Bond ETFs

Dates differ by issuer and are shown in brackets, so compare the shape of each row, not the decimals. SEC yield is a standardized 30-day measure after fund expenses, not a forecast. Net assets are for the ETF share class only. Sources are the issuer pages and fact sheets named on each comparison, plus StockAnalysis for net assets (Nov 9, 2026).

The four U.S. aggregate-style funds, BND, AGG, SCHZ and IUSB, own the bulk of the investment-grade U.S. bond market. That means Treasuries, government agencies, corporate bonds and agency mortgage-backed securities. The first three follow the Bloomberg U.S. Aggregate index in one form or another, and the percentage of Treasury and agency debt ranges from 46.6% to 49.4% across them. Because the three track a similar index, their returns have been very close, and the choice usually comes down to size, issuer and platform.

IUSB takes the same core and adds the Universal index’s extra layer. About 6.2% of the fund was below investment grade on November 6, 2026, and its corporate share, 31.0%, is the highest among the U.S. funds. In the periods to September 30, 2026, IUSB’s 1-year return was -1.53% against about -1.85% for the Aggregate funds. The extra layer also brings more credit risk, which matters in a recession.

VGIT is the narrow option. It holds only Treasuries with three to ten years left, so credit risk is absent and duration is the lowest here, at 4.8 years. The trade-off is yield: its 30-day SEC yield was 4.90% on November 5, 2026, against 5.02% for BND on the same date, and it holds no corporate bonds or mortgage securities that pay a spread over Treasuries.

BNDX is the global option. It holds bonds issued outside the United States and hedges the currency, so its returns reflect foreign interest rates and credit rather than the dollar. Its 30-day SEC yield was 3.90% on November 5, 2026, lower than the U.S. funds, and its duration of 6.4 years is the longest here. The holdings files compared on this site show no bonds in common with the other five funds.

When a broad U.S. fund fits: you want one low-cost core bond holding across the whole U.S. investment-grade market. When IUSB fits: you accept some high-yield exposure in exchange for a wider net. When VGIT fits: you want government credit only, with moderate rate risk. When BNDX fits: you want a separate source of bond exposure outside the United States. These are descriptions of what the funds hold, not recommendations.

Duration estimates how far a bond fund’s price moves when yields change. It is the best single number for comparing the six funds here. A fund with a duration of 5.7 years falls about 5.7% if yields rise one percentage point, and rises about 5.7% if they fall one point, before counting the interest it earns.

Estimate only: price change is roughly minus duration times the change in yield. It ignores interest income, convexity and spread changes. Durations are from the issuer pages dated in the table above.

The 2022 calendar year shows what that looks like in practice. NAV total returns that year were -13.12% for BND, -13.06% for AGG, -13.09% for SCHZ, -13.01% for IUSB, -12.87% for BNDX and -10.67% for VGIT, in the issuer figures captured. VGIT lost the least, which fits its shorter duration and lack of corporate or mortgage holdings. The broad funds lost nearly the same amount, because they carry nearly the same duration.

Duration is also the reason that bond ETFs can look dull in one year and painful in the next. When yields rise, prices fall at once while higher income arrives slowly. A holding period at least as long as the fund’s duration gives the higher income time to offset the price drop. Use the bond prices and interest rates guide for the mechanics.

Three yield numbers appear on fund pages, and they measure different things. The 30-day SEC yield is a standardized figure after expenses, and it is the fairest way to compare funds. Yield to maturity is the average return if every bond were held to maturity at current prices. The trailing 12-month yield adds up what a fund actually paid and divides it by the price, so it reflects the past.

SEC yield: issuer pages and fact sheets, dates as shown. Trailing yield: StockAnalysis, Nov 9, 2026. The dates differ across issuers, and market yields can move between them.

The SEC yields range from 3.90% for BNDX to 5.21% for IUSB in the figures above, and the gap between the three plain Aggregate funds is only 0.04 points. Yield to maturity runs from 4.65% for VGIT to 5.60% for BND. VGIT sits lowest because Treasuries pay less than corporate and mortgage bonds, and BNDX sits low because hedging currency back to the dollar has a cost.

Trailing yield tells a different story for BNDX. Its trailing yield of 4.64% is above its SEC yield because it includes an unusually large distribution paid in December 2025. A trailing figure that looks higher than the SEC yield is worth checking before you rely on it. Read bond yield explained for how coupon, current yield and yield to maturity differ.

Credit quality is how likely a borrower is to repay. U.S. Treasuries sit at the top. Investment-grade corporate bonds rank below them and pay more to compensate. Bonds rated below BBB are called high yield, and they pay more again but can lose value quickly when the economy weakens.

The issuers rate their funds with different conventions, so the rating tables on each comparison page are not directly comparable. Some report Treasuries as AAA and others as “U.S. Government”, and some report cash separately. The comparison pages show each issuer’s own table with its date and a note on how to read it. Read government vs corporate bonds for how credit risk affects yield.

The bond ETFs here look similar on a fact sheet, but their holdings differ. Every comparison page matches the two funds’ holdings files bond by bond using CUSIP codes and, for international bonds, ISIN codes. The overlap figure adds up the smaller of the two weights for every shared bond.

The result splits the six funds into two groups. BND, AGG and SCHZ, the three plain U.S. aggregate funds, share between about 50% and 71% of their portfolios with one another, and IUSB overlaps 42% to 56% with each of them. VGIT shares only 17% to 21% with any of them, because it holds a small list of Treasuries that the broad funds also own among thousands of other bonds. BNDX shares none of its bonds with any fund, because it holds non-U.S. issuers.

