BND vs AGG: Two Nearly Identical Bond ETFs — Which to Choose?
BND and AGG are the two largest total US bond market ETFs, both tracking the Bloomberg U.S. Aggregate Bond Index. BND charges 0.03% TER; AGG charges 0.03% TER. They hold nearly identical portfolios of US Treasuries, investment-grade corporate bonds, and mortgage-backed securities. The differences are truly academic.
Key Differences
- Same index (Bloomberg US Aggregate), same TER (0.03%), nearly identical duration and yield
- AGG launched in 2003, BND in 2007 — both have extensive track records
- AGG has slightly higher AUM and options liquidity
- BND benefits from Vanguard's unique fund structure for marginally better tax efficiency
- Pick whichever your broker favors — the practical difference is essentially zero
Live Comparison
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Bottom Line
These are functionally interchangeable. Pick BND if you use Vanguard, AGG if you use iShares/Fidelity. Do not overthink this decision or switch between them — the differences don't justify the tax cost of switching.
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Disclaimer: This comparison is for informational and educational purposes only. It does not constitute investment advice. Past performance does not guarantee future results. ETF data is sourced from Yahoo Finance and issuer websites. Always verify current data before making investment decisions.