BND vs. SCHZ
Compare and contrast key facts about Vanguard Total Bond Market ETF (BND) and Schwab U.S. Aggregate Bond ETF (SCHZ).
BND and SCHZ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. SCHZ is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Aggregate. It was launched on Jul 14, 2011. Both BND and SCHZ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BND or SCHZ.
Key characteristics
| BND | SCHZ | |
|---|---|---|
| YTD Return | 1.55% | 3.44% |
| 1Y Return | 6.48% | 8.83% |
| 3Y Return (Ann) | -2.22% | -0.52% |
| 5Y Return (Ann) | -0.27% | 1.48% |
| 10Y Return (Ann) | 1.39% | 2.85% |
| Sharpe Ratio | 1.25 | 1.58 |
| Sortino Ratio | 1.83 | 2.36 |
| Omega Ratio | 1.22 | 1.28 |
| Calmar Ratio | 0.48 | 0.84 |
| Martin Ratio | 4.20 | 6.22 |
| Ulcer Index | 1.70% | 1.52% |
| Daily Std Dev | 5.68% | 5.98% |
| Max Drawdown | -18.84% | -16.93% |
| Current Drawdown | -9.21% | -3.46% |
Correlation
The correlation between BND and SCHZ is 0.92, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
BND vs. SCHZ - Performance Comparison
In the year-to-date period, BND achieves a 1.55% return, which is significantly lower than SCHZ's 3.44% return. Over the past 10 years, BND has underperformed SCHZ with an annualized return of 1.39%, while SCHZ has yielded a comparatively higher 2.85% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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BND vs. SCHZ - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than SCHZ's 0.04% 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%.
Risk-Adjusted Performance
BND vs. SCHZ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Schwab U.S. Aggregate Bond ETF (SCHZ). 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.
Dividends
BND vs. SCHZ - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.58%, less than SCHZ's 5.85% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.58% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
SCHZ Schwab U.S. Aggregate Bond ETF | 5.85% | 3.85% | 3.73% | 3.61% | 4.05% | 4.67% | 4.44% | 3.81% | 3.37% | 2.81% | 3.06% | 3.06% |
Drawdowns
BND vs. SCHZ - Drawdown Comparison
The maximum BND drawdown since its inception was -18.84%, which is greater than SCHZ's maximum drawdown of -16.93%. Use the drawdown chart below to compare losses from any high point for BND and SCHZ. For additional features, visit the drawdowns tool.
Volatility
BND vs. SCHZ - Volatility Comparison
Vanguard Total Bond Market ETF (BND) and Schwab U.S. Aggregate Bond ETF (SCHZ) have volatilities of 1.64% and 1.59%, 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.