AGG vs BND: Correlation
iShares Core US Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND) show a very strong relationship: their 3-year correlation of weekly returns is 1.00.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and BND?
Across a 3-year window, the weekly returns of AGG and BND correlate at 1.00, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (1.00) sits close to the 3-year figure. Stretching to 5 years gives 1.00, with an annualized covariance of 27.6 %².
In AGG's tracked universe of 34 assets, BND sits right near the top at #1. Twelve-month performance is nearly a tie, at +2.3% for AGG and +2.3% for BND. The link looks structural: the rolling one-year correlation barely moved, holding between 1.00 and 1.00.
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 BND: side by side
| AGG (iShares Core US Aggregate Bond ETF) | BND (Vanguard Total Bond Market ETF) | |
|---|---|---|
| 1-year return | +2.3% | +2.3% |
| 5-year return | -1.1% | -1.3% |
| Volatility (ann.) | 5.3% | 5.2% |
| Beta vs S&P 500 | 0.07 | 0.06 |
| Max drawdown (3Y) | -4.8% | -4.7% |
| Dividend yield | 4.05% | – |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | ETF · Bonds |
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 | BND |
|---|---|---|
| 2022 | -13.0% | -13.1% |
| 2023 | +5.7% | +5.7% |
| 2024 | +1.3% | +1.4% |
| 2025 | +7.2% | +7.1% |
| 2026 | +0.3% | +0.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and BND good diversifiers for each other?
No. With a correlation of 1.00, AGG and BND move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between AGG and BND?
The AGG/BND correlation stands at 1.00 on a 3-year window (1 year: 1.00, 5 years: 1.00), computed from weekly returns as of 2026-08-27.
Is BND a good diversifier for AGG?
No. With a correlation of 1.00, AGG and BND move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 1.00 mean?
A reading of 1.00 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/agg-vs-bnd.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/agg-vs-bnd/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AGG correlations · BND correlations
