AVGB vs. BNDW

Last updated Jun 3, 2026

AVGB (Avantis Credit ETF) and BNDW (Vanguard Total World Bond ETF) are both Global Bonds funds. AVGB is actively managed, while BNDW is passively managed. Over the past year, AVGB returned 4.82% vs 3.74% for BNDW. Their correlation of 0.87 suggests significant overlap in exposure. AVGB charges 0.19%/yr vs 0.05%/yr for BNDW.

Performance

AVGB vs. BNDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Credit ETF (AVGB) and Vanguard Total World Bond ETF (BNDW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVGB achieves a 0.87% return, which is significantly higher than BNDW's 0.68% return.

AVGB

• 1D: 0.03%
• 1M: 0.47%
• YTD: 0.87%
• 6M: 1.12%
• 1Y: 4.82%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BNDW

• 1D: 0.10%
• 1M: 0.44%
• YTD: 0.68%
• 6M: 0.54%
• 1Y: 3.74%
• 3Y*: 4.08%
• 5Y*: 0.33%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AVGB vs. BNDW - Yearly Performance Comparison

	2026 (YTD)	2025
AVGB Avantis Credit ETF	0.87%	4.89%
BNDW Vanguard Total World Bond ETF	0.68%	3.38%

Correlation

The correlation between AVGB and BNDW is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 21, 2025	0.87

The correlation between AVGB and BNDW has been stable across timeframes, ranging from 0.87 to 0.88 - a consistent structural relationship.

Return for Risk

AVGB vs. BNDW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AVGB

AVGB Risk / Return Rank: 54
AVGB Sharpe Ratio Rank: 56
AVGB Sortino Ratio Rank: 61
AVGB Omega Ratio Rank: 59
AVGB Calmar Ratio Rank: 44
AVGB Martin Ratio Rank: 49

BNDW

BNDW Risk / Return Rank: 29
BNDW Sharpe Ratio Rank: 31
BNDW Sortino Ratio Rank: 30
BNDW Omega Ratio Rank: 29
BNDW Calmar Ratio Rank: 27
BNDW Martin Ratio Rank: 27

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AVGB vs. BNDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Credit ETF (AVGB) and Vanguard Total World Bond ETF (BNDW). 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.

	AVGB	BNDW	Difference
Sharpe ratio Return per unit of total volatility	1.96	1.12	+0.84
Sortino ratio Return per unit of downside risk	2.91	1.60	+1.31
Omega ratio Gain probability vs. loss probability	1.37	1.19	+0.17
Calmar ratio Return relative to maximum drawdown	2.24	1.34	+0.90
Martin ratio Return relative to average drawdown	8.36	3.82	+4.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AVGB vs. BNDW - Sharpe Ratio Comparison

The current AVGB Sharpe Ratio is 1.96, which is higher than the BNDW Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of AVGB and BNDW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AVGB	BNDW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.96	1.12	+0.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.09	0.38	+1.71

Drawdowns

AVGB vs. BNDW - Drawdown Comparison

The maximum AVGB drawdown since its inception was -2.12%, smaller than the maximum BNDW drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for AVGB and BNDW.

Drawdown Indicators

	AVGB	BNDW	Difference
Max Drawdown Largest peak-to-trough decline	-2.12%	-17.22%	+15.10%
Max Drawdown (1Y) Largest decline over 1 year	-2.12%	-2.70%	+0.58%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.27%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-16.93%	—
Current Drawdown Current decline from peak	-0.34%	-1.27%	+0.93%
Average Drawdown Average peak-to-trough decline	-0.33%	-4.98%	+4.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.57%	0.95%	-0.38%

Volatility

AVGB vs. BNDW - Volatility Comparison

The current volatility for Avantis Credit ETF (AVGB) is 0.87%, while Vanguard Total World Bond ETF (BNDW) has a volatility of 1.31%. This indicates that AVGB experiences smaller price fluctuations and is considered to be less risky than BNDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVGB	BNDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.87%	1.31%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	1.92%	2.63%	-0.71%
Volatility (1Y) Calculated over the trailing 1-year period	2.48%	3.35%	-0.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.49%	5.21%	-2.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.49%	4.90%	-2.41%

AVGB vs. BNDW - Expense Ratio Comparison

AVGB has a 0.19% expense ratio, which is higher than BNDW's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

AVGB vs. BNDW - Dividend Comparison

AVGB's dividend yield for the trailing twelve months is around 3.46%, less than BNDW's 4.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
AVGB Avantis Credit ETF	3.46%	3.49%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BNDW Vanguard Total World Bond ETF	4.20%	4.12%	3.90%	3.73%	2.02%	2.58%	1.56%	3.05%	1.66%

Frequently Asked Questions

Can I hold both AVGB and BNDW in my portfolio?

AVGB and BNDW have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVGB or BNDW?

BNDW has higher volatility (1.31%) compared to AVGB (0.87%). In terms of maximum drawdown, AVGB dropped -2.12% vs BNDW's -17.22%.

Which ETF is better, AVGB or BNDW?

On 1-year performance, AVGB leads with 4.82% vs 3.74% for BNDW. On fees, BNDW is cheaper at 0.05% per year. On volatility, AVGB has been the lower-risk option at 0.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVGB or BNDW?

Over the 1-year period, AVGB has performed better with a 4.82% return vs 3.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVGB or BNDW?

BNDW is cheaper with a 0.05% expense ratio, compared with 0.19% for AVGB.

Which ETF pays a higher dividend yield, AVGB or BNDW?

BNDW has the higher dividend yield at 4.20%, compared with 3.46% for AVGB.

What is the main difference between AVGB and BNDW?

They also come from different issuers: Avantis and Vanguard. Their fees differ too: 0.19% for AVGB and 0.05% for BNDW.

Which has better risk-adjusted returns?

AVGB currently has the higher Sharpe Ratio (1.96 vs 1.12), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.