BND vs. BNDW
BND (Vanguard Total Bond Market ETF) and BNDW (Vanguard Total World Bond ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index. Both are passively managed. Over the past 5 years, BND returned 0.03%/yr vs 0.18%/yr for BNDW. Their correlation of 0.94 suggests significant overlap in exposure. BND charges 0.03%/yr vs 0.05%/yr for BNDW.
Performance
BND vs. BNDW - Performance Comparison
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Returns By Period
In the year-to-date period, BND achieves a 0.52% return, which is significantly lower than BNDW's 0.76% return.
BND
- 1D
- -0.12%
- 1M
- 0.42%
- YTD
- 0.52%
- 6M
- 0.91%
- 1Y
- 4.40%
- 3Y*
- 4.17%
- 5Y*
- 0.03%
- 10Y*
- 1.58%
BNDW
- 1D
- 0.03%
- 1M
- 0.68%
- YTD
- 0.76%
- 6M
- 1.04%
- 1Y
- 3.18%
- 3Y*
- 4.25%
- 5Y*
- 0.18%
- 10Y*
- —
BND vs. BNDW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 0.52% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | 1.22% |
BNDW Vanguard Total World Bond ETF | 0.76% | 5.02% | 2.42% | 7.18% | -12.88% | -2.10% | 6.22% | 8.37% | 1.27% |
Correlation
The correlation between BND and BNDW is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Sep 6, 2018 | 0.94 |
The correlation between BND and BNDW has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.
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Return for Risk
BND vs. BNDW — Risk / Return Rank
BND
BNDW
BND vs. BNDW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BND | BNDW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.23 | ||
| Sortino ratioReturn per unit of downside risk | +0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.17 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 1.18 | +0.47 |
| Martin ratioReturn relative to average drawdown | 4.81 | 3.24 | +1.57 |
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Drawdowns
BND vs. BNDW - Drawdown Comparison
The maximum BND drawdown since its inception was -18.58%, which is greater than BNDW's maximum drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for BND and BNDW.
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Drawdown Indicators
| BND | BNDW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.58% | -17.22% | -1.36% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -2.70% | +0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -4.27% | -1.65% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -16.93% | -0.98% |
Max Drawdown (10Y)Largest decline over 10 years | -18.58% | — | — |
Current DrawdownCurrent decline from peak | -2.12% | -1.20% | -0.92% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -4.96% | +1.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.99% | -0.07% |
Volatility
BND vs. BNDW - Volatility Comparison
Vanguard Total Bond Market ETF (BND) and Vanguard Total World Bond ETF (BNDW) have volatilities of 1.28% and 1.29%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BND | BNDW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 1.29% | -0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 2.69% | +0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.75% | 3.37% | +0.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.03% | 5.21% | +0.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.53% | 4.90% | +0.63% |
BND vs. BNDW - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than BNDW's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
BND vs. BNDW - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.96%, less than BNDW's 4.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
BNDW Vanguard Total World Bond ETF | 4.20% | 4.12% | 3.90% | 3.73% | 2.02% | 2.58% | 1.56% | 3.05% | 1.66% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.95, BND and BNDW 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.
BNDW has higher volatility (1.29%) compared to BND (1.28%). In terms of maximum drawdown, BND dropped -18.58% vs BNDW's -17.22%.
On 5-year performance, BNDW leads with 0.18% vs 0.03% for BND. On fees, BND is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, BNDW has performed better with a 0.18% return vs 0.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.05% for BNDW.
BNDW has the higher dividend yield at 4.20%, compared with 3.96% for BND.
BND is categorized as Total Bond Market, while BNDW is Global Bonds. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while BNDW tracks Bloomberg Global Aggregate Float Adjusted Composite Index. Their fees differ too: 0.03% for BND and 0.05% for BNDW.
BND currently has the higher Sharpe Ratio (1.18 vs 0.95), 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.
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