BND vs. VTIP
Compare and contrast key facts about Vanguard Total Bond Market ETF (BND) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP).
BND and VTIP 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. VTIP is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Oct 12, 2012. Both BND and VTIP 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 VTIP.
Key characteristics
| BND | VTIP | |
|---|---|---|
| YTD Return | -3.03% | 0.73% |
| 1Y Return | -0.29% | 3.80% |
| 3Y Return (Ann) | -3.51% | 2.21% |
| 5Y Return (Ann) | -0.07% | 3.22% |
| 10Y Return (Ann) | 1.20% | 1.98% |
| Sharpe Ratio | -0.06 | 1.45 |
| Daily Std Dev | 6.80% | 2.58% |
| Max Drawdown | -18.84% | -6.27% |
| Current Drawdown | -13.30% | -0.25% |
Correlation
The correlation between BND and VTIP is 0.53, 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. VTIP - Performance Comparison
In the year-to-date period, BND achieves a -3.03% return, which is significantly lower than VTIP's 0.73% return. Over the past 10 years, BND has underperformed VTIP with an annualized return of 1.20%, while VTIP has yielded a comparatively higher 1.98% 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. VTIP - Expense Ratio Comparison
Risk-Adjusted Performance
BND vs. VTIP - 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 Inflation-Protected Securities ETF (VTIP). 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. VTIP - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.36%, which matches VTIP's 3.33% 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% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.33% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
Drawdowns
BND vs. VTIP - Drawdown Comparison
The maximum BND drawdown since its inception was -18.84%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for BND and VTIP. For additional features, visit the drawdowns tool.
Volatility
BND vs. VTIP - Volatility Comparison
Vanguard Total Bond Market ETF (BND) has a higher volatility of 1.88% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.59%. This indicates that BND's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.