AGG vs VTI: iShares Core U.S. Aggregate Bond ETF vs Vanguard Total Stock Market ETF Comparison
Compare AGG (iShares Core U.S. Aggregate Bond ETF) and VTI (Vanguard Total Stock Market ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Dividend yield: AGG 3.12% vs VTI 1.33%
- 2Category: AGG is Bonds & Commodities, VTI is Index Tracking
- 3Holdings: AGG 11,245 vs VTI 4,026
- 4Issuer: AGG (BlackRock(iShares)) vs VTI (Vanguard)
Conclusion
AGG has an overall advantage with higher dividend yield (3.12% vs 1.33%). However, VTI also offers Perfect diversification, making it worth considering depending on your portfolio goals.
| Category | AGG | VTI |
|---|---|---|
| Fund Name | iShares Core U.S. Aggregate Bond ETF | Vanguard Total Stock Market ETF |
| Current Price | ... | ... |
| Category | Bonds & Commodities | Index Tracking |
| Expense Ratio | 0.03% | 0.03% |
| Dividend Yield | 3.12% | 1.33% |
| Holdings | 11245 | 4026 |
AGG Top Holdings
- 1. U.S. Treasury Bonds
- 2. MBS
- 3. Corporate Bonds
- 4. Government Agency Bonds
VTI Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Alphabet
AGG Features
- •Bond investing
- •Stability
- •Low volatility
- •Diversification benefit
VTI Features
- •Covers entire market
- •Includes small-cap stocks
- •Extremely diversified
- •Low cost
Pros & Cons
AGG
Advantages
- ✓ Portfolio stabilization
- ✓ Negative correlation with equities
- ✓ Stable returns
Disadvantages
- ⚠ Rising interest rate risk
- ⚠ Low returns
- ⚠ Inflation risk
VTI
Advantages
- ✓ Perfect diversification
- ✓ Captures small-cap growth
- ✓ Very low expense ratio
Disadvantages
- ⚠ Total market risk
- ⚠ No individual stock selection
- ⚠ Average returns
Investment Strategy
Best For: AGG
Stocks:bonds = 60:40 or age-adjusted ratio
Best For: VTI
Single-ETF portfolio possible; recommended to combine with international ETFs
Detailed Analysis
AGG (iShares Core U.S. Aggregate Bond ETF) and VTI (Vanguard Total Stock Market ETF) They belong to different categories — Bonds & Commodities and Index Tracking — representing distinct investment areas. AGG: iShares Core U.S. Aggregate Bond ETF (AGG) is an exchange-traded fund that provides investors with exposure to bonds, gold, and other commodities. It carries an expense ratio of 0.03%. The fund offers a dividend yield of approximately 3.12%. The portfolio holds 11245 securities. With an expense ratio of 0.03% and dividend yield of 3.12%, its top holdings include U.S. Treasury Bonds, MBS, Corporate Bonds. Key features include Bond investing, Stability, with Portfolio stabilization being a major advantage. VTI: Vanguard Total Stock Market ETF (VTI) is an exchange-traded fund that provides investors with exposure to broad market indices. It carries an expense ratio of 0.03%. The fund offers a dividend yield of approximately 1.33%. The portfolio holds 4026 securities. With an expense ratio of 0.03% and dividend yield of 1.33%, top holdings include Apple, Microsoft, Amazon. Notable features are Covers entire market, Includes small-cap stocks, with Perfect diversification as a core strength.
Investment Recommendation
AGG is suitable for Stocks:bonds = 60:40 or age-adjusted ratio, while VTI is suitable for Single-ETF portfolio possible; recommended to combine with international ETFs. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both AGG and VTI are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
AGG vs VTI Investment Guide
Both AGG and VTI are popular US ETFs, but they differ in investment strategy and portfolio role. AGG has an expense ratio of 0.03%, while VTI charges 0.03%, Both ETFs share the same cost structure. In terms of dividend yield, AGG offers 3.12% while VTI offers 1.33%, making AGG the better choice for income investors.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.