BFCAX vs. BND

Last updated Jun 4, 2026

BFCAX (American Funds Corporate Bond Fund) and BND (Vanguard Total Bond Market ETF) are both funds - BFCAX is a Corporate Bonds fund managed by American Funds, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 5 years, BFCAX returned -0.20%/yr vs 0.09%/yr for BND. Their correlation of 0.92 suggests significant overlap in exposure. BFCAX charges 0.70%/yr vs 0.03%/yr for BND.

Performance

BFCAX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Corporate Bond Fund (BFCAX) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BFCAX achieves a 0.46% return, which is significantly higher than BND's 0.27% return.

BFCAX

• 1D: 0.11%
• 1M: 0.78%
• YTD: 0.46%
• 6M: 0.18%
• 1Y: 5.25%
• 3Y*: 4.31%
• 5Y*: -0.20%
• 10Y*: —

BND

• 1D: -0.19%
• 1M: 0.27%
• YTD: 0.27%
• 6M: 0.12%
• 1Y: 5.11%
• 3Y*: 3.96%
• 5Y*: 0.09%
• 10Y*: 1.58%

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

BFCAX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BFCAX American Funds Corporate Bond Fund	0.46%	6.67%	1.71%	6.85%	-16.51%	-2.15%	13.05%	13.21%	-2.50%	5.61%
BND Vanguard Total Bond Market ETF	0.27%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.55%

Correlation

The correlation between BFCAX and BND is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jan 4, 2017	0.92

The correlation between BFCAX and BND has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

Return for Risk

BFCAX vs. BND — Risk / Return Rank

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

BFCAX

BFCAX Risk / Return Rank: 19
BFCAX Sharpe Ratio Rank: 18
BFCAX Sortino Ratio Rank: 19
BFCAX Omega Ratio Rank: 17
BFCAX Calmar Ratio Rank: 22
BFCAX Martin Ratio Rank: 19

BND

BND Risk / Return Rank: 37
BND Sharpe Ratio Rank: 37
BND Sortino Ratio Rank: 39
BND Omega Ratio Rank: 35
BND Calmar Ratio Rank: 38
BND Martin Ratio Rank: 36

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.

BFCAX vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Corporate Bond Fund (BFCAX) 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.

	BFCAX	BND	Difference
Sharpe ratio: Return per unit of total volatility	1.23	1.36	-0.13
Sortino ratio: Return per unit of downside risk	1.81	2.03	-0.22
Omega ratio: Gain probability vs. loss probability	1.22	1.24	-0.02
Calmar ratio: Return relative to maximum drawdown	1.73	1.92	-0.18
Martin ratio: Return relative to average drawdown	5.10	5.80	-0.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BFCAX vs. BND - Sharpe Ratio Comparison

The current BFCAX Sharpe Ratio is 1.23, which is comparable to the BND Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of BFCAX and BND, 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

	BFCAX	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.23	1.36	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.03	0.01	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.29	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.59	-0.18

Drawdowns

BFCAX vs. BND - Drawdown Comparison

The maximum BFCAX drawdown since its inception was -23.01%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for BFCAX and BND.

Drawdown Indicators

	BFCAX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-23.01%	-18.58%	-4.43%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-2.68%	-0.43%
Max Drawdown (3Y) Largest decline over 3 years	-6.92%	-5.92%	-1.00%
Max Drawdown (5Y) Largest decline over 5 years	-22.55%	-17.91%	-4.64%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.58%	—
Current Drawdown Current decline from peak	-4.85%	-2.37%	-2.48%
Average Drawdown Average peak-to-trough decline	-6.45%	-3.06%	-3.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.05%	0.88%	+0.17%

Volatility

BFCAX vs. BND - Volatility Comparison

American Funds Corporate Bond Fund (BFCAX) has a higher volatility of 1.48% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that BFCAX'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.

Volatility by Period

	BFCAX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.48%	1.23%	+0.25%
Volatility (6M) Calculated over the trailing 6-month period	3.19%	2.66%	+0.53%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	3.78%	+0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.71%	6.02%	+0.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.99%	5.53%	+0.46%

BFCAX vs. BND - Expense Ratio Comparison

BFCAX has a 0.70% expense ratio, which is higher than BND's 0.03% expense ratio.

Dividends

BFCAX vs. BND - Dividend Comparison

BFCAX's dividend yield for the trailing twelve months is around 4.19%, more than BND's 3.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BFCAX American Funds Corporate Bond Fund	4.19%	4.20%	4.06%	2.82%	1.95%	1.50%	4.43%	3.44%	2.63%	2.68%	0.00%	0.00%
BND Vanguard Total Bond Market ETF	3.97%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%

Frequently Asked Questions

Can I hold both BFCAX and BND in my portfolio?

With a correlation of 0.92, BFCAX and BND move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, BFCAX or BND?

BFCAX has higher volatility (1.48%) compared to BND (1.23%). In terms of maximum drawdown, BFCAX dropped -23.01% vs BND's -18.58%.

Which has better risk-adjusted returns?

BND currently has the higher Sharpe Ratio (1.36 vs 1.23), 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.