At a glance
AGZ charges 0.2% a year, above the 0.1% average of the 7 funds most like it (the 7th cheapest of 8). It has $632.7M in assets, the 8th largest of that group; it paid 3.69% of its price in distributions over the past 12 months, monthly. Over the past year it returned +0.0% with distributions reinvested, 4th of those 8 funds; over three years it returned +4.1% a year. At its worst it fell 2.2% in the 2020 crash (S&P 500: 33.7%) and 8.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 22 months after the lows. Its ten largest positions make up 46.1% of the fund, out of 109 in all.
The short version
iShares Agency Bond ETF (AGZ) is a BlackRock index fund that tracks the Bloomberg U.S. Agency Bond Index. The index holds bonds from U.S. government agencies and government-sponsored entities such as Fannie Mae, Freddie Mac and the Federal Home Loan Banks. As of August 31, 2026, its average maturity was 4.3 years. It pays income monthly. Its 0.20% expense ratio is double the 0.10% average of similar bond funds.
Price history
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AGZ 0.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| AGZ official prospectus, to Dec 31, 2025 | — | +5.94% | — | +0.93% | +2.05% | — |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | +2.44% | — |
| AGZ price data to Oct 27, 2026 | -0.4% | 0.0% | +4.1% | +1.0% | +1.8% | +2.3% |
- Over the year to Oct 27, 2026, AGZ returned 0.0%, 4th of 8 among similar funds.
- Its 5-year annualized return was +1.0% and its 10-year +1.8%.
- In the 2020 COVID crash, while stocks fell, it gained 3.1%.
- Its worst full calendar year was 2022 (-7.8%); its best was 2025 (+6.0%).
- The deepest fall in its price history was 11% (Sep 3, 2020 to Oct 20, 2022), recovered by Feb 28, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.4% | — |
| 2025 | +6.0% | +5.94% |
| 2024 | +3.1% | +3.04% |
| 2023 | +5.2% | +5.17% |
| 2022 | -7.8% | -7.82% |
| 2021 | -1.1% | -1.01% |
| 2020 | +5.8% | +5.82% |
| 2019 | +5.5% | +5.65% |
| 2018 | +1.3% | +1.33% |
| 2017 | +2.0% | +1.84% |
| 2016 | +1.0% | +1.30% |
| 2015 | +1.4% | — |
| 2014 | +3.7% | — |
| 2013 | -1.3% | — |
| 2012 | +1.6% | — |
| 2011 | +4.9% | — |
| 2010 | +3.7% | — |
| 2009 | +1.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 3.1% over that stretch · deepest drop along the way 2.2%, back to its old high 4.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 8.4% over that stretch · deepest drop along the way 8.6%, back to its old high 22.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.9383 | |
| 2025 | $4.1200 | +9.6% |
| 2024 | $3.7600 | +10.3% |
| 2023 | $3.4100 | +104.2% |
| 2022 | $1.6700 | +49.1% |
| 2021 | $1.1200 | -58.4% |
| 2020 | $2.6900 | 0.0% |
| 2019 | $2.6900 | +12.1% |
| 2018 | $2.4000 | +34.1% |
| 2017 | $1.7900 | +5.3% |
| 2016 | $1.7000 | +15.6% |
| 2015 | $1.4700 | -1.3% |
| 2014 | $1.4900 | +12.9% |
| 2013 | $1.3200 | -5.0% |
| 2012 | $1.3900 | -26.1% |
| 2011 | $1.8800 | -8.7% |
| 2010 | $2.0600 | -3.7% |
| 2009 | $2.1400 |
What's inside
As of Aug 31, 2026, the fund held 109 securities; the ten largest made up 46.15% of assets.
| Holding | Weight | |
|---|---|---|
| Federal National Mortgage Association Bonds and notes | 11.63% | |
| Federal Home Loan Bank Bonds and notes | 4.93% | |
| Federal National Mortgage Association Bonds and notes | 4.84% | |
| Federal Home Loan Bank Bonds and notes | 4.67% | |
| Federal Farm Credit Banks Bonds and notes | 4.09% | |
| Federal National Mortgage Association Bonds and notes | 4.01% | |
| Federal Home Loan Mortgage Corp. Bonds and notes | 3.06% | |
| Federal National Mortgage Association Bonds and notes | 3.06% | |
| Federal Home Loan Bank Bonds and notes | 3.05% | |
| United States of America Bonds and notes | 2.82% | |
| Federal Home Loan Bank Bonds and notes | 2.65% | |
| Federal Home Loan Mortgage Corp. Bonds and notes | 2.52% | |
| Federal National Mortgage Association Bonds and notes | 1.93% | |
| Federal National Mortgage Association Bonds and notes | 1.85% | |
| Tennessee Valley Authority Bonds and notes | 1.81% |
By country
United States 97.76%Israel 0.39%By issuer
US government-sponsored enterprises 92.4%US Treasury 3.96%Companies 1.41%Foreign governments 0.39%The bonds mature in 4.3 years on average (weighted by size), with an average coupon of 3.95%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $86.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.18%, -0.38%, +0.19%.
How it works
AGZ tracks the Bloomberg U.S. Agency Bond Index, which is the agency slice of the broader Bloomberg U.S. Aggregate Index. To qualify, a bond must be investment grade (a credit rating that signals lower default risk, as judged by Bloomberg). It must also be in U.S. dollars, pay a fixed rate, not convert into stock, and have at least $300 million outstanding. The index has three groups: debt the U.S. government guarantees directly, bonds from entities the government partly or wholly owns, and bonds from government-sponsored entities like Fannie Mae and Freddie Mac. The last two generally carry no government guarantee. The index held 299 issues as of February 28, 2026.
