AGG and BND are the two best-known ETFs that hold the entire US investment-grade bond market. They own thousands of government, corporate and mortgage-backed bonds and behave almost identically. The differences are small details.
AGG vs BND: Two Total US Bond Market ETFs
AGG and BND both hold the broad US investment-grade bond market. Compare the issuers, indexes and what to check before choosing.
At a glance
iShares Core U.S. Aggregate Bond ETF
AGG
|
Vanguard Total Bond Market ETF
BND
|
|
|---|---|---|
| Exchange | NYSE Arca | NYSE Arca |
| Issuer | BlackRock (iShares) | Vanguard |
| Category | US investment-grade bonds | US investment-grade bonds |
| Tracks | Bloomberg U.S. Aggregate Bond Index | US investment-grade bond index |
| Launched | 2003 | 2007 |
| Regular dividend | Yes | Yes |
| Full profile | Read the profile → | Read the profile → |
Price chart
Live data by TradingViewKey differences
Issuer
AGG is from iShares (BlackRock). BND is from Vanguard.
Index
AGG follows the Bloomberg U.S. Aggregate Bond Index. BND follows a float-adjusted version of the same broad market.
Launch
AGG launched in 2003 and BND in 2007.
Method
Both buy a sample of bonds that approximates the index, instead of every bond.
In common
Both pay interest income typically monthly, and both lose value when interest rates rise.
What to check before choosing
- What are the current expense ratios of each fund?
- Which fund does your broker offer without commission?
- How much interest-rate risk are you comfortable with?
This is general education, not a recommendation. Fees, yields and prices change, so check current figures with the issuer or your broker.
Frequently asked questions
Is AGG or BND better?
They are nearly identical. Compare the current fees and your broker’s costs.
Do bond ETFs pay dividends?
They pay interest distributions, usually monthly. They are not dividends from company profits.
Can bond ETFs lose money?
Yes. Rising interest rates lower bond prices, and so lower the fund’s value.
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Past performance and projected returns do not guarantee future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions.