BND vs AGG: Two Nearly Identical Bond ETFs
Both track US investment-grade bonds. Both cost 0.03%. Both yield around the same amount. Here's how they differ — and why most investors can choose either.
BND (Vanguard) and AGG (BlackRock/iShares) are about as interchangeable as two funds can be. Both track US investment-grade bonds — BND follows the Bloomberg US Aggregate Float Adjusted Index while AGG tracks the Bloomberg US Aggregate Bond Index. Both charge 0.03% and both hold thousands of government and corporate bonds with similar duration and yield characteristics. The practical difference: BND's index uses a float-adjusted methodology (slightly reduces the weight of bonds that are harder to trade), and AGG has slightly more holdings. Neither difference is meaningful for most investors. The real decision driver is brokerage: Vanguard customers often get BND commission-free; Fidelity and Schwab customers may prefer AGG (iShares). Own whichever trades free at your broker.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 BND vs AGG: Key Facts Side by Side
| Metric | BND | AGG |
|---|---|---|
| Fund Name | Vanguard Total Bond Market Index Fund ETF Shares | iShares Core U.S. Aggregate Bond ETF |
| Issuer | Vanguard | BlackRock |
| Tracks Index | Bloomberg US Aggregate Float Adjusted | Bloomberg US Aggregate Bond |
| Expense Ratio | 0.03% | 0.03% |
| Cost per $10K/yr | $3.00 | $3.00 |
| AUM | $389.1B | $135.7B |
| Holdings | 17,652 | 11,500 |
| Inception | 2007 | 2003 |
| 1-Year Return | -5.96% | -6.04% |
| 3-Year Return | +4.43% | +4.43% |
| 5-Year Return | -0.48% | -0.48% |
| Dividend Yield | 4.17% | 4.19% |
| Holdings Overlap | ~70% — both track US investment-grade bonds, different index providers — see full overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.00% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 BND vs AGG: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want broader diversification (17,652 holdings vs 11,500)
- want the entire US stock market: large, mid, and small cap in one fund
- want the entire US stock market: large, mid, and small cap in one fund
- already use BlackRock and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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