AGG vs BND: Which ETF Is Better in 2026?
A metric-by-metric comparison of iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Total Bond Market Index Fund (BND) — both US Bonds - Broad funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 5, 2026. ~5 minute read.
The Verdict
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — AGG scores higher: 57.2 (Grade C) versus 56.7 for BND. That doesn't make BND a bad fund; it means AGG currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| AGG | BND | |
|---|---|---|
| Category | US Bonds - Broad | US Bonds - Broad |
| Expense ratio | 0.03% | 0.03% |
| Fund size (AUM) | $136.5B | $394.4B |
| Dividend yield | 2.52% | 3.94% |
| 1-year return | +3.50% | +3.34% |
| 3-year return | +13.65% | +13.55% |
| Volatility | 3.82% | 3.75% |
| Max drawdown | -6.11% | -5.91% |
| Sharpe ratio | -0.39 | -0.44 |
| ETFValuer score | 57.2 | 56.7 |
| Grade | C | C |
| Rank (of ~150) | #82 | #87 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
On cost, the two are essentially tied — AGG charges 0.03% a year versus BND's 0.03%. A difference this small (about $0.00 a year on a $10,000 position) isn't a reason to choose one fund over the other.
Performance & Risk
Over the trailing 3 years, AGG returned +13.65% versus +13.55% for BND — a gap of about 0.1 percentage points. On risk, BND has held up better historically, with a shallower max drawdown (-5.91% vs. -6.11%). AGG currently has the better risk-adjusted return (Sharpe ratio of -0.39 vs. -0.44), meaning it delivered more return per unit of volatility taken on.
Frequently Asked Questions
Is AGG or BND better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — AGG scores higher: 57.2 (Grade C) versus 56.7 for BND. That doesn't make BND a bad fund; it means AGG currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, AGG or BND?
BND currently has the lower expense ratio (0.03% vs. 0.03%).
Can I hold both AGG and BND?
Since AGG and BND are both US Bonds - Broad funds, they likely hold significant overlapping positions — owning both usually adds cost and complexity without meaningfully improving diversification. Pick one rather than holding both at full weight.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.