BND vs. IEI
BND (Vanguard Total Bond Market ETF) and IEI (iShares 3-7 Year Treasury Bond ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index. Both are passively managed. Over the past 10 years, BND returned 1.58%/yr vs 1.24%/yr for IEI. Their correlation of 0.87 suggests significant overlap in exposure. BND charges 0.03%/yr vs 0.15%/yr for IEI.
Performance
BND vs. IEI - Performance Comparison
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Returns By Period
In the year-to-date period, BND achieves a 0.52% return, which is significantly higher than IEI's -0.30% return. Over the past 10 years, BND has outperformed IEI with an annualized return of 1.58%, while IEI has yielded a comparatively lower 1.24% annualized return.
BND
- 1D
- -0.12%
- 1M
- 1.03%
- YTD
- 0.52%
- 6M
- 0.91%
- 1Y
- 4.77%
- 3Y*
- 4.17%
- 5Y*
- 0.03%
- 10Y*
- 1.58%
IEI
- 1D
- -0.12%
- 1M
- 0.54%
- YTD
- -0.30%
- 6M
- -0.00%
- 1Y
- 3.16%
- 3Y*
- 3.77%
- 5Y*
- 0.21%
- 10Y*
- 1.24%
BND vs. IEI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 0.52% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
IEI iShares 3-7 Year Treasury Bond ETF | -0.30% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
Correlation
The correlation between BND and IEI is 0.93, 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 | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.87 |
The correlation between BND and IEI has been stable across timeframes, ranging from 0.87 to 0.94 - a consistent structural relationship.
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Return for Risk
BND vs. IEI — Risk / Return Rank
BND
IEI
BND vs. IEI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and iShares 3-7 Year Treasury Bond ETF (IEI). 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 | IEI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.19 | ||
| Sortino ratioReturn per unit of downside risk | +0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.17 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 1.19 | +0.46 |
| Martin ratioReturn relative to average drawdown | 4.81 | 3.35 | +1.45 |
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Drawdowns
BND vs. IEI - Drawdown Comparison
The maximum BND drawdown since its inception was -18.58%, which is greater than IEI's maximum drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for BND and IEI.
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Drawdown Indicators
| BND | IEI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.58% | -14.60% | -3.98% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -2.50% | -0.18% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -3.66% | -2.26% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -13.88% | -4.03% |
Max Drawdown (10Y)Largest decline over 10 years | -18.58% | -14.60% | -3.98% |
Current DrawdownCurrent decline from peak | -2.12% | -1.74% | -0.38% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -2.67% | -0.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.89% | +0.03% |
Volatility
BND vs. IEI - Volatility Comparison
Vanguard Total Bond Market ETF (BND) has a higher volatility of 1.28% compared to iShares 3-7 Year Treasury Bond ETF (IEI) at 0.98%. This indicates that BND's price experiences larger fluctuations and is considered to be riskier than IEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BND | IEI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 0.98% | +0.30% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 2.18% | +0.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.75% | 3.00% | +0.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.03% | 4.78% | +1.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.53% | 3.93% | +1.60% |
BND vs. IEI - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than IEI's 0.15% 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. IEI - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.96%, more than IEI's 3.64% 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% |
IEI iShares 3-7 Year Treasury Bond ETF | 3.64% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
Frequently Asked Questions
With a correlation of 0.93, BND and IEI 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.
BND has higher volatility (1.28%) compared to IEI (0.98%). In terms of maximum drawdown, BND dropped -18.58% vs IEI's -14.60%.
On 10-year performance, BND leads with 1.58% vs 1.24% for IEI. On fees, BND is cheaper at 0.03% per year. On volatility, IEI has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BND has performed better with a 1.58% return vs 1.24%. 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 0.15% for IEI.
BND has the higher dividend yield at 3.96%, compared with 3.64% for IEI.
BND is categorized as Total Bond Market, while IEI is Government Bonds. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while IEI tracks ICE U.S. Treasury 3-7 Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for BND and 0.15% for IEI.
BND currently has the higher Sharpe Ratio (1.18 vs 1.00), 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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