BND vs. SCHP
BND (Vanguard Total Bond Market ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past 10 years, BND returned 1.58%/yr vs 2.60%/yr for SCHP. A 0.78 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
BND vs. SCHP - 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 SCHP's 1.42% return. Over the past 10 years, BND has underperformed SCHP with an annualized return of 1.58%, while SCHP has yielded a comparatively higher 2.60% 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%
SCHP
- 1D
- 0.04%
- 1M
- 0.31%
- YTD
- 1.42%
- 6M
- 1.48%
- 1Y
- 4.83%
- 3Y*
- 4.14%
- 5Y*
- 1.06%
- 10Y*
- 2.60%
BND vs. SCHP - 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% |
SCHP Schwab U.S. TIPS ETF | 1.42% | 6.76% | 1.95% | 3.91% | -12.02% | 5.87% | 10.86% | 8.52% | -1.78% | 3.02% |
Correlation
The correlation between BND and SCHP is 0.84, 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 | 0.84 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.81 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010 | 0.78 |
The correlation between BND and SCHP shifts across timeframes, from 0.78 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
BND vs. SCHP — Risk / Return Rank
BND
SCHP
BND vs. SCHP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Schwab U.S. TIPS ETF (SCHP). 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 | SCHP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.25 | ||
| Sortino ratioReturn per unit of downside risk | -0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.25 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 2.45 | -0.80 |
| Martin ratioReturn relative to average drawdown | 4.81 | 7.41 | -2.60 |
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Drawdowns
BND vs. SCHP - Drawdown Comparison
The maximum BND drawdown since its inception was -18.58%, which is greater than SCHP's maximum drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for BND and SCHP.
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Drawdown Indicators
| BND | SCHP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.58% | -14.26% | -4.32% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -1.93% | -0.75% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -4.48% | -1.44% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -14.26% | -3.65% |
Max Drawdown (10Y)Largest decline over 10 years | -18.58% | -14.26% | -4.32% |
Current DrawdownCurrent decline from peak | -2.12% | -0.44% | -1.68% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -3.93% | +0.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.64% | +0.28% |
Volatility
BND vs. SCHP - Volatility Comparison
Vanguard Total Bond Market ETF (BND) has a higher volatility of 1.28% compared to Schwab U.S. TIPS ETF (SCHP) at 1.02%. This indicates that BND's price experiences larger fluctuations and is considered to be riskier than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BND | SCHP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 1.02% | +0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 2.24% | +0.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.75% | 3.30% | +0.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.03% | 6.12% | -0.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.53% | 5.59% | -0.06% |
BND vs. SCHP - Expense Ratio Comparison
Both BND and SCHP have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
BND vs. SCHP - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.96%, which matches SCHP's 3.99% 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% |
SCHP Schwab U.S. TIPS ETF | 3.99% | 4.06% | 2.99% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.26% | 1.90% | 1.38% | 0.28% |
Frequently Asked Questions
BND and SCHP have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.28%) compared to SCHP (1.02%). In terms of maximum drawdown, BND dropped -18.58% vs SCHP's -14.26%.
On 10-year performance, SCHP leads with 2.60% vs 1.58% for BND. Both ETFs have the same 0.03% expense ratio. On volatility, SCHP has been the lower-risk option at 1.02%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHP has performed better with a 2.60% return vs 1.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND and SCHP have the same expense ratio: 0.03% per year.
SCHP has the higher dividend yield at 3.99%, compared with 3.96% for BND.
BND is categorized as Total Bond Market, while SCHP is Inflation-Protected Bonds. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). They also come from different issuers: Vanguard and Charles Schwab.
SCHP currently has the higher Sharpe Ratio (1.44 vs 1.18), 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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