but less than LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF, 21.2%).
- **Diversification:** Against the S&P 500, AGG has a correlation of 0.62 over 5 years, less closely than 73% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. AGG cushions stocks less than it used to: its correlation with the S&P 500 rose to 0.62 over the past 5 years, from 0.02 in the 5 years before.
- **Better options**
  - **Nearby categories and themes:** VTIP (Vanguard Short-Term Inflation-Protected Securities ETF, treasury bonds) and SCHO (Schwab Short-Term U.S. Treasury ETF, treasury bonds) earned more than AGG with less volatility over the past 5 years. VTIP returned 2.7% a year at 2.9% volatility, against a loss of 0.3% a year at 6.1%.
  - **Whole market:** 99 of the 3,633 stocks and funds worth at least $500 million earned more than AGG with less volatility over the past 5 years, among them SGOV (iShares 0-3 Month Treasury Bond ETF), VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and BSV (Vanguard Short-Term Bond ETF).

## How much would $10,000 in AGG have grown?

This chart tracks a hypothetical $10,000 investment in AGG over the past 19 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of AGG over the same span and AGG's popular alternatives, among those that traded for the entire period.

- $10,000 invested in AGG at the end of September 2007 would have grown to $16,715 by September 2026, less than the $70,725 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of AGG, and HYG finished highest, at $24,288.

## AGG at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- AGG's deepest decline since it began trading in 2003 was 18.4%, from August 2020 to October 2022. It has not yet climbed back to that peak.
- Over 22 full calendar years, AGG's best was 2019, when it returned 8.5%, and its worst was 2022, when it lost 13.0%. It lost money in three of those years.
- AGG is 4.0% below its all-time high.

- Type: ETF, Bonds (Asset Management)
- Trading since: September 29, 2003
- Assets: $139B
- Expense ratio: 0.03%
- Volatility (5 years): 6.1%; Sharpe ratio: -0.02
- Worst decline ever: −18.4%, from August 4, 2020 to October 20, 2022; not yet back at its high

| Period | AGG total return |
| --- | --- |
| 1 month | −0.6% |
| 3 months | −1.7% |
| 6 months | −2.6% |
| year to date | −1.7% |
| 1 year | −1.9% |
| 3 years | +16.2% |
| 5 years | −1.5% |
| 10 years | +13.3% |

## AGG against the whole market

Where AGG ranks among every stock and fund, and what across the market has done better.

### How does AGG rank among all ETFs?

This section ranks AGG on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- AGG's worst decline of the past 10 years ranks in the top 9% of the 951 ETFs with at least $100 million in assets, where the top fell the least.
- AGG's 10-year return ranks in the bottom 7% of the 958 ETFs with at least $100 million in assets with 10 years of history.

| Measure | AGG | Rank |
| --- | --- | --- |
| 1-year return | −1.9% | 2,168 of 2,485 (top 88%) |
| 3-year return | +16.2% | 1,715 of 1,949 (top 88%) |
| 5-year return | −1.5% | 1,410 of 1,560 (top 91%) |
| 10-year return | +13.3% | 893 of 958 (top 94%) |
| Volatility, 5 years | 6.1% | 193 of 1,560 (top 13%) |
| Sharpe ratio, 5 years | -0.02 | 1,451 of 1,560 (top 94%) |
| Worst decline, past 10 years | −18.4% | 87 of 951 (top 10%) |

### What has beaten AGG on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 99 ETFs worth at least $500 million sit in the green region: each earned more than AGG over the past 5 years with smaller price swings. That is 3% of the 3,633 screened.
- Among those with at least half AGG's swings, BALT has the best return for its risk: 6.3% a year at 3.3% volatility, 46% less than AGG's 6.1%, and a Sharpe ratio (return above cash per unit of volatility) of 1.85 against -0.02 for AGG.
- Among AGG's popular alternatives, SGOV, IGSB and BSV are in the region. SGOV earned 3.8% a year against a loss of 0.3% a year for AGG, at 0.3% volatility, 95% less than AGG's 6.1%.

