AGG vs. IWM – Which is Best For You?
Discover my comparison of AGG vs. IWM to determine which is best for you. I have compiled all of the information about these funds across the internet in this article to make your research easier.
AGG vs. IWM Key Characteristics
You can use the table below to compare the key characteristics of these funds:
| Metrics | AGG | IWM |
|---|---|---|
| 1-Year Annual Return | 5.58% | 16.80% |
| 5-Year Annual Return | 1.05% | 9.87% |
| Expense Ratio | 0.03% | 0.19% |
| Dividend Yield | 3.15% | 1.35% |
| Number of Holdings | Various Bonds | 1975 |
You can compare these funds in real time using the TradingView chart below. Ensure to click the “ADJ” button at the bottom right of the chart to adjust the data for dividends! While TradingView doesn’t support mutual funds, you can change them to the ETF equivalent to see the returns in real-time.
Overview of AGG
AGG, the iShares Core U.S. Aggregate Bond ETF, is an exchange-traded fund managed by BlackRock. The primary objective of AGG is to provide broad exposure to the U.S. investment-grade bond market. This ETF is typically used by investors looking to diversify their portfolio with fixed-income assets, reduce volatility, or seek income.
Overview of IWM
The iShares Russell 2000 ETF, trading under the ticker symbol IWM, is an exchange-traded fund managed by BlackRock. It is designed to track the performance of the Russell 2000 Index, which consists of the smallest 2000 stocks in the Russell 3000 Index, representing the small-cap segment of the U.S. equity market. Managed by BlackRock, IWM is known for its liquidity and is widely used by both institutional and individual investors.
Performance Comparison of AGG vs. IWM
The total return performance including dividends is crucial to consider when analyzing different investment funds.
As of 1/15/2024, AGG has a one year annualized return of 5.58%, while IWM has a five year annualized return of 16.80%.
AGG vs. IWM Dividend Yield
Both AGG and IWM pay dividends to their shareholders from the earnings of their underlying stocks. The dividend yield is a measure of how much a company pays in dividends relative to its share price.
As of 1/15/2024 the dividend yield of AGG is 3.15%, while the dividend yield of IWM is 1.35%.
AGG vs. IWM Expense Ratios
The expense ratio is a measure of how much an ETF charges its investors for managing the fund. It is expressed as a percentage of the fund’s assets per year.
The expense ratio is one of the most important factors to consider when choosing an ETF because it directly affects your returns over time. The lower the expense ratio, the more money you get to keep from your investment.
As of 1/15/2024 AGG has an expense ratio of 0.03%, while IWM has an expense ratio of 0.19%.
AGG vs. IWM Holdings
A fund’s holdings are the basket of individual securities that it owns and tracks. It is crucial for investors to analyze a fund’s holdings because they are effectively what you are investing in by purchasing the fund.
As of 1/15/2024 AGG holds Various Bonds securities, while IWM holds 1975.
Mutual Funds vs. ETFs
When comparing investment funds, you may be confused about the difference between an ETF and a mutual fund. Keep in mind, an index fund is a specific type of mutual fund. ETFs are tradeable during the stock market hours, while mutual funds only update once per day.
Mutual funds are pooled investment vehicles that are managed by a fund company or an investment advisor. They issue and redeem shares directly to investors at the end of each trading day based on their net asset value (NAV). Investors can buy and sell mutual fund shares through the fund company or a broker.
ETFs are also pooled investment vehicles that are managed by a fund company or an investment advisor. However, they trade like stocks on an exchange throughout the trading day at market prices that may differ from their NAV. Investors can buy and sell ETF shares through a broker.
Some of the advantages and disadvantages of mutual funds vs ETFs are:
- Mutual funds may offer more convenience and flexibility for investors who want to invest a fixed amount of money or set up automatic investments or withdrawals.
- Mutual funds may require a larger minimum investment.
- ETFs may incur bid-ask spreads and premiums or discounts to their NAV, which can affect their trading efficiency and performance.
- Mutual funds may be less tax-efficient than ETFs, as they may distribute more capital gains to their shareholders due to their redemption mechanism.
- ETFs may be more tax-efficient than mutual funds, as they may avoid realizing capital gains through their creation and redemption mechanism.
AGG vs. IWM – Bottom Line
Ultimately, both AGG and IWM are solid investment choices. The choice between the two ultimately depends on the exposure you want and the amount of risk you are willing to take.
Hopefully, the information in this article helps you decide which is better for your portfolio. To continue your research, check out our other fund comparison articles as well!
Comparing ETFs With TradingView
When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.
You can simply sign up for a free TradingView account and type the stock ticker you want to compare.
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- Advanced Charts
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Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.
Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!
TradingView is the best way to compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget at the top of this page. Alternatively, sign up for a free TradingView account and use the main website for a better experience. You can also watch the video below to learn how to compare funds with TradingView:
