iShares Core U.S. Aggregate Bond ETF
AGG BondUpdated: Jul 5, 2026, 21:17 UTC
Key Metrics
Top 10 Holdings
| Holding | Ticker | Weight | Bar |
|---|---|---|---|
| BlackRock Cash Funds Instl SL Agency | BISXX | 2.77% |
About This ETF
The iShares Core U.S. Aggregate Bond ETF (AGG) is a Bond ETF with an expense ratio (TER) of 0.03% and $136.5B in assets under management., with its largest holdings being BlackRock Cash Funds Instl SL Agency. The ETF currently yields 3.96% in dividends. Year-to-date, AGG has returned +0.4%. With an expense ratio of just 0.03%, it is one of the cheapest ETFs in its category.
The index measures the performance of the total U.S. investment-grade bond market. The fund will invest at least 80% of its assets in the component securities of the underlying index and TBAs that have economic characteristics that are substantially identical to the economic characteristics of the component securities of the underlying index, and the fund will invest at least 90% of its assets in fixed income securities of the types included in the underlying index that the advisor believes will help the fund track the underlying index.
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Bond ETF comparison ›FAQ — AGG
What is the TER of AGG (iShares Core U.S. Aggregate Bond ETF)?
AGG has a Total Expense Ratio (TER) of 0.03 % per year. That sits below the bond category median (0.15 % across 8 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has AGG delivered?
Performance for AGG: YTD: +0.40 % · 3-year p.a.: +4.20 % · 5-year p.a.: +0.04 %. Over 5 years, AGG underperforms the bond category median of +0.20 % by -0.16 pp. Past performance is no guarantee of future returns.
What are the top holdings of AGG?
The five largest positions in AGG are: BISXX. The full holdings list is updated daily on this page.
Does AGG pay dividends?
AGG has a current dividend yield of 3.96 %. Distributing ETFs pay this out in cash; accumulating versions reinvest it inside the fund. Check the share class on your broker before buying.
Where can I buy or set up a savings plan for AGG?
AGG is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What Is the iShares Core U.S. Aggregate Bond ETF?
The iShares Core U.S. Aggregate Bond ETF (AGG) tracks the entire U.S. investment-grade bond market — spanning U.S. Treasuries, mortgage-backed securities (MBS) and high-quality corporate bonds. With an expense ratio of just 0.03% and assets of $135.4B, it ranks among the largest and cheapest fixed-income ETFs in the world. Many investors use it as a broadly diversified anchor for the bond sleeve of a portfolio, generating steady income at moderate risk.
Performance & Return Drivers
For bond ETFs, the income yield and price reactions to rate moves matter more than capital gains. AGG shows a 3-year return of 4.21%, while its 5-year return of 0.15% reflects the losses of the rate-hiking cycle: rising policy rates pushed bond prices lower. Year-to-date the fund stands at 0.46%. Its distribution yield of 3.95% is today the central return driver.
Over the past year the price ranged between $97.23 and $101.46. The key factors are the fund's duration and the path of U.S. yields — when rates fall, prices typically rise, and vice versa.
Risk Profile
The primary risk is interest-rate risk: when market rates rise, the prices of existing bonds fall in line with the fund's intermediate duration. Credit risk is limited by the focus on investment-grade issuers, but not zero. A meaningful share sits in mortgage-backed securities (MBS), which carry prepayment risk.
For euro-area investors, currency risk is added: AGG is denominated in U.S. dollars. A weaker dollar can erode euro-based returns even if the fund rises in USD terms. A currency-hedged variant or a euro-denominated equivalent reduces this exposure.
Who Is It Suitable For?
AGG fits investors who want to cover the fixed-income building block of a diversified portfolio cheaply and broadly. It suits medium to long horizons, investors focused on steady income (distribution yield 3.95%), and those seeking to dampen the volatility of an equity-heavy portfolio.
It is less suitable for investors chasing large capital gains — bonds structurally deliver lower returns than equities. Sharply rising rates can also cause price declines. Euro investors who do not want dollar exposure should consider a currency-hedged or euro-denominated alternative.
How It Compares to Peer Bond ETFs
Within the U.S. investment-grade space, the Vanguard Total Bond Market ETF (BND) is the most direct rival: a similar index, comparable costs and broad diversification across government, mortgage and corporate bonds.
- BND: almost identical profile, with a slightly different index methodology.
- BNDX: covers international bonds outside the U.S. (currency-hedged) — a good complement to AGG.
- Short-duration SHY or long-duration TLT: for deliberately steering duration, with lower or higher rate risk than the broad AGG mandate.
AGG stands out for very low costs (0.03%) and deep liquidity.
Where can I buy AGG?
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