ETF Versus

AGG vs VUG

iShares Core US Aggregate Bond ETF vs Vanguard Growth Index Fund ETF Shares

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
VUG Vanguard

Vanguard Growth Index Fund ETF Shares (VUG) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a very low expense ratio of 0.03%. The fund offers a modest dividend yield of 0.45%. Launched in 2004, the fund has a 22-year track record.

AUM: $179.8B ER: 0.03% Yield: 0.45% Since: Jan 26, 2004

Quick Verdict

Over the past year, VUG has significantly outperformed with a 18.0% return vs 0.0%. Income investors may prefer AGG for its higher yield (3.9% vs 0.5%).

Key Metrics

Metric AGG VUG
Expense Ratio 0.03% 0.03%
Dividend Yield 3.9% 0.5%
Fund Family iShares Vanguard
Category US Aggregate Bond US Large Cap Growth

Performance Chart

Indexed to 100 at start (5-year comparison)

75 98 121 144 167 190 2021-04 2022-06 2023-09 2024-12 2026-04
AGG -13.0%
VUG +66.0%

Performance Comparison

Period AGG VUG Difference
1 Month -1.67% -4.47% +2.80%
3 Months -0.85% -9.18% +8.33%
6 Months -1.18% -8.28% +7.10%
YTD -0.85% -9.18% +8.33%
1 Year +0.04% +18.01% -17.97%
3 Years -0.82% +77.18% -78.00%
5 Years -13.01% +66.01% -79.02%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period AGG Fees VUG Fees You Save
$10.000 10 years $60 $60 $0
$10.000 20 years $258 $258 $0
$10.000 30 years $835 $835 $0
$50.000 10 years $299 $299 $0
$50.000 30 years $4.176 $4.176 $0
$100.000 30 years $8.352 $8.352 $0

Risk Metrics

Based on 5 years of daily returns

Metric AGG VUG
Annualized Volatility 6.1% 22.2%
Max Drawdown -21.4% -36.0%
Sharpe Ratio -1.17 0.37

Dividend Comparison

Metric AGG VUG
Annual Dividend (per share) $3.90 $1.99
Dividend Yield 3.94% 0.45%
Distribution Frequency Monthly Quarterly

Top Holdings

VUG Top Holdings

NameWeight
NVIDIA CorporationNVDA12.82%
Apple Inc.AAPL12.23%
Microsoft CorporationMSFT9.15%
Alphabet Inc.GOOG4.49%
Meta Platforms, Inc.META4.44%
Amazon.com, Inc.AMZN4.41%
Broadcom Inc.AVGO3.95%
Tesla, Inc.TSLA3.58%
Eli Lilly and CompanyLLY2.82%

Which One Should You Choose?

Choose VUG 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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