What is the expense ratio of AGG vs IWM?

AGG has an expense ratio of 0.03%, while IWM has an expense ratio of 0.19%.

AGG vs IWM

iShares Core US Aggregate Bond ETF vs iShares Russell 2000 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

IWM iShares

iShares Russell 2000 ETF (IWM) is an exchange-traded fund issued by iShares that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a moderate expense ratio of 0.19%. The fund offers a moderate dividend yield of 1.02%. Launched in 2000, the fund has a 26-year track record.

AUM: $69.0B ER: 0.19% Yield: 1.02% Since: May 22, 2000

Quick Verdict

AGG is significantly cheaper at 0.03% vs 0.19% expense ratio, saving you approximately $317 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 25.1% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 1.0%).

Key Metrics

Metric	AGG	IWM
Expense Ratio	0.03%	0.19%
Dividend Yield	3.9%	1.0%
Fund Family	iShares	iShares
Category	US Aggregate Bond	US Small Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

AGG -13.0%

IWM +10.9%

Performance Comparison

Period	AGG	IWM	Difference
1 Month	-1.67%	-5.40%	+3.73%
3 Months	-0.85%	+0.31%	-1.16%
6 Months	-1.18%	+1.52%	-2.70%
YTD	-0.85%	+0.31%	-1.16%
1 Year	+0.04%	+25.09%	-25.05%
3 Years	-0.82%	+39.83%	-40.65%
5 Years	-13.01%	+10.93%	-23.94%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	AGG Fees	IWM Fees	You Save
$10.000	10 years	$60	$377	$317
$10.000	20 years	$258	$1.613	$1.355
$10.000	30 years	$835	$5.178	$4.342
$50.000	10 years	$299	$1.884	$1.585
$50.000	30 years	$4.176	$25.888	$21.712
$100.000	30 years	$8.352	$51.776	$43.424

Risk Metrics

Based on 5 years of daily returns

Metric	AGG	IWM
Annualized Volatility	6.1%	22.6%
Max Drawdown	-21.4%	-33.1%
Sharpe Ratio	-1.17	0.01

Dividend Comparison

Metric	AGG	IWM
Annual Dividend (per share)	$3.90	$2.54
Dividend Yield	3.94%	1.02%
Distribution Frequency	Monthly	Quarterly

Top Holdings

IWM Top Holdings

Name	Weight
Bloom Energy CorporationBE	1.01%
FabrinetFN	0.69%
Nextpower Inc.NXT	0.61%
COEUR MINING INCCDE.NE	0.60%
EchoStar CorporationSATS	0.54%
Credo Technology Group Holding LtdCRDO	0.53%
Kratos Defense & Security Solutions, Inc.KTOS	0.45%
Sterling Infrastructure, Inc.STRL	0.43%
Advanced Energy Industries, Inc.AEIS	0.41%
Hecla Mining CompanyHL	0.39%

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 IWM 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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