BND vs. VCIT
Compare and contrast key facts about Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT).
BND and VCIT 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. VCIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5-10 Year Corp Index. It was launched on Nov 19, 2009. Both BND and VCIT 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 VCIT.
Key characteristics
BND | VCIT | |
---|---|---|
YTD Return | -0.69% | -0.26% |
1Y Return | 2.29% | 5.30% |
3Y Return (Ann) | -2.48% | -1.43% |
5Y Return (Ann) | 0.31% | 1.71% |
10Y Return (Ann) | 1.49% | 2.77% |
Sharpe Ratio | 0.36 | 0.78 |
Daily Std Dev | 6.69% | 7.02% |
Max Drawdown | -18.84% | -20.56% |
Current Drawdown | -11.20% | -8.37% |
Correlation
The correlation between BND and VCIT is 0.86, 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. VCIT - Performance Comparison
In the year-to-date period, BND achieves a -0.69% return, which is significantly lower than VCIT's -0.26% return. Over the past 10 years, BND has underperformed VCIT with an annualized return of 1.49%, while VCIT has yielded a comparatively higher 2.77% 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. VCIT - Expense Ratio Comparison
Risk-Adjusted Performance
BND vs. VCIT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). 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.
Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
---|---|---|---|---|---|
Vanguard Total Bond Market ETF | 0.36 | ||||
Vanguard Intermediate-Term Corporate Bond ETF | 0.78 |
Dividends
BND vs. VCIT - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.23%, less than VCIT's 3.89% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Vanguard Total Bond Market ETF | 3.23% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Vanguard Intermediate-Term Corporate Bond ETF | 3.89% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% | 3.34% | 4.00% |
Drawdowns
BND vs. VCIT - Drawdown Comparison
The maximum BND drawdown since its inception was -18.84%, smaller than the maximum VCIT drawdown of -20.56%. The drawdown chart below compares losses from any high point along the way for BND and VCIT
Volatility
BND vs. VCIT - Volatility Comparison
Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT) have volatilities of 1.24% and 1.22%, 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.