AGG — iShares Core US Aggregate Bond ETF
iShares (BlackRock) · Expense Ratio: 0.03% · US Bonds · 3bp below the US Bonds category average of 0.06%
Key Facts
| Ticker | AGG |
| Full Name | iShares Core US Aggregate Bond ETF |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.03% |
| Category | US Bonds |
| Assets Under Management | $120B |
| Inception Year | 2003 (23 years ago) |
| Number of Holdings | 13,000 |
| Dividend Yield | ~3.4% (high) |
| Top Holdings | US Treasuries, MBS, Corp Bonds |
What Is AGG?
AGG, managed by iShares (BlackRock), launched in 2003, is one of the largest ETFs in the world with exceptional liquidity in the US Bonds category. US bond market ETF providing fixed income exposure to government and corporate bonds. With $120B in assets under management, it is among the most liquid and widely traded ETFs available.
AGG in a FIRE Portfolio
Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors.
Bonds stabilize your portfolio during stock market crashes. In a FIRE portfolio, a common allocation is 97% stocks / 3% bonds (the "97 minus your age" rule). Bond funds like AGG provide the fixed-income portion of this allocation.
Cost Analysis: How AGG's 0.03% Fee Affects Your FIRE Timeline
At 0.03%, AGG is in the ultra-low-cost tier. On a $100,000 investment, you pay just $30/year in fees. Over 30 years, the fee drag is approximately less than 1% of your total returns — essentially negligible for FIRE planning. This is about as close to "free" as ETFs get.
Dividend Income Potential
With a high dividend yield of approximately 3.4%, here's what AGG could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $3,400/year | $283/month |
| $250,000 | $8,500/year | $708/month |
| $500,000 | $17,000/year | $1,417/month |
| $1,000,000 | $34,000/year | $2,833/month |
Frequently Asked Questions About AGG
What is the expense ratio for AGG?
AGG has an expense ratio of 0.03%. This is ultra-low-cost — on a $100K portfolio, annual fees are $30. 3bp below the us bonds category average of 0.06%.
Is AGG good for a FIRE portfolio?
Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors. Its 0.03% expense ratio is ultra-low-cost for the US Bonds category.
How does the 0.03% fee affect long-term returns?
At 0.03%, the fee impact is minimal — less than $50/year on a $100K portfolio. Over a 30-year FIRE timeline, the cumulative fee drag is under 1% of total returns, making AGG an extremely efficient choice.
Similar ETFs in US Bonds
- BND — Vanguard Total Bond Market ETF (0.03% · Portfolio Hedge)
- BNDX — Vanguard Total International Bond ETF (0.07% · Portfolio Hedge)
- BIV — Vanguard Intermediate-Term Bond ETF (0.04% · Portfolio Hedge)
- BSV — Vanguard Short-Term Bond ETF (0.04% · Portfolio Hedge)
- VCIT — Vanguard Intermediate-Term Corporate Bond ETF (0.04% · Portfolio Hedge)
- VCSH — Vanguard Short-Term Corporate Bond ETF (0.04% · Portfolio Hedge)
- MUB — iShares National Muni Bond ETF (0.05% · Portfolio Hedge)
- VTEB — Vanguard Tax-Exempt Bond ETF (0.05% · Portfolio Hedge)
- SHY — iShares 1-3 Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- IEI — iShares 3-7 Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- TLT — iShares 20+ Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- GOVT — iShares US Treasury Bond ETF (0.05% · Portfolio Hedge)