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25 important things you should know about BlackRock AGG ETF

Updated: Last Sunday
100
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 10-year return above the benchmark
  • 15-year return above the benchmark
  • Low expense ratio
Bear Case
  • No Bear case arguments for now!

Before we start: if you’re looking for AGG “stock” price, you can quickly find it out by visiting Finny and typing "AGG quote". If you’re looking for a quick scoop on AGG "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "AGG". You’ll get all this info in one place.

Are you looking to buy or sell AGG? Or perhaps you’re looking for AGG fact sheet, and learn about its alternatives? If so, you came to the right place.

In this AGG ETF review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: AGG performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: AGG buy or sell; the pros and cons of investing in AGG ETF;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to AGG.

And here is the list of questions we’ll answer:

  1. Describe iShares Core U.S. Aggregate Bond ETF (AGG).
  2. What is AGG underlying index?
  3. What are AGG holdings?
  4. What is AGG performance? What are AGG historical returns?
  5. How many up and down years did AGG have historically?
  6. What is AGG dividend yield?
  7. What is AGG expense ratio?
  8. What is AGG tax efficiency (tax-cost ratio)?
  9. What is AGG beta? How would you assess AGG risk?
  10. What is AGG Sharpe ratio?
  11. What is AGG Finny Score? AGG buy or sell?
  12. What are the pros of investing in AGG? What are AGG buy reasons?
  13. What are the cons of investing in AGG? What are AGG sell reasons?
  14. Compare and contrast: AGG vs BND.
  15. Compare and contrast: AGG vs LQD.
  16. Compare and contrast: AGG vs IUSB.
  17. Compare and contrast: AGG vs SCHZ.
  18. Compare and contrast: AGG vs TLT.
  19. Compare and contrast: AGG vs FXNAX.
  20. Compare and contrast: AGG vs BLV.
  21. Compare and contrast: AGG vs BIV.
  22. Compare and contrast: AGG vs MUB.
  23. Compare and contrast: AGG vs SHV.
  24. Compare and contrast: AGG vs SHY.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe iShares Core U.S. Aggregate Bond ETF (AGG).

The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the United States investment grade securities markets as defined by the Barclays Capital U.S. Aggregate Index.

2. What is AGG underlying index?

Bloomberg Barclays U.S. Aggregate Bond Index.

3. What are AGG top holdings?

AGG has 0 stock holdings and 7,698 bond holdings.

The top 9 holdings represent 5.67% of total assets. Here are the top holdings:

Name Symbol % Assets
Fnma Pass-Thru I 3% N/A 1.01%
United States Treasury Notes 2.5% N/A 0.67%
Fgold 30yr 2016 Production N/A 0.66%
United States Treasury Notes 1.5% N/A 0.61%
Gnma2 30yr 2017 Production N/A 0.60%
Gnma2 30yr 2016 Production N/A 0.59%
United States Treasury Notes 1.13% N/A 0.54%
United States Treasury Notes 1.88% N/A 0.52%
United States Treasury Notes 2% N/A 0.47%

4. What is AGG performance? What are AGG historical returns?

AGG has generated the following returns:

  • 1-month return is -0.10%;
  • 3-month return is 0.92%;
  • 1-year return is 7.76%;
  • 3-year return is 5.13%;
  • 5-year return is 4.18%;
  • 10-year return is 3.61%;
  • 15-year return is 4.32%.

5. How many up and down years did AGG have historically?

In the last 10 years, AGG had 9 up years and 1 down year.

AGG up and down years

6. What is AGG dividend yield?

AGG yield is 2.54%.

7. What is AGG expense ratio?

AGG expense ratio is 0.04%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

AGG expenses

8. What is AGG tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.02%;
  • 3-year ax cost ratio is 1.06%.
AGG tax costs

9. What is AGG beta? How would you assess AGG risk?

  • 3-year beta is 1.00;
  • 5-year beta is 1.00;
  • 10-year beta is 1.00;
  • 15-year beta is 1.01.
AGG Beta

10. What is AGG Sharpe ratio?

  • 3-year Sharpe ratio is 1.07;
  • 5-year Sharpe ratio is 0.99;
  • 10-year Sharpe ratio is 1.05;
  • 15-year Sharpe ratio is 0.95.
AGG Sharpe ratio

Analysis

11. What is Finny Score? buy or sell?

Finny Score is 100. Our quantitative analysis shows 5 reasons to buy and 0 reasons to sell it, resulting in the Finny Score of 100.

