BND vs. VGIT
BND (Vanguard Total Bond Market ETF) and VGIT (Vanguard Intermediate-Term Treasury ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index. Both are passively managed. Over the past 10 years, BND returned 1.59%/yr vs 1.21%/yr for VGIT. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.
Performance
BND vs. VGIT - Performance Comparison
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Returns By Period
In the year-to-date period, BND achieves a 0.75% return, which is significantly higher than VGIT's -0.02% return. Over the past 10 years, BND has outperformed VGIT with an annualized return of 1.59%, while VGIT has yielded a comparatively lower 1.21% annualized return.
BND
- 1D
- 0.15%
- 1M
- 1.26%
- YTD
- 0.75%
- 6M
- 0.83%
- 1Y
- 5.22%
- 3Y*
- 4.09%
- 5Y*
- 0.12%
- 10Y*
- 1.59%
VGIT
- 1D
- 0.17%
- 1M
- 0.94%
- YTD
- -0.02%
- 6M
- 0.04%
- 1Y
- 3.85%
- 3Y*
- 3.71%
- 5Y*
- 0.19%
- 10Y*
- 1.21%
BND vs. VGIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 0.75% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
VGIT Vanguard Intermediate-Term Treasury ETF | -0.02% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
Correlation
The correlation between BND and VGIT is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.89 |
The correlation between BND and VGIT has been stable across timeframes, ranging from 0.89 to 0.96 - a consistent structural relationship.
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Return for Risk
BND vs. VGIT — Risk / Return Rank
BND
VGIT
BND vs. VGIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Treasury ETF (VGIT). 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 | VGIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.34 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.20 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.96 | 1.37 | +0.59 |
| Martin ratioReturn relative to average drawdown | 5.67 | 3.80 | +1.87 |
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Drawdowns
BND vs. VGIT - Drawdown Comparison
The maximum BND drawdown since its inception was -18.58%, which is greater than VGIT's maximum drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for BND and VGIT.
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Drawdown Indicators
| BND | VGIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.58% | -16.05% | -2.53% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -2.83% | +0.15% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -4.34% | -1.58% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -15.02% | -2.89% |
Max Drawdown (10Y)Largest decline over 10 years | -18.58% | -16.05% | -2.53% |
Current DrawdownCurrent decline from peak | -1.90% | -1.96% | +0.06% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -3.52% | +0.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 1.02% | -0.10% |
Volatility
BND vs. VGIT - Volatility Comparison
Vanguard Total Bond Market ETF (BND) has a higher volatility of 1.12% compared to Vanguard Intermediate-Term Treasury ETF (VGIT) at 1.02%. This indicates that BND's price experiences larger fluctuations and is considered to be riskier than VGIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BND | VGIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.12% | 1.02% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 2.73% | 2.40% | +0.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.71% | 3.33% | +0.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.03% | 5.38% | +0.65% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.53% | 4.50% | +1.03% |
BND vs. VGIT - Expense Ratio Comparison
Both BND and VGIT 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. VGIT - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.95%, more than VGIT's 3.85% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.95% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.85% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
With a correlation of 0.95, BND and VGIT 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 (1.12%) compared to VGIT (1.02%). In terms of maximum drawdown, BND dropped -18.58% vs VGIT's -16.05%.
On 10-year performance, BND leads with 1.59% vs 1.21% for VGIT. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. 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 1.59% return vs 1.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND and VGIT have the same expense ratio: 0.03% per year.
BND has the higher dividend yield at 3.95%, compared with 3.85% for VGIT.
BND is categorized as Total Bond Market, while VGIT is Government Bonds. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index.
BND currently has the higher Sharpe Ratio (1.41 vs 1.16), 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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