AGG vs BHK: Correlation
How closely do iShares Core US Aggregate Bond ETF (AGG) and Blackrock Core Bond Trust (BHK) trade together? Their weekly returns over three years give a correlation of 0.74, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and BHK?
Over the past 3 years, AGG and BHK moved with a correlation of 0.74, which is strong. Recent behaviour matches the longer record: 0.80 over 1 year against 0.74 over 3. Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 48.4 %².
By 3-year correlation, BHK places #9 of the 34 assets tracked against AGG. Neither side won the trailing year by much: +2.3% against +4.2%. Note the risk asymmetry: BHK runs 2.3 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
AGG vs BHK: side by side
| AGG (iShares Core US Aggregate Bond ETF) | BHK (Blackrock Core Bond Trust) | |
|---|---|---|
| 1-year return | +2.3% | +4.2% |
| 5-year return | -1.1% | -15.3% |
| Volatility (ann.) | 5.3% | 12.4% |
| Beta vs S&P 500 | 0.07 | 0.28 |
| Max drawdown (3Y) | -4.8% | -16.6% |
| Market cap | – | – |
| P/E (trailing) | – | 12.9 |
| Dividend yield | 4.05% | 9.85% |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, AGG sits in the Intermediate Core Bond category at iShares, with $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | BHK |
|---|---|---|
| 2022 | -13.0% | -32.6% |
| 2023 | +5.7% | +14.3% |
| 2024 | +1.3% | +3.9% |
| 2025 | +7.2% | +0.3% |
| 2026 | +0.3% | +1.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and BHK good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AGG and BHK?
As of 2026-08-27, the correlation of weekly returns between AGG and BHK is 0.74 over 3 years, 0.80 over 1 year and 0.69 over 5 years.
Is BHK a good diversifier for AGG?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/agg-vs-bhk.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/agg-vs-bhk/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AGG correlations · BHK correlations