12. What are the pros of investing in AGG? What are AGG buy reasons?

The following are AGG strengths from our perspective:

  • <strong>AGG 3-year return</strong> is 5.13%, which is in line with the 3-year return of the benchmark index (Bloomberg Barclays US Aggregate Bond TR USD), 5.24%.
  • <strong>AGG 5-year return</strong> is 4.18%, which is in line with the 5-year return of the benchmark index (Bloomberg Barclays US Aggregate Bond TR USD), 4.23%.
  • <strong>AGG 10-year return</strong> is 3.61%, which is in line with the 10-year return of the benchmark index (Bloomberg Barclays US Aggregate Bond TR USD), 3.73%.
  • <strong>AGG 15-year return</strong> is 4.32%, which is in line with the 15-year return of the benchmark index (Bloomberg Barclays US Aggregate Bond TR USD), 4.47%.
  • <strong>AGG expense ratio</strong> is 0.04%, which is considered low. Nice job picking a low-cost fund.

13. What are the cons of investing in AGG? What are AGG negatives?

There are no visible red flags.

Alternatives

14. Compare and contrast: AGG vs BND.

Both AGG and BND are ETFs. AGG has a lower 5-year return than BND (4.18% vs 4.24%). AGG and BND have the same expense ratio (0.04%). Below is the comparison between AGG and BND.

AGG BND
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. - Broad Market Investment Grade
Net Assets $72.06B $52.06B
Expense Ratio 0.04% 0.04%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index Bloomberg Barclays U.S. Aggregate Float Adjusted Index
YTD Return 6.84% 7%
1-Year Return 7.76% 8.05%
3-Year Return 5.13% 5.25%
5-Year Return 4.18% 4.24%
10-Year Return 3.61% 3.67%
Dividend Yield 2.54% 2.57%

BND profile: The Fund seeks to track the performance of a broad, market-weighted bond index.

For further information, check out AGG vs BND comparison details.

15. Compare and contrast: AGG vs LQD.

Both AGG and LQD are ETFs. AGG has a lower 5-year return than LQD (4.18% vs 6.61%). AGG has a lower expense ratio than LQD (0.04% vs 0.15%). Below is the comparison between AGG and LQD.

AGG LQD
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. - Corporate Investment Grade
Net Assets $72.06B $45.18B
Expense Ratio 0.04% 0.15%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index Markit iBoxx $ Liquid Investment Grade Index
YTD Return 6.84% 8.14%
1-Year Return 7.76% 11.05%
3-Year Return 5.13% 7.44%
5-Year Return 4.18% 6.61%
10-Year Return 3.61% 5.73%
Dividend Yield 2.54% 3.2%

LQD profile: The Fund seeks to track the investment results of the Markit iBoxx USD Liquid Investment Grade Index which is a rules-based index consisting of liquid, US dollar-denominated, investment grade corporate bonds for sale in the US. The Fund invests at least 90% in component securities and at least 95% in corporate bonds.

For further information, check out AGG vs LQD comparison details.

16. Compare and contrast: AGG vs IUSB.

Both AGG and IUSB are ETFs. AGG has a lower 5-year return than IUSB (4.18% vs 4.33%). AGG has a lower expense ratio than IUSB (0.04% vs 0.06%). Below is the comparison between AGG and IUSB.

AGG IUSB
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. - Broad Market
Net Assets $72.06B $4.77B
Expense Ratio 0.04% 0.06%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index Bloomberg Barclays U.S. Universal Index
YTD Return 6.84% 6.48%
1-Year Return 7.76% 7.57%
3-Year Return 5.13% 5.09%
5-Year Return 4.18% 4.33%
10-Year Return 3.61% N/A
Dividend Yield 2.54% 2.92%

IUSB profile: The Fund seeks investment results of an index composed of US.dollar-denominated bonds that are rated either investment-grade or high yield. The Fund generally invests at least 80% of its assets in the securities of the Underlying Index. The Underlying Index includes U.S. Treasury bonds and government-related bonds.