### Is there a better investment than AGG?

The table below lists investments that beat AGG over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among AGG's popular alternatives, BSV, IGSB and SGOV earned more than AGG with less volatility over the past 5 years. BSV returned 1.7% a year at 2.8% volatility, against a loss of 0.3% a year at 6.1%.
- Looking beyond its popular alternatives, VTIP (treasury bonds) and SCHO (treasury bonds) earned more than AGG with less volatility over the past 5 years. VTIP returned 2.7% a year at 2.9% volatility, against a loss of 0.3% a year at 6.1%.
- Across the whole market, 99 of the 3,633 stocks and funds worth at least $500 million earned more than AGG with less volatility over the past 5 years, among them SGOV, VTIP and BSV.

The 15 strongest of 99 investments that beat AGG over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with AGG | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| AGG: iShares Core U.S. Aggregate Bond ETF (this page) |  | −0.3% | 6.1% | -0.02 | −18.4% | +13.3% |  |  |
| [BIL](https://easycompare.io/research/bil): State Street SPDR Bloomberg 1-3 Month T-Bill ETF | Treasury Bonds | +3.7% | 0.3% | 14.05 | −0.2% | +25.8% | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.26 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VRIG: Invesco Variable Rate Investment Grade ETF | Bonds | +4.7% | 1.3% | 3.51 | −13.1% | +40.5% | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VNLA: Janus Henderson Short Duration Income ETF | Bonds | +4.0% | 1.1% | 3.77 | −4.5% | — | 0.67 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NEAR: iShares Short Duration Bond Active ETF | Short-Term Bonds | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.71 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SUB: iShares Short-Term National Muni Bond ETF | Municipal Bonds | +1.4% | 1.7% | 0.85 | −9.4% | +15.6% | 0.83 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| TBUX: T. Rowe Price Ultra Short-Term Bond ETF | Bonds | +4.1% | 1.1% | 3.85 | −1.8% | — | 0.66 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USTB: VictoryShares Short-Term Bond ETF | Bonds | +3.6% | 2.0% | 1.73 | −5.3% | — | 0.88 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LMBS: First Trust Low Duration Opportunities ETF | Mortgage-Backed Securities | +3.0% | 2.6% | 1.14 | −6.5% | +25.6% | 0.90 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RAVI: Northern Trust Ultra-Short Fixed Income ETF | Bonds | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.53 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | Treasury Bonds | +2.7% | 2.9% | 0.94 | −6.3% | +32.7% | 0.71 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| MEAR: iShares Short Maturity Municipal Bond Active ETF | Bonds | +2.4% | 1.0% | 2.37 | −2.7% | +19.3% | 0.74 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SPSB: State Street SPDR Portfolio Short Term Corporate Bond ETF | Investment Grade Bonds | +2.8% | 2.0% | 1.38 | −11.8% | +29.2% | 0.91 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SHY: iShares 1-3 Year Treasury Bond ETF | Treasury Bonds | +1.8% | 2.0% | 0.89 | −5.7% | +17.7% | 0.86 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## AGG against its popular alternatives

The investments people most often weigh against AGG, compared period by period and year by year.

### How do AGG's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Ten of the 24 popular alternatives, led by SGOV, IGSB and BSV, were both more rewarding and calmer than AGG over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, AGG returned -0.3% a year, less than the S&P 500's 12.7%, with lower volatility (6.1% against 17.1%).

