At a glance
EAGG charges 0.1% a year, above the 0.08% average of the 7 funds most like it (the 6th cheapest of 8). It has $5.09B in assets, the 4th largest of that group; it paid 4.15% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.2% with distributions reinvested, 5th of those 8 funds; over three years it returned +5.1% a year. At its worst it fell 7.0% in the 2020 crash (S&P 500: 33.7%) and 14.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 37 months after the lows. Its ten largest positions make up 4.1% of the fund, out of 5,153 in all.
The short version
BlackRock's iShares ESG Aware US Aggregate Bond ETF (EAGG) holds thousands of US investment-grade bonds, including Treasuries, mortgage-backed securities and corporate bonds. It tracks the Bloomberg MSCI US Aggregate ESG Focus Index. The fund aims to behave like the broad US bond market while shifting its corporate holdings toward issuers with stronger environmental, social and governance (ESG) ratings. That approach costs more: 0.10% a year, compared with 0.03% for AGG and SCHZ.
Price history
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EAGG -1.2% 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 | |
|---|---|---|---|---|---|---|
| EAGG official prospectus, to Dec 31, 2025 | — | +7.13% | — | -0.48% | — | +2.17% |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | — | +2.58% |
| EAGG price data to Oct 27, 2026 | -0.9% | -1.2% | +5.1% | -0.4% | — | +1.8% |
- Over the year to Oct 27, 2026, EAGG returned -1.2%, 5th of 8 among similar funds.
- Its 5-year annualized return was -0.4%.
- In the 2020 COVID crash it fell 7% and regained its old high 1.1 months after the low.
- Its worst full calendar year was 2022 (-13.6%); its best was 2019 (+8.7%).
- The deepest fall in its price history was 18.7% (Aug 4, 2020 to Oct 20, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.9% | — |
| 2025 | +7.2% | +7.13% |
| 2024 | +1.1% | +1.23% |
| 2023 | +5.6% | +5.51% |
| 2022 | -13.6% | -13.17% |
| 2021 | -1.3% | -1.73% |
| 2020 | +7.4% | +7.41% |
| 2019 | +8.7% | +8.71% |
| 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 | Lost 0.4% over that stretch · deepest drop along the way 7%, back to its old high 1.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.5% over that stretch · deepest drop along the way 14.6%, back to its old high 36.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4300 | |
| 2025 | $1.8900 | +3.3% |
| 2024 | $1.8300 | +18.8% |
| 2023 | $1.5400 | +58.8% |
| 2022 | $0.9700 | +61.7% |
| 2021 | $0.6000 | -40.6% |
| 2020 | $1.0100 | -40.6% |
| 2019 | $1.7000 |
What's inside
As of Aug 31, 2026, the fund held 5,153 securities; the ten largest made up 4.14% of assets, and 6.33% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| UMBS, TBA Mortgage-backed securities | 0.65% | |
| United States Treasury Bonds and notes | 0.43% | |
| United States Treasury Bonds and notes | 0.41% | |
| UMBS, TBA Mortgage-backed securities | 0.40% | |
| United States Treasury Bonds and notes | 0.39% | |
| Freddie Mac Mortgage-backed securities | 0.38% | |
| United States Treasury Bonds and notes | 0.37% | |
| UMBS, TBA Mortgage-backed securities | 0.37% | |
| United States Treasury Bonds and notes | 0.37% | |
| United States Treasury Bonds and notes | 0.37% | |
| United States Treasury Bonds and notes | 0.37% | |
| United States Treasury Bonds and notes | 0.36% | |
| United States Treasury Bonds and notes | 0.36% | |
| United States Treasury Bonds and notes | 0.35% | |
| United States Treasury Bonds and notes | 0.35% |
By country
United States 90.13%XX 1.91%Canada 1.8%United Kingdom 1.15%Japan 0.51%By issuer
US Treasury 45.41%Companies 24.91%US government-sponsored enterprises 18.34%US government agencies 5.55%Foreign governments 2.91%The bonds mature in 12.7 years on average (weighted by size), with an average coupon of 3.84%.
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 $390.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.26%, -1.31%, +0.37%.
How it works
EAGG is an index fund, so it tries to match the Bloomberg MSCI US Aggregate ESG Focus Index instead of picking bonds. Bloomberg builds that index from the Bloomberg US Aggregate Bond Index, the standard benchmark for US investment-grade bonds. Investment-grade bonds are those judged to have a lower risk of default. The index copies the parent index's US Treasury, mortgage-backed and other asset-backed bonds at their original weights, with no ESG changes. Agency mortgage bonds don't get an MSCI ESG rating at all.
The ESG screening applies only to corporate and government-related bonds. Bloomberg removes issuers tied to tobacco, controversial weapons, civilian firearms, thermal coal and oil sands. It also removes issuers in very severe controversies and those without an MSCI rating. A computer model then gives more weight to issuers with higher MSCI ESG ratings while keeping risk and return close to the parent index. At each quarterly review, the index's ESG score must be at least 10% better than the parent's.