For further information, check out AGG vs IUSB comparison details.

17. Compare and contrast: AGG vs SCHZ.

Both AGG and SCHZ are ETFs. AGG and SCHZ have the same 5-year return (4.18%). AGG and SCHZ have the same expense ratio (0.04%). Below is the comparison between AGG and SCHZ.

AGG SCHZ
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. - Broad Market Investment Grade
Net Assets $72.06B $7.52B
Expense Ratio 0.04% 0.04%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index Bloomberg Barclays U.S. Aggregate Bond Index
YTD Return 6.84% 7%
1-Year Return 7.76% 7.92%
3-Year Return 5.13% 5.14%
5-Year Return 4.18% 4.18%
10-Year Return 3.61% N/A
Dividend Yield 2.54% 2.66%

SCHZ profile: The Fund seeks to track the total return of the Barclays Capital U.S Aggregate Bond Index. This Index measures the performance of the U.S. investment grade, taxable bond market.

For further information, check out AGG vs SCHZ comparison details.

18. Compare and contrast: AGG vs TLT.

Both AGG and TLT are ETFs. AGG has a lower 5-year return than TLT (4.18% vs 8.55%). AGG has a lower expense ratio than TLT (0.04% vs 0.15%). Below is the comparison between AGG and TLT.

AGG TLT
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. Government Treasury Long-Term
Net Assets $72.06B $18.80B
Expense Ratio 0.04% 0.15%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index ICE U.S. Treasury 20+ Year Bond Index
YTD Return 6.84% 22.02%
1-Year Return 7.76% 19.21%
3-Year Return 5.13% 11.59%
5-Year Return 4.18% 8.55%
10-Year Return 3.61% 7.78%
Dividend Yield 2.54% 1.78%

TLT profile: The Fund seeks investment results that correspond generally to the price and yield performance of the long-term sector of the U.S. Treasury market as defined by the Barclays Capital 20+ Year Treasury Index.

For further information, check out AGG vs TLT comparison details.

19. Compare and contrast: AGG vs FXNAX.

AGG is an ETF, whereas FXNAX is a mutual fund. AGG has a lower 5-year return than FXNAX (4.18% vs 4.3%). AGG has a higher expense ratio than FXNAX (0.04% vs 0.03%). Below is the comparison between AGG and FXNAX.

AGG FXNAX
Segment Fixed Income: U.S. - Broad Market Investment Grade
Net Assets $72.06B $46.12B
Expense Ratio 0.04% 0.03%
Management Style passive (index-based) N/A
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index N/A
YTD Return 6.84% 7.28%
1-Year Return 7.76% 7.58%
3-Year Return 5.13% 5.31%
5-Year Return 4.18% 4.3%
10-Year Return 3.61% 3.69%
Dividend Yield 2.54% 2.67%

FXNAX profile: The Fund seeks to provide investment results that correspond to the total return of the bonds in the Barclays Aggregate Bond Index (the Aggregate Bond Index). The Fund invests at least 80% of its assets in bonds of the Index using statistical sampling techniques.

For further information, check out AGG vs FXNAX comparison details.

20. Compare and contrast: AGG vs BLV.

Both AGG and BLV are ETFs. AGG has a lower 5-year return than BLV (4.18% vs 8.95%). AGG has a lower expense ratio than BLV (0.04% vs 0.07%). Below is the comparison between AGG and BLV.

AGG BLV
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. - Government/Credit Investment Grade Long-Term
Net Assets $72.06B $4.95B
Expense Ratio 0.04% 0.07%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index
YTD Return 6.84% 14.83%
1-Year Return 7.76% 15.84%
3-Year Return 5.13% 10.34%
5-Year Return 4.18% 8.95%
10-Year Return 3.61% 7.68%
Dividend Yield 2.54% 3.08%

BLV profile: The Fund seeks to track the performance of a market-weighted bond index with a long-term dollar-weighted average maturity. The Fund employs an indexing investment approach to track the performance of the Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index and invests by sampling the index.

For further information, check out AGG vs BLV comparison details.

