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BND vs. VEU
Performance
Return for Risk
Drawdowns
Volatility
Dividends

BND vs. VEU

Last updated Jun 4, 2026

BND (Vanguard Total Bond Market ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, BND returned 1.58%/yr vs 9.94%/yr for VEU. At a correlation of -0.09, they often move in opposite directions. BND charges 0.03%/yr vs 0.04%/yr for VEU.

Performance

BND vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Bond Market ETF (BND) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, BND achieves a 0.27% return, which is significantly lower than VEU's 14.60% return. Over the past 10 years, BND has underperformed VEU with an annualized return of 1.58%, while VEU has yielded a comparatively higher 9.94% annualized return.

BND

1D
-0.19%
1M
0.27%
YTD
0.27%
6M
0.12%
1Y
5.11%
3Y*
3.96%
5Y*
0.09%
10Y*
1.58%

VEU

1D
-0.98%
1M
5.07%
YTD
14.60%
6M
17.34%
1Y
32.37%
3Y*
19.62%
5Y*
8.67%
10Y*
9.94%
*Multi-year figures are annualized to reflect compound growth (CAGR)

BND vs. VEU - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
BND
Vanguard Total Bond Market ETF		0.27%7.08%1.38%5.65%-13.11%-1.86%7.71%8.84%-0.12%3.57%
VEU
Vanguard FTSE All-World ex-US ETF		14.60%32.35%5.56%15.84%-15.58%8.27%11.10%21.83%-14.18%27.40%

Correlation

The correlation between BND and VEU is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.41

Correlation (3Y)
Calculated over the trailing 3-year period

0.33

Correlation (5Y)
Calculated over the trailing 5-year period

0.23

Correlation (10Y)
Calculated over the trailing 10-year period

0.10

Correlation (All Time)
Calculated using the full available price history since Apr 11, 2007

-0.09

The correlation between BND and VEU shifts across timeframes, from -0.09 (all time) to 0.41 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Total Bond Market ETF

Vanguard FTSE All-World ex-US ETF

Often compared with BND:
BND vs. BNDXBND vs. FXNAXBND vs. AGGBND vs. FBNDBND vs. BNDWBND vs. TLTBND vs. VBTLX
Often compared with VEU:
VEU vs. VXUSVEU vs. VEAVEU vs. VOOVEU vs. VGKVEU vs. SPYVEU vs. ACWXVEU vs. VTI

Return for Risk

BND vs. VEU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
BND
BND Risk / Return Rank: 3737
Overall Rank
BND Sharpe Ratio Rank: 3737
Sharpe Ratio Rank
BND Sortino Ratio Rank: 3939
Sortino Ratio Rank
BND Omega Ratio Rank: 3535
Omega Ratio Rank
BND Calmar Ratio Rank: 3838
Calmar Ratio Rank
BND Martin Ratio Rank: 3636
Martin Ratio Rank
VEU
VEU Risk / Return Rank: 6060
Overall Rank
VEU Sharpe Ratio Rank: 6262
Sharpe Ratio Rank
VEU Sortino Ratio Rank: 6161
Sortino Ratio Rank
VEU Omega Ratio Rank: 6262
Omega Ratio Rank
VEU Calmar Ratio Rank: 5656
Calmar Ratio Rank
VEU Martin Ratio Rank: 6161
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BND vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Vanguard FTSE All-World ex-US ETF (VEU). 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.

BNDVEUDifference
Sharpe ratioReturn per unit of total volatility
1.36
2.13

-0.77

Sortino ratioReturn per unit of downside risk
2.03
2.94

-0.91

Omega ratioGain probability vs. loss probability

1.24

1.39

-0.15

Calmar ratioReturn relative to maximum drawdown

1.92

2.85

-0.93

Martin ratioReturn relative to average drawdown

5.80

11.06

-5.26

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BND vs. VEU - Sharpe Ratio Comparison

The current BND Sharpe Ratio is 1.36, which is lower than the VEU Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of BND and VEU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

BNDVEUDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.36

2.13

-0.77

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.01

0.54

-0.53

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.29

0.58

-0.29

Sharpe Ratio (All Time)

Calculated using the full available price history

0.59

0.25

+0.33

Drawdowns

BND vs. VEU - Drawdown Comparison

The maximum BND drawdown since its inception was -18.58%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for BND and VEU.

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Drawdown Indicators

BNDVEUDifference

Max Drawdown

Largest peak-to-trough decline

-18.58%

-61.52%

+42.94%

Max Drawdown (1Y)

Largest decline over 1 year

-2.68%

-11.43%

+8.75%

Max Drawdown (3Y)

Largest decline over 3 years

-5.92%

-13.69%

+7.77%

Max Drawdown (5Y)

Largest decline over 5 years

-17.91%

-29.31%

+11.40%

Max Drawdown (10Y)

Largest decline over 10 years

-18.58%

-34.98%

+16.40%

Current Drawdown

Current decline from peak

-2.37%

-0.98%

-1.39%

Average Drawdown

Average peak-to-trough decline

-3.06%

-13.13%

+10.07%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.88%

2.93%

-2.05%

Volatility

BND vs. VEU - Volatility Comparison

The current volatility for Vanguard Total Bond Market ETF (BND) is 1.23%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 5.59%. This indicates that BND experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

BNDVEUDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.23%

5.59%

-4.36%

Volatility (6M)

Calculated over the trailing 6-month period

2.66%

13.04%

-10.38%

Volatility (1Y)

Calculated over the trailing 1-year period

3.78%

15.29%

-11.51%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.02%

16.07%

-10.05%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.53%

17.21%

-11.68%

BND vs. VEU - Expense Ratio Comparison

BND has a 0.03% expense ratio, which is lower than VEU'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%.

Dividends

BND vs. VEU - Dividend Comparison

BND's dividend yield for the trailing twelve months is around 3.97%, more than VEU's 2.61% yield.

PositionTTM20252024202320222021202020192018201720162015
BND
Vanguard Total Bond Market ETF		3.97%3.86%3.67%3.09%2.60%2.12%2.38%2.72%2.81%2.54%2.51%2.57%
VEU
Vanguard FTSE All-World ex-US ETF		2.61%3.09%3.24%3.32%3.12%3.08%2.00%3.10%3.27%2.66%2.96%2.95%

Frequently Asked Questions

BND and VEU have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VEU has higher volatility (5.59%) compared to BND (1.23%). In terms of maximum drawdown, BND dropped -18.58% vs VEU's -61.52%.

On 10-year performance, VEU leads with 9.94% vs 1.58% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VEU has performed better with a 9.94% return vs 1.58%. 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 0.04% for VEU.

BND has the higher dividend yield at 3.97%, compared with 2.61% for VEU.

BND is categorized as Total Bond Market, while VEU is Foreign Large Cap Equities. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while VEU tracks FTSE All-World ex US Index. Their fees differ too: 0.03% for BND and 0.04% for VEU.

VEU currently has the higher Sharpe Ratio (2.13 vs 1.36), 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.

Portfolio Optimizer

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