ETF Versus

AGG vs HYG

iShares Core US Aggregate Bond ETF vs iShares iBoxx $ High Yield Corporate Bond ETF

Last updated: 2026-04-02

AGG iShares

iShares Core US Aggregate Bond ETF (AGG) is an exchange-traded fund issued by iShares that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.94%. Launched in 2003, the fund has a 23-year track record.

AUM: $137.9B ER: 0.03% Yield: 3.94% Since: Sep 22, 2003
HYG iShares

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an exchange-traded fund issued by iShares that provides exposure to below-investment-grade U.S. corporate bonds offering higher yields. It charges an above-average expense ratio of 0.49%. The fund offers a high dividend yield of 5.88%. Launched in 2007, the fund has a 19-year track record.

AUM: $16.3B ER: 0.49% Yield: 5.88% Since: Apr 4, 2007

Quick Verdict

AGG is significantly cheaper at 0.03% vs 0.49% expense ratio, saving you approximately $900 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (0.0% vs 0.9%), tracking closely. Income investors may prefer HYG for its higher yield (5.9% vs 3.9%).

Key Metrics

Metric AGG HYG
Expense Ratio 0.03% 0.49%
Dividend Yield 3.9% 5.9%
Fund Family iShares iShares
Category US Aggregate Bond US High Yield Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
HYG -8.9%

Performance Comparison

Period AGG HYG Difference
1 Month -1.67% -1.13% -0.54%
3 Months -0.85% -1.61% +0.76%
6 Months -1.18% -1.82% +0.64%
YTD -0.85% -1.61% +0.76%
1 Year +0.04% +0.86% -0.82%
3 Years -0.82% +5.62% -6.44%
5 Years -13.01% -8.89% -4.12%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees HYG Fees You Save
$10.000 10 years $60 $960 $900
$10.000 20 years $258 $4.052 $3.794
$10.000 30 years $835 $12.832 $11.997
$50.000 10 years $299 $4.799 $4.499
$50.000 30 years $4.176 $64.162 $59.986
$100.000 30 years $8.352 $128.324 $119.972

Risk Metrics

Based on 5 years of daily returns

Metric AGG HYG
Annualized Volatility 6.1% 7.6%
Max Drawdown -21.4% -19.3%
Sharpe Ratio -1.17 -0.80

Dividend Comparison

Metric AGG HYG
Annual Dividend (per share) $3.90 $4.67
Dividend Yield 3.94% 5.88%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose AGG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose HYG if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Related Comparisons

AGG vs BND AGG vs BNDX AGG vs DGRO AGG vs DVY AGG vs EEM AGG vs EFA AGG vs GLD AGG vs HDV