21. Compare and contrast: AGG vs BIV.

Both AGG and BIV are ETFs. AGG has a lower 5-year return than BIV (4.18% vs 4.96%). AGG has a lower expense ratio than BIV (0.04% vs 0.07%). Below is the comparison between AGG and BIV.

AGG BIV
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. - Government/Credit Investment Grade Intermediate
Net Assets $72.06B $12.15B
Expense Ratio 0.04% 0.07%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index Bloomberg Barclays U.S. 5-10 Year Government/Credit Float Adjusted Index
YTD Return 6.84% 9.08%
1-Year Return 7.76% 9.99%
3-Year Return 5.13% 6.16%
5-Year Return 4.18% 4.96%
10-Year Return 3.61% 4.57%
Dividend Yield 2.54% 2.61%

BIV profile: The Fund seeks to track the performance of a market-weighted bond index with an intermediate-term dollar-weighted average maturity. The Fund employs an indexing investment approach designed to track the performance of the Barclays U.S. 5-10 Year Government/Credit Float Adjusted Index.

For further information, check out AGG vs BIV comparison details.

22. Compare and contrast: AGG vs MUB.

Both AGG and MUB are ETFs. AGG has a higher 5-year return than MUB (4.18% vs 3.64%). AGG has a lower expense ratio than MUB (0.04% vs 0.07%). Below is the comparison between AGG and MUB.

AGG MUB
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. - Municipals Investment Grade
Net Assets $72.06B $15.57B
Expense Ratio 0.04% 0.07%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index S&P National AMT-Free Municipal Bond Index
YTD Return 6.84% 3.31%
1-Year Return 7.76% 4.49%
3-Year Return 5.13% 3.85%
5-Year Return 4.18% 3.64%
10-Year Return 3.61% 3.59%
Dividend Yield 2.54% 2.44%

MUB profile: The Fund seeks results that correspond generally to the price and yield performance, before fees and expenses, of the municipal bond sector of the United States as defined by the S&P National Municipal Bond Index.

For further information, check out AGG vs MUB comparison details.

23. Compare and contrast: AGG vs SHV.

Both AGG and SHV are ETFs. AGG has a higher 5-year return than SHV (4.18% vs 1.18%). AGG has a lower expense ratio than SHV (0.04% vs 0.15%). Below is the comparison between AGG and SHV.

AGG SHV
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. Government Treasury Cash Equivalents
Net Assets $72.06B $25.05B
Expense Ratio 0.04% 0.15%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index ICE U.S. Treasury Short Bond Index
YTD Return 6.84% 0.8%
1-Year Return 7.76% 1.39%
3-Year Return 5.13% 1.71%
5-Year Return 4.18% 1.18%
10-Year Return 3.61% 0.61%
Dividend Yield 2.54% 2%

SHV profile: The Fund seeks investment results that correspond to the short-term sector of the U.S. Treasury market as defined by the Barclays Capital Short U.S. Treasury Index. The Index includes all publicly issued U.S. Treasury securities that have a remaining maturity of between 1 and 12 months and are rated investment grade.

For further information, check out AGG vs SHV comparison details.

24. Compare and contrast: AGG vs SHY.

Both AGG and SHY are ETFs. AGG has a higher 5-year return than SHY (4.18% vs 1.69%). AGG has a lower expense ratio than SHY (0.04% vs 0.15%). Below is the comparison between AGG and SHY.

AGG SHY
Segment Fixed Income: U.S. - Broad Market Investment Grade Fixed Income: U.S. Government Treasury Short-Term
Net Assets $72.06B $23.60B
Expense Ratio 0.04% 0.15%
Management Style passive (index-based) passive (index-based)
Underlying Index Bloomberg Barclays U.S. Aggregate Bond Index ICE U.S. Treasury 1-3 Year Bond Index
YTD Return 6.84% 2.99%
1-Year Return 7.76% 3.74%
3-Year Return 5.13% 2.48%
5-Year Return 4.18% 1.69%
10-Year Return 3.61% 1.16%
Dividend Yield 2.54% 1.95%

SHY profile: The Fund seeks investment results that correspond generally to the price and yield performance of the short-term sector of the U.S. Treasury market as defined by the Barclays Capital 1-3 Year Treasury Index.

For further information, check out AGG vs SHY comparison details.

In the AGG review, we covered AGG key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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