What is the expense ratio of AGG vs IEFA?

AGG has an expense ratio of 0.03%, while IEFA has an expense ratio of 0.07%.

AGG vs IEFA

iShares Core US Aggregate Bond ETF vs iShares Core MSCI EAFE 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

IEFA iShares

iShares Core MSCI EAFE ETF (IEFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges a low expense ratio of 0.07%. The fund offers an attractive dividend yield of 3.46%. Launched in 2012, the fund has a 14-year track record.

AUM: $164.3B ER: 0.07% Yield: 3.46% Since: Oct 18, 2012

Quick Verdict

AGG has a slightly lower expense ratio (0.03% vs 0.07%), saving about $80 per $10,000 over 10 years. Over the past year, IEFA has significantly outperformed with a 21.2% return vs 0.0%.

Key Metrics

Metric	AGG	IEFA
Expense Ratio	0.03%	0.07%
Dividend Yield	3.9%	3.5%
Fund Family	iShares	iShares
Category	US Aggregate Bond	International Developed

Performance Chart

Indexed to 100 at start (5-year comparison)

AGG -13.0%

IEFA +24.0%

Performance Comparison

Period	AGG	IEFA	Difference
1 Month	-1.67%	-4.68%	+3.01%
3 Months	-0.85%	+1.73%	-2.58%
6 Months	-1.18%	+3.46%	-4.64%
YTD	-0.85%	+1.73%	-2.58%
1 Year	+0.04%	+21.19%	-21.15%
3 Years	-0.82%	+36.36%	-37.18%
5 Years	-13.01%	+23.97%	-36.98%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	AGG Fees	IEFA Fees	You Save
$10.000	10 years	$60	$140	$80
$10.000	20 years	$258	$600	$342
$10.000	30 years	$835	$1.938	$1.103
$50.000	10 years	$299	$698	$398
$50.000	30 years	$4.176	$9.692	$5.516
$100.000	30 years	$8.352	$19.383	$11.032

Risk Metrics

Based on 5 years of daily returns

Metric	AGG	IEFA
Annualized Volatility	6.1%	16.6%
Max Drawdown	-21.4%	-33.1%
Sharpe Ratio	-1.17	0.07

Dividend Comparison

Metric	AGG	IEFA
Annual Dividend (per share)	$3.90	$3.18
Dividend Yield	3.94%	3.46%
Distribution Frequency	Monthly	Semi-Annual or Annual

Top Holdings

IEFA Top Holdings

Name	Weight
ASML Holding N.V.!ams/ASML	2.18%
AstraZeneca PLC!lon/AZN	1.25%
Novartis AG!swx/NOVN	1.21%
Roche Holding AG!swx/ROP	1.17%
HSBC Holdings plc!lon/HSBA	1.16%
Shell plc!lon/SHEL	1.12%
Nestlé S.A.!swx/NESN	1.05%
Toyota Motor Corporation!tyo/7203	0.85%
Commonwealth Bank of Australia!asx/CBA	0.85%
Mitsubishi UFJ Financial Group, Inc.!tyo/8306	0.81%

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 IEFA 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.

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