Dividend comparison
AGG vs VTEB: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares Core U.S. Aggregate Bond ETF and Vanguard Tax-Exempt Bond ETF, side by side. Updated October 21, 2026.
AGG vs VTEB: key differences
The short answer, from the latest data on this page.
- Fees. Both charge about 0.03% a year, so cost is not what separates them.
- Income. AGG pays more income, yielding 4.16% over the last twelve months versus 3.54% for VTEB. That is about $62 more a year on $10,000. Both pay monthly.
- Performance. Over the last 5 years, VTEB returned -1.4% versus -4.8% for AGG, with dividends reinvested. $10,000 would have grown to $9,856 in VTEB and $9,524 in AGG.
- Risk. AGG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -17.3%, against -12.3% for VTEB.
- Diversification. AGG holds 13,433 positions and VTEB holds 2.
- Dividend growth. AGG grew its yearly payout 17.8% a year over the last 4 years, versus 16.3% for VTEB.
- Size. AGG is the larger fund with $138.4 billion in assets, against $52.4 billion for VTEB.
Bottom line: AGG fits better if you care most about more income today, faster dividend growth and broader diversification. VTEB fits better if you care most about stronger 5-year returns and smaller drawdowns.
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 | VTEB Vanguard Tax-Exempt Bond ETF |
|---|---|---|
| Dividend yield (TTM) | 4.16% | 3.54% |
| Dividend / share (TTM) | $3.97 | $1.70 |
| Payout frequency | Monthly | Monthly |
| Last dividend | $0.3341 on Oct 6, 2026 | $0.1372 on Oct 5, 2026 |
| Ex-dividend date | Oct 1, 2026 | Oct 1, 2026 |
| Dividend growth (CAGR) | 17.8% over 4 yrs | 16.3% over 4 yrs |
| Price | $95.27 | $47.97 |
| Dividend growth streak | 4 years | 4 years |
| Beta | 0.99 | 0.95 |
| Max drawdown (5Y) | -17.3% | -12.3% |
| Market cap | $138.48B | $52.43B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.03% | 0.03% |
| Assets under management | $138.40B | $52.40B |
| Number of holdings | 13433 | 2 |
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
VTEB
$29.50/mo
$354 /yr at 3.54% yield
Dividend history
Total dividends paid per share in each calendar year. AGG pays monthly; VTEB pays monthly.
| Year | AGG | VTEB |
|---|---|---|
| 2025 | $3.8850 | $1.6552 |
| 2024 | $3.6283 | $1.5736 |
| 2023 | $3.1076 | $1.4246 |
| 2022 | $2.3187 | $1.0336 |
| 2021 | $2.0204 | $0.9044 |
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 $9,856 in VTEB.
| Period | AGG | VTEB |
|---|---|---|
| 1 month | -0.72% | -0.62% |
| 3 months | -2.98% | -4.31% |
| Year to date | -4.62% | -4.61% |
| 1 year | -5.19% | -4.56% |
| 3 years | 12.36% | 8.38% |
| 5 years | -4.76% | -1.44% |
- AGG
- VTEB
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
- VTEB
Quick verdict
AGG fits better if you care most about more income today, faster dividend growth and broader diversification. VTEB fits better if you care most about stronger 5-year returns and smaller drawdowns. 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 VTEB fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is AGG or VTEB better for dividend income?
It depends on your goals. AGG currently yields 4.16% Trailing Twelve Months (TTM) while VTEB yields 3.54%. 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 VTEB?
iShares Core U.S. Aggregate Bond ETF (AGG) is an ETF listed on AMEX. Vanguard Tax-Exempt Bond ETF (VTEB) 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 VTEB?
They cost about the same: AGG charges 0.03% a year and VTEB charges 0.03%.
Which has performed better, AGG or VTEB?
Over the last 5 years, VTEB has the higher total return with dividends reinvested: AGG returned -4.8% and VTEB returned -1.4%. Past performance does not predict future returns.
Which is riskier, AGG or VTEB?
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 VTEB as much as 12.3%. Their betas are 0.99 and 0.95.
How often do AGG and VTEB pay dividends?
Both pay monthly. The most recent payments were $0.3341 for AGG and $0.1372 for VTEB.
How much income does $10,000 in AGG vs VTEB generate?
At current TTM yields, $10,000 in AGG would generate roughly $34.69 per month ($416 annually). The same amount in VTEB would produce about $29.50 per month ($354 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both AGG and VTEB?
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 VTEB with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how AGG and VTEB 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.