📊 BND vs AGG vs SCHZ · Total Bond ETF Comparison

BND vs AGG vs SCHZ: Which Total Bond ETF Should You Own?

All three charge 0.03% and track the US aggregate bond market. This is the bond version of the SPY vs VOO vs IVV question. Pick based on your brokerage — the funds are functionally identical.

BND: Vanguard · $130B AUM AGG: iShares · $120B AUM SCHZ: Schwab · $10B AUM

BND vs AGG vs SCHZ: Side-by-Side

	BND	AGG	SCHZ
Full name	Vanguard Total Bond Market ETF	iShares Core US Aggregate Bond ETF	Schwab US Aggregate Bond ETF
Issuer	Vanguard	iShares	Schwab
Expense ratio	0.03%	0.03%	0.03%
AUM	$130B	$120B	$10B
Holdings	11,000 bonds	11,500 bonds	6,500 bonds
Index	Bloomberg Agg (Float Adj.)	Bloomberg Agg	Bloomberg Agg
Duration	~6.1 years	~6.0 years	~6.0 years
Inception	2007	2003	2011
1-year return	+5.8%	+5.7%	+5.7%
5-year return	+0.4%	+0.3%	+0.3%

Returns approximate. Past performance does not guarantee future results.

The BFF Take

BND or AGG — the choice is almost entirely about brokerage. At 0.03%, all three cost the same. All three track the Bloomberg US Aggregate Bond Index (BND uses a float-adjusted version with slightly more holdings). All three hold a mix of US Treasuries (~45%), mortgage-backed securities (~25%), and investment-grade corporate bonds (~25%) with duration around 6 years. Vanguard investors use BND. Fidelity and other non-Schwab investors typically use AGG. Schwab investors use SCHZ. The only meaningful difference: BND uses a float-adjusted index that excludes bonds held in the Fed's balance sheet, resulting in slightly more holdings (11,000 vs 11,500) with marginally different index composition. In practice, BND and AGG have had nearly identical returns over every measured period. SCHZ is perfectly good but has $10B AUM versus $120-130B — lower liquidity, though still plenty for individual investors. One thing all three share: significant interest rate sensitivity. With 6-year duration, a 1% rise in rates causes approximately 6% price decline. They lost roughly 13% in 2022 when the Fed raised rates aggressively. This is not a short-term savings vehicle.

Who Each Fund Is Built For

BND

Best for

Vanguard brokerage account holders
3-fund portfolio bond component
Slightly broader float-adjusted index
Largest bond ETF by AUM

AGG

Best for

Fidelity and non-Vanguard brokerage users
Oldest total bond ETF (since 2003)
Longest performance track record
iShares ecosystem preference

SCHZ

Best for

Schwab brokerage account holders
Commission-free trading at Schwab
Same cost, same index as AGG
Schwab 3-fund portfolio pairing with SCHB/SCHI

Frequently Asked Questions

Is BND the same as AGG?

Nearly identical. Both track the Bloomberg US Aggregate Bond Index, hold a similar mix of Treasuries, mortgage-backed securities, and investment-grade corporates, and charge 0.03%. BND uses a float-adjusted version of the index that excludes bonds held by the Federal Reserve, resulting in slightly different holdings counts. Over every measured period, the two funds have performed within 0.05% of each other annually. For practical purposes, they are the same fund from different issuers.

Did BND, AGG, and SCHZ all lose money in 2022?

Yes. All three fell approximately 13% in 2022 when the Federal Reserve raised interest rates by 425 basis points — the fastest rate-hiking cycle in decades. With ~6-year duration, a 4.25% rate increase produces roughly 25-26% theoretical price decline. Coupon income (roughly 2%) partially offset this, resulting in the ~13% calendar year loss. This was the worst single year for investment-grade bonds in modern history. It is a reminder that bond funds with 6-year duration are not cash equivalents and carry meaningful interest rate risk.

Should I use BND or BNDX (international bonds)?

BND holds US bonds only. BNDX holds international investment-grade bonds hedged to USD. Together, BND + BNDX approximate the global bond market, similar to how VTI + VXUS approximates the global equity market. The case for adding BNDX: geographic diversification, exposure to different interest rate cycles. The case against: international bonds have historically provided minimal diversification benefit over US bonds (they are all investment-grade and broadly correlated in risk-off periods) and the hedging cost reduces yield. Most Bogleheads-style 3-fund portfolios use BND or AGG alone for simplicity.

What is the yield on BND, AGG, and SCHZ?

All three yield approximately 4.5-5.0% as of mid-2026, reflecting the higher interest rate environment since 2022. This is the SEC 30-day yield, which represents the most current income based on current holdings. The yield changes continuously as bonds mature and are replaced. In 2021, when rates were near zero, BND yielded approximately 1.5%. Bond fund yields reflect the interest rate environment, not a fixed return. Unlike a CD or individual bond, the yield you see today changes over time.

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Past performance does not guarantee future results. Fund data is approximate. Nothing on ETF BFF is personalized financial advice.