### Has AGG consistently beaten its popular alternatives?

This section compares AGG with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Four of the 28 popular alternatives, led by IGSB, HYG and BSV, outperformed AGG in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- IGSB outperformed AGG in every long-term period and in all but one short-term period, the most consistent record in the group.
- SGOV, IGSB and BSV earned more for the risk they took than AGG (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of AGG | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| AGG: iShares Core U.S. Aggregate Bond ETF (this page) | −1.9% | +16.2% | −1.5% | +13.3% |  |  | -0.02 |
| IGSB: iShares 1-5 Year Investment Grade Corporate Bond ETF | +0.7% | +17.3% | +12.4% | +29.4% | 5/5 short-term, 3/3 long-term | all-weather | 0.80 |
| HYG: iShares iBoxx $ High Yield Corporate Bond ETF | +0.7% | +27.5% | +16.8% | +49.5% | 3/5 short-term, 3/3 long-term | consistent | 0.45 |
| [BSV](https://easycompare.io/research/bsv): Vanguard Short-Term Bond ETF | +0.7% | +14.1% | +8.8% | +20.5% | 5/5 short-term, 2/3 long-term | consistent | 0.63 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | −1.4% | +13.4% | +0.8% | +15.0% | 5/5 short-term, 2/3 long-term | consistent | 0.06 |
| IGIB: iShares 5-10 Year Investment Grade Corporate Bond ETF | −2.7% | +21.9% | +3.9% | +28.8% | 0/5 short-term, 3/3 long-term |  | 0.15 |
| SPBO: State Street SPDR Portfolio Corporate Bond ETF | −2.2% | +20.5% | +0.4% | +25.1% | 0/5 short-term, 3/3 long-term |  | 0.05 |
| USIG: iShares Broad USD Investment Grade Corporate Bond ETF | −2.5% | +19.7% | +0.3% | +23.5% | 0/5 short-term, 3/3 long-term |  | 0.04 |
| FBND: Fidelity Total Bond ETF | −1.9% | +17.8% | +1.5% | +21.9% | 0/5 short-term, 3/3 long-term |  | 0.08 |
| BOND: PIMCO Active Bond Exchange-Traded Fund | −1.9% | +19.5% | −0.3% | +19.3% | 0/5 short-term, 3/3 long-term |  | 0.02 |
| [IUSB](https://easycompare.io/research/iusb): iShares Core Universal USD Bond ETF | −1.6% | +17.5% | +0.2% | +16.9% | 0/5 short-term, 3/3 long-term |  | 0.04 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | −2.7% | +16.8% | −0.7% | +15.7% | 0/5 short-term, 3/3 long-term |  | 0.01 |
| TIP: iShares TIPS Bond ETF | −1.5% | +13.3% | −0.3% | +23.5% | 2/5 short-term, 2/3 long-term |  | 0.02 |
| JCPB: JPMorgan Core Plus Bond ETF | −1.3% | +19.8% | +3.0% | — | 1/5 short-term, 2/3 long-term |  | 0.14 |
| GTO: Invesco Total Return Bond ETF | −1.7% | +18.3% | −2.1% | +25.8% | 0/5 short-term, 2/3 long-term |  | -0.05 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | −3.9% | +19.7% | −4.3% | +20.5% | 0/5 short-term, 2/3 long-term |  | -0.06 |
| [MUB](https://easycompare.io/research/mub): iShares National Muni Bond ETF | −1.7% | +10.8% | +1.5% | +17.8% | 0/5 short-term, 2/3 long-term |  | 0.09 |
| TOTL: State Street DoubleLine Total Return Tactical ETF | −2.6% | +17.4% | +0.7% | +12.7% | 0/5 short-term, 2/3 long-term |  | 0.05 |
| VMBS: Vanguard Mortgage-Backed Securities ETF | −1.5% | +19.2% | +0.3% | +10.6% | 0/5 short-term, 2/3 long-term |  | 0.04 |
| MBB: iShares MBS ETF | −1.9% | +18.5% | −0.8% | +9.5% | 0/5 short-term, 2/3 long-term |  | 0.01 |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | +3.4% | +13.8% | +20.3% | — | 5/5 short-term, 1/3 long-term |  | 13.25 |
| SCHZ: Schwab U.S. Aggregate Bond ETF | −1.9% | +16.2% | −1.6% | +15.0% | 0/5 short-term, 1/3 long-term |  | -0.02 |
| BLV: Vanguard Long-Term Bond ETF | −6.8% | +16.7% | −21.1% | +1.8% | 0/5 short-term, 1/3 long-term |  | -0.30 |
| CGCP: Capital Group Core Plus Income ETF | −2.0% | +18.5% | — | — | 0/5 short-term, 1/3 long-term |  | — |
| DFCF: Dimensional - Core Fixed Income ETF | −2.1% | +17.2% | — | — | 0/5 short-term, 1/3 long-term |  | — |
| [BND](https://easycompare.io/research/bnd): Vanguard Total Bond Market ETF | −2.1% | +15.7% | −1.8% | +13.2% | 0/5 short-term, 0/3 long-term |  | -0.03 |
| SPAB: State Street SPDR Portfolio Aggregate Bond ETF | −1.9% | +16.1% | −1.6% | +13.1% | 0/5 short-term, 0/3 long-term |  | -0.02 |
| [GOVT](https://easycompare.io/research/govt): iShares U.S. Treasury Bond ETF | −1.8% | +12.7% | −3.5% | +7.1% | 0/5 short-term, 0/3 long-term |  | -0.09 |
| BKAG: BNY Mellon Core Bond ETF | −1.9% | +16.1% | −1.8% | — | 0/5 short-term, 0/3 long-term |  | -0.03 |

### How did AGG do year by year?

This table shows each investment's total return in every full calendar year since 2004, along with where AGG ranked among its popular alternatives each year.

- AGG finished ahead of the S&P 500 in five of its 22 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, JCPB came out ahead of AGG most often, in five of the six years both traded.
- Ranked against its popular alternatives each year, AGG finished in the top quarter in one of 18 years and in the bottom quarter in three. In 2025, it ranked 16 of 26.

| Year | AGG | SPY |
| --- | --- | --- |
| 2025 | +7.2% | +17.7% |
| 2024 | +1.3% | +24.9% |
| 2023 | +5.7% | +26.2% |
| 2022 | −13.0% | −18.2% |
| 2021 | −1.8% | +28.7% |
| 2020 | +7.5% | +18.3% |
| 2019 | +8.5% | +31.2% |
| 2018 | +0.1% | −4.6% |
| 2017 | +3.6% | +21.7% |
| 2016 | +2.4% | +12.0% |

## Risk and diversification

How AGG has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were AGG's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- Not every decline was the market's doing: AGG fell 18.4% from August 2020 to October 2022, while the S&P 500 rose 14.4%.
- In two of AGG's four worst declines, it fell less than the S&P 500 did over the same dates.
- None of these declines kept AGG below its old high for long; the longest climb back took eight months.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −18.4% | August 4, 2020 | October 20, 2022 | not yet | +14.4% | 2022 bear market |
| −12.8% | September 9, 2008 | October 10, 2008 | December 15, 2008 | −27.8% | 2008 financial crisis |
| −9.6% | March 6, 2020 | March 18, 2020 | May 21, 2020 | −19.3% | Covid crash |
| −5.1% | May 2, 2013 | September 5, 2013 | May 14, 2014 | +4.4% |  |

### How did AGG do in stock market crashes?

This section measures how far AGG, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- AGG fell less than the S&P 500 in all nine crashes it has traded through. The clearest case was the 2008 financial crisis, when AGG fell 12.8% and the S&P 500 fell 55.2%.
- Among its popular alternatives, BSV held up best, falling less than AGG in six of the nine crashes they both traded through.

| Crash | Dates | AGG fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −12.8% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −0.4% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −1.3% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −1.5% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −0.8% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −1.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −9.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −14.5% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | 0.0% | −3.4% |