The index updates on the last business day of each month. The prospectus reports portfolio turnover of 94%. As of August 31, 2026, the fund held 5,153 bonds, and the 10 largest made up just 4.14% of assets. The largest was a Uniform Mortgage-Backed Security "TBA" position at 0.65%. A TBA (to-be-announced) trade is a forward purchase of mortgage bonds. Next came several US Treasury notes, the biggest at 0.43%. The average maturity was 12.7 years.
What it really costs
- EAGG charges 0.1% a year, versus an average of 0.08% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $10 in the first year and $128 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EAGG | $10 | $32 | $56 | $128 |
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
It covers the broad US investment-grade bond market, with about 45% in Treasuries, so it can anchor the bond side of a portfolio.
EAGG could make up the bond core of a portfolio. As of October 27, 2026, its trailing 12-month yield was 4.15%, and it pays income monthly. Rising interest rates are its main risk. The fund lost 13.17% in 2022. From January to September 2022 it fell 14.6%, and it took about 37 months, until October 2025, to get back to its earlier high. Measured from its August 2020 high, its deepest drop was 18.7%, and it had not fully recovered as of October 27, 2026. In the 2020 COVID crash it fell 7% and recovered in about a month. It launched in 2018, so it has no record from 2008. Anyone who sold shares for income in 2022 would have sold at a loss.
The fund costs 0.10% a year. That works out to $10 in the first year and $128 over 10 years on $10,000, using the SEC's standard example. Past results don't predict future ones, 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 broad US investment-grade bond exposure, about 45% in Treasuries, with an ESG tilt applied only to corporate bonds.
- Retirees who value monthly income. The trailing 12-month yield was 4.15% as of October 27, 2026.
- Investors looking for a steadier holding: three-year volatility of about 5%, and a 7% COVID-crash drop that recovered in about a month.
Look elsewhere if
- Investors focused on cost. EAGG charges 0.10% a year, while AGG, SCHZ, SPAB and BBAG charge 0.03% for very similar bond portfolios.
- Investors who want protection from rising rates. With a 12.7-year average maturity, EAGG lost 13.17% in 2022.
- Investors who want strict ESG screens on the whole fund. Treasuries and mortgage bonds, most of the portfolio, are held at standard index weights.
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 |
|---|---|---|---|---|---|
| EAGG this fund | 12.7 yrs | 0.1% | $5.09B | -1.2% | +5.1% |
| SPAB SPDR Portfolio Aggregate Bond ETF | 12.7 yrs | 0.03% | $9.63B | -1.2% | +5.2% |
| GCOR Goldman Sachs Access U.S. Aggregate Bond ETF | 12.7 yrs | 0.08% | $833.9M | -1.4% | +5.1% |
| SCHZ Schwab U.S. Aggregate Bond ETF | 12.5 yrs | 0.03% | $10.60B | -1.1% | +5.2% |
| BBAG JPMorgan BetaBuilders U.S. Aggregate Bond E… | 12.5 yrs | 0.03% | $1.03B | -0.8% | +5.3% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| AGZD WisdomTree Interest Rate Hedged U.S. Aggreg… | 12.6 yrs | 0.23% | $144.5M | +4.3% | +5.8% |
| NUBD Nuveen ESG U.S. Aggregate Bond ETF | 12.3 yrs | 0.16% | $463.2M | -1.3% | +5.1% |
Questions investors ask
Is EAGG good for retirement?
EAGG can serve as a core bond holding. It owns more than 5,000 investment-grade bonds and pays income monthly. It is not free of risk. It lost 13.17% in 2022, when interest rates rose. As of December 31, 2025, its five-year average annual return was -0.48%. It also costs 0.10% a year, more than several similar aggregate bond ETFs that charge 0.03%.
What's the difference between EAGG and AGG?
Both are iShares funds that cover the broad US investment-grade bond market. EAGG adds an ESG tilt to its corporate and government-related bonds. AGG does not. AGG costs 0.03% a year, compared with EAGG's 0.10%. AGG is also much larger, with about $138.3 billion in net assets as of August 31, 2026, against about $5.1 billion for EAGG. Their three-year annualized returns through late October 2026 were close: 5.2% for AGG and 5.1% for EAGG.
Does EAGG pay monthly dividends?
Yes. EAGG pays distributions every month, and they come mostly from the interest on its bonds. Over the 12 months to October 27, 2026, it paid $1.91 per share, a trailing yield of 4.15%. The payments can change. If interest rates fall, the fund may have to reinvest maturing, called or prepaid bonds at lower yields, which would reduce its income.
How much did EAGG lose in 2022?
EAGG lost 13.17% in 2022, according to its prospectus. That was its worst calendar year. Its worst quarter was the first quarter of 2022, at -5.86%. Bond prices fall when interest rates rise, and rates rose sharply that year. Its slide from January to September 2022 was 14.6%, and it took about 37 months, until October 2025, to fully recover.
What does EAGG's ESG screen exclude?
From its corporate and government-related bonds, EAGG's index removes issuers tied to tobacco, controversial weapons, civilian firearms, thermal coal and oil sands. It also drops issuers in very severe controversies and those without an MSCI rating. The screen does not cover Treasuries or mortgage-backed bonds. Together, those made up most of the fund as of August 31, 2026. At each quarterly review, the index's ESG score must be at least 10% better than its parent index's.