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AGG vs. BND

iShares Core U.S. Aggregate Bond ETF

AGG
$--
vs

Vanguard Total Bond Market ETF

BND
$--

Correlation

1.00
AGGiShares Core U.S. Aggregate Bond ETF
BNDVanguard Total Bond Market ETF

What is AGG?

The iShares Core U.S. Aggregate Bond ETF seeks investment results that correspond generally to the price and yield performance before fees and expenses of the total United States investment grade bond market as defined by the Bloomberg U.S. Aggregate Bond Index.

Snapshot
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AGG iShares Core U.S. Aggregate Bond ETF
BND Vanguard Total Bond Market ETF
Inception date
Sep 22 2003
Apr 03 2007
Expense ratio
0.03%
0.03%
AGG and BND have the same expense ratio, meaning it’s equally as costly to invest in either one.
Type
US Bonds
US Bonds
AGG targets investing in US Bonds, while BND targets investing in US Bonds.
Fund owner
Blackrock (iShares)
Vanguard
AGG is managed by Blackrock (iShares), while BND is managed by Vanguard.
Volume (1m avg. daily)
$631,408,505
$433,296,798
Both AGG and BND are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$91,680,069,240
$94,675,540,467
AGG has more assets under management than BND by $2,995,471,227. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
Bloomberg US Aggregate Bond Index
Bloomberg U.S. Aggregate Float Adjusted Index
AGG is based off of the Bloomberg US Aggregate Bond Index, while BND is based off of the Bloomberg U.S. Aggregate Float Adjusted Index
Inverse/Leveraged
No
No
AGG and BND use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
AGG and BND both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
No
AGG and BND may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
Neither AGG nor BND require a K1.
AGG and BND’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toAGG

#DPE

Diversify with Private Equity

Category

Getting Started, Go Global, Diversification

Risk Rating

Moderate

Automated Strategies
Related toBND

#PTAC

Pick the Trending Asset Class

Category

Momentum, Tactical Asset Allocation, Be Risk Aware, Ride the Momentum

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.