### How closely does AGG move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, AGG captured 12% of the S&P 500's gains in rising months and 17% of its losses in falling months, with a beta of 0.14. Its share of the market's losses was slightly larger than its share of the gains.
- 13 of the 22 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than AGG's 0.71, led by BSV, IGSB and TIP.
- IGSB took just 8% of the S&P 500's losses, against 17% for AGG, while still keeping 13% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| AGG: iShares Core U.S. Aggregate Bond ETF (this page) | 12.0% | 17.0% | 0.14 |
| IGSB: iShares 1-5 Year Investment Grade Corporate Bond ETF | 13.0% | 8.0% | 0.11 |
| HYG: iShares iBoxx $ High Yield Corporate Bond ETF | 34.0% | 40.0% | 0.39 |
| [BSV](https://easycompare.io/research/bsv): Vanguard Short-Term Bond ETF | 7.0% | 3.0% | 0.04 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | 11.0% | 13.0% | 0.14 |
| IGIB: iShares 5-10 Year Investment Grade Corporate Bond ETF | 22.0% | 29.0% | 0.27 |
| SPBO: State Street SPDR Portfolio Corporate Bond ETF | 22.0% | 31.0% | 0.27 |
| USIG: iShares Broad USD Investment Grade Corporate Bond ETF | 22.0% | 31.0% | 0.27 |
| FBND: Fidelity Total Bond ETF | 17.0% | 21.0% | 0.18 |
| BOND: PIMCO Active Bond Exchange-Traded Fund | 16.0% | 22.0% | 0.19 |
| [IUSB](https://easycompare.io/research/iusb): iShares Core Universal USD Bond ETF | 15.0% | 20.0% | 0.16 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | 13.0% | 18.0% | 0.15 |
| TIP: iShares TIPS Bond ETF | 15.0% | 17.0% | 0.18 |
| GTO: Invesco Total Return Bond ETF | 19.0% | 24.0% | 0.22 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | 25.0% | 39.0% | 0.33 |
| [MUB](https://easycompare.io/research/mub): iShares National Muni Bond ETF | 14.0% | 18.0% | 0.14 |
| TOTL: State Street DoubleLine Total Return Tactical ETF | 13.0% | 18.0% | 0.15 |
| VMBS: Vanguard Mortgage-Backed Securities ETF | 13.0% | 20.0% | 0.13 |
| MBB: iShares MBS ETF | 13.0% | 21.0% | 0.14 |
| SCHZ: Schwab U.S. Aggregate Bond ETF | 14.0% | 20.0% | 0.16 |
| BLV: Vanguard Long-Term Bond ETF | 21.0% | 45.0% | 0.32 |
| [BND](https://easycompare.io/research/bnd): Vanguard Total Bond Market ETF | 13.0% | 19.0% | 0.15 |
| [GOVT](https://easycompare.io/research/govt): iShares U.S. Treasury Bond ETF | 6.0% | 8.0% | 0.06 |

### What diversifies AGG?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- MPC made money in three of the three calendar years in which AGG lost money.
- Among large ETFs, DXJ, EMLP and HDV have moved largely independently of AGG over the past 5 years, with correlations of 0.49 or lower, and each still earned a positive 5-year return.
- Moving a fifth of the money in AGG into DXJ would have cut the portfolio's volatility by 3% over the past 5 years and raised its annual return (-0.6% for AGG alone, +4.5% for the mix).

| Investment | Correlation with AGG | 5Y return | Volatility | Sharpe | Rose in AGG's 3 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.23 | +225% | 19.1% | 1.34 | 3 of 3 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.48 | +101% | 14.5% | 1.04 | 3 of 3 |
| HDV: iShares Core High Dividend ETF | 0.49 | +83.3% | 13.0% | 1.00 | 3 of 3 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.41 | +126% | 18.9% | 0.96 | 0 of 3 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.41 | +136% | 20.8% | 0.93 | 1 of 3 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.09 | +177% | 25.5% | 0.93 | 3 of 3 |
| AMLP: Alerian MLP ETF | 0.20 | +111% | 18.9% | 0.89 | 3 of 3 |
| PTLC: Pacer Trendpilot US Large Cap ETF | 0.46 | +57.4% | 11.8% | 0.83 | 1 of 3 |

## Common questions

### What was AGG's worst drawdown?

AGG's deepest decline since it began trading in 2003 was 18.4%, from August 2020 to October 2022. It has not yet climbed back to that peak. Because AGG launched in September 2003, that record does not include the dot-com bust.