Each bond is weighted by its market value, so the largest issues count most. The index is updated on the last business day of each month. BlackRock doesn't buy every bond. It uses representative sampling: it holds a smaller set of bonds chosen to match the index's duration (sensitivity to interest rates), maturity, credit quality and yield. As of August 31, 2026, the fund had 111 positions and no derivatives. At least 80% of assets must be in index bonds or equivalent to-be-announced trades. The fund may lend up to one-third of its assets to other institutions.
Many bonds in the index are callable. That means the issuer can repay them early when rates fall, and the fund then has to reinvest at lower yields.
What it really costs
- AGZ charges 0.2% a year, versus an average of 0.1% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $20 in the first year and $255 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| AGZ | $20 | $64 | $113 | $255 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
AGZ holds high-quality agency bonds with an average maturity of 4.3 years, and its prices have moved little compared with stocks, though rising rates still caused real losses.
AGZ could serve as a lower-volatility bond portion of a portfolio. During the COVID crash, from February 19 to March 23, 2020, it gained 3.1%, and it recovered from a brief 2.2% dip by July 2020. Rising rates hurt more. It lost 7.8% in 2022, its worst calendar year. Its deepest drop, 11% from September 2020 to October 2022, took about 28 months to recover, until February 2025. Anyone who had to sell shares in 2022 would have locked in losses. The fund launched in November 2008, so it has no full record from the 2008 crisis. Its trailing 12-month yield was 3.69% as of October 27, 2026, paid monthly. It costs 0.20% a year, about $20 on $10,000 in the first year under the SEC's standard example, which is above the 0.10% peer average. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want agency bonds instead of corporate credit; government-sponsored issuers made up 92.4% of assets as of August 31, 2026.
- Retirees who want monthly income with modest price swings; the trailing yield was 3.69% as of October 27, 2026.
- Bond investors who want a 4.3-year average maturity, which limits rate sensitivity compared with longer funds like BND at 11.7 years.
Look elsewhere if
- Cost-focused investors: the 0.20% expense ratio ranked 7th of 8 similar funds, while Vanguard's BSV, BIV and BND charge 0.03%.
- Anyone who assumes full government backing: Fannie Mae, Freddie Mac and Federal Home Loan Bank bonds generally carry no U.S. government guarantee.
- Investors who can't tolerate long losing stretches: the fund fell 11% between 2020 and 2022 and took about 28 months to recover.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| AGZ this fund | 4.3 yrs | 0.2% | $632.7M | 0.0% | +4.1% |
| MINT PIMCO Enhanced Short Maturity Active Exchan… | 6.3 yrs | 0.35% | $16.43B | +3.9% | +4.9% |
| BSV Vanguard Short-Term Bond ETF | 2.9 yrs | 0.03% | $69.75B | +1.7% | +4.5% |
| BIV Vanguard Intermediate-Term Bond ETF | 7.5 yrs | 0.03% | $52.45B | -0.7% | +5.1% |
| PULS PGIM Ultra Short Bond ETF | 8.8 yrs | 0.15% | $18.71B | +4.1% | +5.2% |
| BNDX Vanguard Total International Bond ETF | 8.7 yrs | 0.07% | $122.53B | -0.6% | +4.1% |
| BND Vanguard Total Bond Market ETF | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
| IUSB iShares Core Total USD Bond Market ETF | 11.8 yrs | 0.06% | $43.00B | -0.3% | +5.1% |
Questions investors ask
Is AGZ backed by the U.S. government?
Mostly not directly. As of August 31, 2026, 92.4% of assets were in bonds from government-sponsored enterprises such as Fannie Mae, Freddie Mac, the Federal Home Loan Banks and Federal Farm Credit Banks. These bonds rest on each issuer's own credit and reputation, not the full faith and credit of the U.S. government, though they benefit from implied government support. About 3.96% was in U.S. Treasuries, which do carry that backing.
Does AGZ pay monthly dividends?
Yes. AGZ pays distributions monthly. Over the 12 months through October 27, 2026, it paid about $3.95 per share, a trailing yield of 3.69%. The payments come from interest on the bonds it holds, so they rise and fall with interest rates. The prospectus warns that income can drop when rates fall, for example when callable bonds are repaid early and the money is reinvested at lower yields.
What is AGZ's expense ratio?
AGZ's expense ratio is 0.20% a year, according to the prospectus filed June 18, 2026. The SEC's standard example assumes $10,000 invested with a 5% annual return. On that basis, costs come to about $20 after one year, $113 after five years and $255 after ten. That is double the 0.10% average of similar bond funds. It is also well above the 0.03% that Vanguard's BSV, BIV and BND charge, ranking AGZ 7th of 8 on cost.
AGZ vs BSV: what's the difference?
They are different kinds of funds, so neither is a direct substitute. AGZ holds mostly agency bonds and tracks the Bloomberg U.S. Agency Bond Index. Vanguard Short-Term Bond ETF (BSV) is a broader short-term bond fund. BSV costs 0.03% versus AGZ's 0.20%, and its average maturity was shorter, 2.9 years against 4.3. Over one year BSV returned 1.7% versus 0% for AGZ. Over three years it returned 4.7% a year versus 4.1% (BSV through October 30, AGZ through October 27, 2026).
How did AGZ do when interest rates rose?
It lost money. Bond prices move opposite to interest rates, so rising rates push down the value of bonds a fund already holds. AGZ returned −7.82% in 2022, its worst calendar year, including −4.05% in the first quarter alone. Its deepest drop was 11%, from September 2020 to October 2022, and it didn't recover until February 2025. Over the 10 years through December 31, 2025, it returned 2.05% a year.