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ABNDX vs. BND

Last updated Feb 24, 2024

Compare and contrast key facts about American Funds The Bond Fund of America (ABNDX) and Vanguard Total Bond Market ETF (BND).

ABNDX is managed by American Funds. It was launched on May 28, 1974. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007.

Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ABNDX or BND.

Key characteristics


ABNDXBND
YTD Return-1.93%-1.58%
1Y Return2.28%3.04%
3Y Return (Ann)-3.44%-3.23%
5Y Return (Ann)0.90%0.47%
10Y Return (Ann)1.53%1.40%
Sharpe Ratio0.350.48
Daily Std Dev7.58%7.16%
Max Drawdown-17.75%-18.84%
Current Drawdown-11.62%-12.00%

Correlation

0.86
-1.001.00

The correlation between ABNDX and BND is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

ABNDX vs. BND - Performance Comparison

In the year-to-date period, ABNDX achieves a -1.93% return, which is significantly lower than BND's -1.58% return. Over the past 10 years, ABNDX has outperformed BND with an annualized return of 1.53%, while BND has yielded a comparatively lower 1.40% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.


-4.00%-2.00%0.00%2.00%4.00%6.00%SeptemberOctoberNovemberDecember2024February
3.42%
3.28%
ABNDX
BND

Compare stocks, funds, or ETFs


American Funds The Bond Fund of America

Vanguard Total Bond Market ETF

ABNDX vs. BND - Dividend Comparison

ABNDX's dividend yield for the trailing twelve months is around 3.76%, more than BND's 3.19% yield.


TTM20232022202120202019201820172016201520142013
ABNDX
American Funds The Bond Fund of America
3.76%3.57%2.71%1.62%5.03%3.66%2.38%1.84%1.55%2.01%2.13%2.38%
BND
Vanguard Total Bond Market ETF
3.19%3.09%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%2.78%

ABNDX vs. BND - Expense Ratio Comparison

ABNDX has a 0.55% expense ratio, which is higher than BND's 0.03% expense ratio.

0.55%
0.00%2.15%
0.03%
0.00%2.15%

ABNDX vs. BND - Risk-Adjusted Performance Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds The Bond Fund of America (ABNDX) and Vanguard Total Bond Market ETF (BND). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
ABNDX
American Funds The Bond Fund of America
0.35
BND
Vanguard Total Bond Market ETF
0.48

ABNDX vs. BND - Sharpe Ratio Comparison

The current ABNDX Sharpe Ratio is 0.35, which roughly equals the BND Sharpe Ratio of 0.48. The chart below compares the 12-month rolling Sharpe Ratio of ABNDX and BND.


Rolling 12-month Sharpe Ratio-0.40-0.200.000.200.400.600.80SeptemberOctoberNovemberDecember2024February
0.35
0.48
ABNDX
BND

ABNDX vs. BND - Drawdown Comparison

The maximum ABNDX drawdown since its inception was -17.75%, smaller than the maximum BND drawdown of -18.84%. The drawdown chart below compares losses from any high point along the way for ABNDX and BND


-18.00%-16.00%-14.00%-12.00%-10.00%SeptemberOctoberNovemberDecember2024February
-11.62%
-12.00%
ABNDX
BND

ABNDX vs. BND - Volatility Comparison

American Funds The Bond Fund of America (ABNDX) has a higher volatility of 2.32% compared to Vanguard Total Bond Market ETF (BND) at 2.06%. This indicates that ABNDX's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


1.40%1.60%1.80%2.00%2.20%2.40%2.60%2.80%SeptemberOctoberNovemberDecember2024February
2.32%
2.06%
ABNDX
BND