Overlap is a floor, not a ceiling. The funds publish holdings on different dates (June 30 to November 6, 2026) and some weight, mostly mortgage securities and cash, carries no bond identifier. Each comparison page lists the ten largest bond lines for both funds, so you can see exactly which Treasury notes sit at the top.

Each page below puts two funds side by side on cost, yield, duration, sector mix, maturity, credit quality, returns, the ten largest bond lines and holdings overlap. Every figure carries its date, and the data room at the bottom of each page lists the source and grade of each number. Three of the six funds follow almost the same index, so you will see tiny gaps there, and some pairs, such as BNDX against the rest, differ in kind.

• 1. Index and scopeCheck whether the fund holds the U.S. Aggregate, the wider Universal, Treasuries only or non-U.S. bonds. That decides what it can hold.
• 2. DurationCompare duration first. These funds range from 4.8 to 6.4 years, and it sets how far prices move when rates change.
• 3. YieldUse the 30-day SEC yield, not the trailing yield, and note the date. Issuers report on different days.
• 4. CreditLook at the Treasury, corporate and mortgage shares and at any holdings below investment grade.
• 5. CostExpense ratios run from 0.03% to 0.07% here. Add the bid/ask spread and, for Canadians, currency conversion.
• 6. OverlapCompare holdings. If most of the bonds repeat what you own, a second fund adds little.
• 7. Dates and sourcesDo not rank funds on mismatched dates. Compare figures with the date beside them.

Start with how bonds work if the terms are new, and size any bond fund inside your whole allocation with asset allocation explained.

The expense ratio is the annual fee taken from the fund. On a $100,000 balance, 0.03% is $30 a year, 0.06% is $60 and 0.07% is $70. The gap is small in any one year, but it comes straight out of income. With a yield near 5%, a 0.04 point fee gap is nearly one percent of the income. Use the ETF Fee Calculator to turn the fees into dollars over your own time horizon.

Trading costs come from the bid/ask spread, the gap between what buyers pay and what sellers receive. Large funds usually trade with tight spreads, and the largest here, BND and AGG, hold $167.8 billion and $139.2 billion in the ETF share class. BNDX and IUSB also have large ETF classes, at $85.4 billion and $50.5 billion. SCHZ is the smallest of the six, at $10.8 billion. Check the live spread before you trade and prefer limit orders.

Turnover is another hidden cost. In the issuer documents, portfolio turnover was 23.0% for BNDX, 37.8% for SCHZ, 54.6% for VGIT, 62% for AGG and 65% for IUSB, each for the period the issuer states. BND’s turnover was 37.6% in its 2025 fiscal year. Bond funds trade often to keep up with index changes, and turnover is not charged as a separate fee, though it can affect tracking.

You want one core bond fund for the whole U.S. market: BND, AGG or SCHZ, which hold nearly the same market at the same fee. Start with BND vs AGG and AGG vs SCHZ.

You want a wider credit range: IUSB adds high-yield bonds. Compare it with BND vs IUSB and AGG vs IUSB.

You want to avoid credit risk: VGIT holds only Treasuries. See BND vs VGIT and IUSB vs VGIT.

You want exposure outside the United States: BNDX holds foreign bonds with hedged currency. See BND vs BNDX and BNDX vs VGIT.

You already hold stocks: bonds usually play a different role from stocks, so decide how much of the portfolio should be in bonds before choosing a fund. The build an ETF portfolio guide shows where a core bond fund sits inside an allocation.

Treating a bond fund like a savings account. A bond ETF has no maturity date and its price moves. The six funds here lost between 10.7% and 13.1% in 2022.

Buying two funds that are one bet. BND, AGG and SCHZ hold largely the same bonds, so owning all three diversifies little.

Chasing the highest yield. A higher yield usually comes from more credit risk, a longer duration or both. IUSB pays more than the plain Aggregate funds because it holds some high-yield bonds.

Comparing yields from different dates. The SEC yields here are dated from September 30 to November 6, 2026, and market yields move. Compare yields only when the dates match, or note the gap.

Ignoring duration. Two funds with the same yield can behave very differently when rates move. Compare duration before you compare returns.

U.S.-listed funds such as BND, AGG, SCHZ, IUSB, BNDX and VGIT trade in U.S. dollars. Buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost, and exchange rate moves change your return in Canadian dollars.

Interest from bond funds is generally taxed as ordinary income, and in a taxable account that can be a larger tax cost than the lower rates on qualified dividends. Foreign tax treatment can differ for a fund that holds non-U.S. bonds, such as BNDX. Account type matters, because an RRSP, a TFSA and a non-registered account are treated differently.

This is general education, not tax advice. Confirm the rules for your accounts with a qualified cross-border tax professional.

Figures come from the issuer pages, fact sheets and filings for each fund: Vanguard for BND, BNDX and VGIT, iShares for AGG and IUSB, and Schwab for SCHZ. Holdings come from SEC Form N-PORT filings and the iShares holdings files, matched by CUSIP or ISIN.

Where a number could not be found, such as maturity bands for BNDX or bid/ask spreads, the comparison pages say so and nothing is estimated. Net assets and trailing yields come from StockAnalysis and are graded as third party. The pages are educational research, not personal advice, and they do not recommend a particular fund for your situation.

Pathways, not rankings or recommendations.