BND vs. VGSH
Compare and contrast key facts about Vanguard Total Bond Market ETF (BND) and Vanguard Short-Term Treasury ETF (VGSH).
BND and VGSH 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. VGSH is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 1-3 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. Both BND and VGSH 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 VGSH.
Key characteristics
| BND | VGSH | |
|---|---|---|
| YTD Return | -2.94% | -0.07% |
| 1Y Return | -1.48% | 2.06% |
| 3Y Return (Ann) | -3.59% | -0.13% |
| 5Y Return (Ann) | -0.16% | 1.01% |
| 10Y Return (Ann) | 1.19% | 0.96% |
| Sharpe Ratio | -0.12 | 1.19 |
| Daily Std Dev | 6.78% | 2.09% |
| Max Drawdown | -18.84% | -5.70% |
| Current Drawdown | -13.22% | -0.56% |
Correlation
The correlation between BND and VGSH is 0.65, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
BND vs. VGSH - Performance Comparison
In the year-to-date period, BND achieves a -2.94% return, which is significantly lower than VGSH's -0.07% return. Over the past 10 years, BND has outperformed VGSH with an annualized return of 1.19%, while VGSH has yielded a comparatively lower 0.96% 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. VGSH - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than VGSH'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. VGSH - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Vanguard Short-Term Treasury ETF (VGSH). 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. VGSH - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.36%, less than VGSH's 3.70% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.36% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
VGSH Vanguard Short-Term Treasury ETF | 3.70% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.82% | 0.71% | 0.46% | 0.34% |
Drawdowns
BND vs. VGSH - Drawdown Comparison
The maximum BND drawdown since its inception was -18.84%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for BND and VGSH. For additional features, visit the drawdowns tool.
Volatility
BND vs. VGSH - Volatility Comparison
Vanguard Total Bond Market ETF (BND) has a higher volatility of 1.84% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.58%. This indicates that BND's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.