### What were AGG's best and worst years?

Over 22 full calendar years, AGG's best year was 2019, when it returned 8.5%. Its worst was 2022, with a return of -13.0%.

### Is there a better investment than AGG?

Among AGG's popular alternatives, BSV, IGSB and SGOV earned more than AGG with less volatility over the past 5 years. BSV returned 1.7% a year at 2.8% volatility, against a loss of 0.3% a year at 6.1%. Looking beyond its popular alternatives, VTIP (treasury bonds) and SCHO (treasury bonds) earned more than AGG with less volatility over the past 5 years. VTIP returned 2.7% a year at 2.9% volatility, against a loss of 0.3% a year at 6.1%.

### Is AGG more volatile than the S&P 500?

No. AGG's volatility over the past 5 years was 6.1%, 36% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, AGG's return lands within 6.1% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is AGG's Sharpe ratio?

AGG's Sharpe ratio over the past 5 years was -0.02, against 0.79 for the S&P 500, so AGG earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is AGG with the S&P 500?

Over the past 5 years, AGG's monthly returns had a correlation of 0.62 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against AGG instead: the lower it is, the more that option would diversify a AGG holding.

### What are the best alternatives to AGG?

Of the 28 popular alternatives we compared, four outperformed AGG in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: IGSB, HYG and BSV.

### Did AGG outperform the S&P 500?

AGG finished ahead of the S&P 500 (SPY) in five of 22 full calendar years. In 2025, it returned +7.2%, against +17.7% for the index.

### How did AGG do in stock market crashes?

AGG fell less than the S&P 500 (SPY) in nine of the nine major crashes it has traded through, and further in no. The clearest case was the 2008 financial crisis, when AGG fell 12.8% and the S&P 500 fell 55.2%.

### What diversifies AGG?

These had a low correlation with AGG over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.23), EMLP (correlation 0.48) and HDV (correlation 0.49); among large stocks, CAH (correlation 0.23), CLS (correlation 0.10) and FIX (correlation 0.19). A correlation near zero means the two have moved largely independently.

## More research

- [Vanguard Short-Term Bond ETF (BSV) Performance, Alternatives and Market Rank](https://easycompare.io/research/bsv)
- [Vanguard Total International Bond ETF (BNDX) Performance, Alternatives and Market Rank](https://easycompare.io/research/bndx)
- [iShares Core Universal USD Bond ETF (IUSB) Performance, Alternatives and Market Rank](https://easycompare.io/research/iusb)
- [Vanguard Intermediate-Term Bond ETF (BIV) Performance, Alternatives and Market Rank](https://easycompare.io/research/biv)
- [iShares National Muni Bond ETF (MUB) Performance, Alternatives and Market Rank](https://easycompare.io/research/mub)
- [iShares 0-3 Month Treasury Bond ETF (SGOV) Performance, Alternatives and Market Rank](https://easycompare.io/research/sgov)
- [Vanguard Total Bond Market ETF (BND) Performance, Alternatives and Market Rank](https://easycompare.io/research/bnd)
- [iShares U.S. Treasury Bond ETF (GOVT) Performance, Alternatives and Market Rank](https://easycompare.io/research/govt)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)
- [NVIDIA (NVDA) Performance, Alternatives and Market Rank](https://easycompare.io/research/nvda)
- [Apple (AAPL) Performance, Alternatives and Market Rank](https://easycompare.io/research/aapl)
- [Alphabet (GOOG) Performance, Alternatives and Market Rank](https://easycompare.io/research/goog)

## Explore further

- Full page with charts: https://easycompare.io/research/agg
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against AGG live: https://betterthanspy.com/?b=AGG&utm_source=easycompare&utm_medium=research