Dividend comparison
AGG vs HYG: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares Core U.S. Aggregate Bond ETF and iShares iBoxx $ High Yield Corporate Bond ETF, side by side. Updated October 21, 2026.
AGG vs HYG: key differences
The short answer, from the latest data on this page.
- Fees. AGG is cheaper at 0.03% a year versus 0.49% for HYG. On $10,000 that is $46 a year less in fees.
- Income. HYG pays more income, yielding 6.12% over the last twelve months versus 4.16% for AGG. That is about $195 more a year on $10,000. Both pay monthly.
- Performance. Over the last 5 years, HYG returned 11.2% versus -4.8% for AGG, with dividends reinvested. $10,000 would have grown to $11,120 in HYG and $9,524 in AGG.
- Risk. Their worst declines over the last 5 years were similar: -17.3% for AGG and -15.8% for HYG from peak to trough.
- Diversification. AGG holds 13,433 positions and HYG holds 1,334.
- Dividend growth. AGG grew its yearly payout 17.8% a year over the last 4 years, versus 7.1% for HYG.
- Size. AGG is the larger fund with $138.4 billion in assets, against $16.8 billion for HYG.
Bottom line: AGG fits better if you care most about lower fees, faster dividend growth and broader diversification. HYG fits better if you care most about more income today and stronger 5-year returns.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | AGG iShares Core U.S. Aggregate Bond ETF | HYG iShares iBoxx $ High Yield Corporate Bond ETF |
|---|---|---|
| Dividend yield (TTM) | 4.16% | 6.12% |
| Dividend / share (TTM) | $3.97 | $4.70 |
| Payout frequency | Monthly | Monthly |
| Last dividend | $0.3341 on Oct 6, 2026 | $0.3416 on Oct 6, 2026 |
| Ex-dividend date | Oct 1, 2026 | Oct 1, 2026 |
| Dividend growth (CAGR) | 17.8% over 4 yrs | 7.1% over 4 yrs |
| Price | $95.27 | $76.83 |
| Dividend growth streak | 4 years | — |
| Beta | 0.99 | 0.67 |
| Max drawdown (5Y) | -17.3% | -15.8% |
| Market cap | $138.48B | $17.19B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.03% | 0.49% |
| Assets under management | $138.40B | $16.80B |
| Number of holdings | 13433 | 1334 |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
AGG
$34.69/mo
$416 /yr at 4.16% yield
HYG
$50.97/mo
$612 /yr at 6.12% yield
Dividend history
Total dividends paid per share in each calendar year. AGG pays monthly; HYG pays monthly.
| Year | AGG | HYG |
|---|---|---|
| 2025 | $3.8850 | $4.6075 |
| 2024 | $3.6283 | $4.7241 |
| 2023 | $3.1076 | $4.4446 |
| 2022 | $2.3187 | $3.9032 |
| 2021 | $2.0204 | $3.4982 |
Strategy: Bonds
Funds that hold government, corporate or municipal debt and pay out the interest as monthly income. The two numbers that explain most of their behavior are duration, which sets how much the price moves when interest rates change, and credit quality, which sets how much extra yield is earned for default risk. Long-term Treasury funds move a lot with rates, while short-term funds behave closer to cash.
Bond prices fall when interest rates rise, and long-duration funds can lose as much as stocks in a fast rate-hiking cycle.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $9,524 in AGG and $11,120 in HYG.
| Period | AGG | HYG |
|---|---|---|
| 1 month | -0.72% | -2.16% |
| 3 months | -2.98% | -3.54% |
| Year to date | -4.62% | -4.71% |
| 1 year | -5.19% | -4.08% |
| 3 years | 12.36% | 21.43% |
| 5 years | -4.76% | 11.20% |
- AGG
- HYG
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- AGG
- HYG
Quick verdict
AGG fits better if you care most about lower fees, faster dividend growth and broader diversification. HYG fits better if you care most about more income today and stronger 5-year returns. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how AGG vs HYG fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is AGG or HYG better for dividend income?
It depends on your goals. AGG currently yields 4.16% Trailing Twelve Months (TTM) while HYG yields 6.12%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between AGG and HYG?
iShares Core U.S. Aggregate Bond ETF (AGG) is an ETF listed on AMEX. iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, AGG or HYG?
AGG has the lower expense ratio. AGG charges 0.03% a year and HYG charges 0.49%, a difference of $46 a year on a $10,000 investment.
Which has performed better, AGG or HYG?
Over the last 5 years, HYG has the higher total return with dividends reinvested: AGG returned -4.8% and HYG returned 11.2%. Past performance does not predict future returns.
Which is riskier, AGG or HYG?
Measured by the worst peak-to-trough decline over the last five years, AGG has been riskier: AGG fell as much as 17.3% and HYG as much as 15.8%. Their betas are 0.99 and 0.67.
How often do AGG and HYG pay dividends?
Both pay monthly. The most recent payments were $0.3341 for AGG and $0.3416 for HYG.
How much income does $10,000 in AGG vs HYG generate?
At current TTM yields, $10,000 in AGG would generate roughly $34.69 per month ($416 annually). The same amount in HYG would produce about $50.97 per month ($612 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both AGG and HYG?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare AGG vs HYG with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how AGG and HYG fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.