ETF Versus

AGG vs LQD

iShares Core US Aggregate Bond ETF vs iShares iBoxx $ Investment Grade 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
LQD iShares

iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund issued by iShares that provides exposure to investment-grade U.S. corporate bonds. It charges a low expense ratio of 0.14%. The fund offers a high dividend yield of 4.53%. Launched in 2002, the fund has a 24-year track record.

AUM: $29.2B ER: 0.14% Yield: 4.53% Since: Jul 22, 2002

Quick Verdict

AGG is significantly cheaper at 0.03% vs 0.14% expense ratio, saving you approximately $218 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (0.0% vs 0.0%), tracking closely. Income investors may prefer LQD for its higher yield (4.5% vs 3.9%).

Key Metrics

Metric AGG LQD
Expense Ratio 0.03% 0.14%
Dividend Yield 3.9% 4.5%
Fund Family iShares iShares
Category US Aggregate Bond US Investment Grade Corporate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 81 87 93 99 105 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
LQD -16.4%

Performance Comparison

Period AGG LQD Difference
1 Month -1.67% -2.04% +0.37%
3 Months -0.85% -1.36% +0.51%
6 Months -1.18% -2.59% +1.41%
YTD -0.85% -1.36% +0.51%
1 Year +0.04% +0.00% +0.04%
3 Years -0.82% -1.16% +0.34%
5 Years -13.01% -16.40% +3.39%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees LQD Fees You Save
$10.000 10 years $60 $278 $218
$10.000 20 years $258 $1.194 $935
$10.000 30 years $835 $3.841 $3.005
$50.000 10 years $299 $1.391 $1.092
$50.000 30 years $4.176 $19.203 $15.027
$100.000 30 years $8.352 $38.406 $30.054

Risk Metrics

Based on 5 years of daily returns

Metric AGG LQD
Annualized Volatility 6.1% 8.7%
Max Drawdown -21.4% -27.9%
Sharpe Ratio -1.17 -0.89

Dividend Comparison

Metric AGG LQD
Annual Dividend (per share) $3.90 $4.92
Dividend Yield 3.94% 4.53%
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 LQD 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