AGG vs SPY
iShares Core US Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Last updated: 2026-04-02
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.
State Street SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund issued by State Street that provides exposure to large-cap U.S. equities across growth and value styles. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.13%. Launched in 1993, the fund has a 33-year track record.
Quick Verdict
AGG has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. Over the past year, SPY has significantly outperformed with a 16.8% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 1.1%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
SPY Top Holdings
| Name | Weight |
|---|---|
| NVIDIA CorporationNVDA | 7.58% |
| Apple Inc.AAPL | 6.66% |
| Microsoft CorporationMSFT | 4.91% |
| Amazon.com, Inc.AMZN | 3.64% |
| Broadcom Inc.AVGO | 2.62% |
| Alphabet Inc.GOOG | 2.40% |
| Meta Platforms, Inc.META | 2.24% |
| Tesla, Inc.TSLA | 1.87% |
| Berkshire Hathaway Inc.BRK.B | 1.57% |
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 SPY 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.