What are the main differences between AGG and TLT regarding the type of bonds they hold?

AGG is an Intermediate Core Bond ETF, while TLT is a Long Government Bond ETF. This means their portfolios are built for different purposes. AGG aims to provide a broader market representation, whereas TLT's focus on long-term government bonds exposes it to interest rate risk and potential capital gains or losses based on yield changes.

How do the expense ratios of AGG and TLT compare, and what does that difference mean over time?

The expense ratio is the annual fee the fund charges. AGG's expense ratio is 0.03%, while TLT's is 0.15%. This means TLT has a higher fee, which will reduce your returns over time compared to AGG.

What does it mean when a bond ETF has a duration?

Duration is a measure of a bond's sensitivity to changes in interest rates. TLT, a long-duration fund, is highly sensitive to interest rate movements, meaning its price can fluctuate significantly with changes in yields. AGG, with an intermediate duration profile, would typically have less price volatility from interest rate changes.

Which fund offers a higher dividend yield, and how do these distributions work?

TLT has a higher dividend yield at 4.76%, compared to AGG's 4.11%. The distributions are income payments made to investors from the bonds held by the fund. These distributions are not guaranteed and can change over time based on the income generated by the fund's holdings.

How is AGG different from a typical government bond ETF?

AGG is an intermediate bond index fund tracking a broad aggregate bond market. This means its portfolio is more diversified across multiple sectors with a focus on high-quality government, corporate, and mortgage-backed securities. It offers a blend of lower risk and more stable income.

How similar are the top holdings of AGG and TLT?

Both funds are exchange-traded funds, meaning they track a specific index. According to the data, no shared top-10 holdings are listed between AGG and TLT. This means their portfolios are composed of entirely different sets of bonds, which could impact how they perform relative to each other.

How has the performance of these ETFs been affected by recent market conditions?

The performance of bond ETFs is heavily tied to prevailing interest rates and market volatility. Both funds, especially TLT which is highly sensitive to long-term rates, would have been influenced by significant shifts in yields. As rates rose, the value of older, lower-yielding bonds in their portfolios decreased, affecting their share prices.

What information is available on the funds' specific indexes?

The specific index tracked by each of these ETFs is currently not available for comparison. You might want to review the detailed fund prospectuses or official fact sheets to learn what the underlying indexes are, as this would show exactly what securities they aim to replicate.

Are these funds considered highly liquid for a beginner investor?

Both funds are highly liquid, meaning they can be bought and sold easily. AGG has a larger net asset value of $137.3 billion compared to TLT's $46.7 billion, but both figures indicate significant size and a healthy trading market. This allows for relatively easy execution of trades without major price impact.

What is the primary investing goal typically associated with AGG?

AGG is generally associated with the goal of providing stable, moderate income and preserving capital over an intermediate-term horizon. Its diversified mix of government and high-quality corporate bonds makes it a popular choice for those seeking a broad and relatively lower-risk core bond holding.

What are the key market factors that influence AGG's holdings?

AGG's holdings are influenced by the performance of various sectors of the bond market, including Treasuries, mortgage-backed securities, and investment-grade corporates. Because it is an intermediate fund, its price is generally less volatile than a long-duration bond fund during periods of changing interest rates.

What is the primary risk associated with investing in long-duration bonds?

The main risk with long-duration bonds is interest rate risk. Because these bonds have long maturities, their prices are more sensitive to changes in interest rates. If rates rise, the value of the bonds held by TLT, which focuses on long-term Treasuries, could decline significantly.

AGG vs TLT

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares AGG (iShares Core US Aggregate Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) by fees, holdings, dividends and how each fund tracks its market. AGG has a 0.03% expense ratio and $137.3 billion in net assets, while TLT has a 0.15% expense ratio and $46.7 billion in net assets. Dividend yields are 4.11% for AGG and 4.76% for TLT. Top holdings and sector weights are not available. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AGG

Metric

TLT

0.03%

Expense Ratio

0.15%

4.11%

Dividend Yield

4.76%

$137.27B

Net Assets

$46.71B

13,428

Holdings

Sep 22, 2003

Inception Date

Jul 22, 2002

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Index Tracked

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Intermediate Core Bond

Fund Category

Long Government

AGG costs about $12.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

AGG

Pros

This fund offers low costs, with an expense ratio of 0.03%.
The fund provides a yield of 4.11%, potentially offering income.
With net assets of $137.3 billion, it offers ample liquidity.

Considerations

The specific index tracked by this fund is currently not available.
Details on top holdings and sector weights are not provided.
This fund carries an intermediate bond profile with 4.11% yield.

TLT

Pros

The fund's long duration exposes to the potential capital gains from rate drops.
A higher dividend yield of 4.76% is offered, potentially providing greater income.
The fund is highly liquid, with $46.7 billion in net assets.

Considerations

The expense ratio of 0.15% is higher than many passive bond alternatives.
The specific index this fund tracks is currently unavailable.
Information on top holdings and sector weightings remains incomplete.

About AGG and TLT

AGG (AGG)

The iShares Core US Aggregate Bond ETF (AGG) is designed to track the performance of the US investment-grade bond market. As one of the largest exchange-traded funds globally, with net assets exceeding USD 137 billion, it offers investors broad exposure to a diverse range of fixed-income securities. The fund holds over 13,000 different bonds, primarily focusing on Treasury, mortgage-backed, corporate, and other high-quality debt instruments. With an ultra-low expense ratio of 0.03%, it aims to provide cost-effective access to the intermediate core bond market. Since its inception in September 2003, AGG has become a staple for many portfolios, often used to balance equity volatility. Its current dividend yield stands at 4.11%. However, potential investors should remember that bond prices are sensitive to interest rate changes, and while this fund offers diversification, its value can rise and fall.

TLT (TLT)

The iShares 20+ Year Treasury Bond ETF (TLT) offers investors exposure to U.S. government bonds with maturities of 20 years or longer. As a long-term government bond fund, it is often influenced significantly by interest rate changes and economic outlooks. When interest rates fall, bond prices generally rise, and vice versa. With a modest expense ratio of 0.15% and net assets of USD 46.71 billion, it is a widely traded vehicle for those looking to diversify beyond equities. The fund holds 49 underlying assets and has an inception date of July 2002. It currently provides a dividend yield of approximately 4.76%. Investors should note that the value of this fund can fluctuate due to changes in long-term interest rates and inflation expectations, meaning returns are not guaranteed. It suits those seeking potential income or diversification, though it carries risks related to interest rate sensitivity.

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AGG vs TLT

Fund Snapshot