ETF Versus

AGG vs IAU

iShares Core US Aggregate Bond ETF vs iShares Gold Trust

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
IAU iShares

iShares Gold Trust (IAU) is an exchange-traded fund issued by iShares that provides exposure to gold securities. It charges a moderate expense ratio of 0.25%. Launched in 2005, the fund has a 21-year track record.

AUM: $68.7B ER: 0.25% Yield: 0.00% Since: Jan 21, 2005

Quick Verdict

AGG is significantly cheaper at 0.03% vs 0.25% expense ratio, saving you approximately $435 per $10,000 invested over 10 years. Over the past year, IAU has significantly outperformed with a 52.4% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 0.0%).

Key Metrics

Metric AGG IAU
Expense Ratio 0.03% 0.25%
Dividend Yield 3.9% 0.0%
Fund Family iShares iShares
Category US Aggregate Bond Gold

Performance Chart

Indexed to 100 at start (5-year comparison)

80 124 168 212 256 300 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
IAU +172.6%

Performance Comparison

Period AGG IAU Difference
1 Month -1.67% -10.66% +8.99%
3 Months -0.85% +9.96% -10.81%
6 Months -1.18% +22.48% -23.66%
YTD -0.85% +9.96% -10.81%
1 Year +0.04% +52.36% -52.32%
3 Years -0.82% +138.19% -139.01%
5 Years -13.01% +172.58% -185.59%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees IAU Fees You Save
$10.000 10 years $60 $495 $435
$10.000 20 years $258 $2.111 $1.853
$10.000 30 years $835 $6.758 $5.923
$50.000 10 years $299 $2.473 $2.173
$50.000 30 years $4.176 $33.792 $29.616
$100.000 30 years $8.352 $67.584 $59.232

Risk Metrics

Based on 5 years of daily returns

Metric AGG IAU
Annualized Volatility 6.1% 17.7%
Max Drawdown -21.4% -20.9%
Sharpe Ratio -1.17 0.97

Dividend Comparison

Metric AGG IAU
Annual Dividend (per share) $3.90 $0.00
Dividend Yield 3.94% 0.00%
Distribution Frequency Monthly None

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 IAU if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose AGG if...

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

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