BND vs. VTWAX

Last updated Jun 13, 2026

BND (Vanguard Total Bond Market ETF) and VTWAX (Vanguard Total World Stock Index Fund Admiral Shares) are both funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while VTWAX is a Global Equities fund tracking the FTSE Global All Cap Index. Both are passively managed. Over the past 5 years, BND returned 0.03%/yr vs 10.51%/yr for VTWAX. At a 0.12 correlation, their price movements are largely independent. BND charges 0.03%/yr vs 0.09%/yr for VTWAX.

Performance

BND vs. VTWAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Bond Market ETF (BND) and Vanguard Total World Stock Index Fund Admiral Shares (VTWAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BND achieves a 0.52% return, which is significantly lower than VTWAX's 10.38% return.

BND

• 1D: -0.12%
• 1M: 0.42%
• YTD: 0.52%
• 6M: 0.91%
• 1Y: 4.40%
• 3Y*: 4.17%
• 5Y*: 0.03%
• 10Y*: 1.58%

VTWAX

• 1D: 2.34%
• 1M: -0.02%
• YTD: 10.38%
• 6M: 11.15%
• 1Y: 25.06%
• 3Y*: 19.75%
• 5Y*: 10.51%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BND vs. VTWAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
BND Vanguard Total Bond Market ETF	0.52%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	7.84%
VTWAX Vanguard Total World Stock Index Fund Admiral Shares	10.38%	22.43%	16.43%	21.85%	-18.02%	18.17%	16.67%	17.53%

Correlation

The correlation between BND and VTWAX is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (All Time) Calculated using the full available price history since Feb 7, 2019	0.12

Over the past year, BND and VTWAX have become more correlated (0.37) than their long-term average of 0.12, meaning their price movements have been converging.

Return for Risk

BND vs. VTWAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BND

BND Risk / Return Rank: 37
BND Sharpe Ratio Rank: 38
BND Sortino Ratio Rank: 38
BND Omega Ratio Rank: 35
BND Calmar Ratio Rank: 37
BND Martin Ratio Rank: 35

VTWAX

VTWAX Risk / Return Rank: 72
VTWAX Sharpe Ratio Rank: 72
VTWAX Sortino Ratio Rank: 68
VTWAX Omega Ratio Rank: 69
VTWAX Calmar Ratio Rank: 71
VTWAX Martin Ratio Rank: 79

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. VTWAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Vanguard Total World Stock Index Fund Admiral Shares (VTWAX). 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	VTWAX	Difference
Sharpe ratio: Return per unit of total volatility	1.18	1.97	-0.78
Sortino ratio: Return per unit of downside risk	1.77	2.69	-0.91
Omega ratio: Gain probability vs. loss probability	1.21	1.36	-0.15
Calmar ratio: Return relative to maximum drawdown	1.65	2.66	-1.01
Martin ratio: Return relative to average drawdown	4.81	11.61	-6.80

BND vs. VTWAX - Sharpe Ratio Comparison

The current BND Sharpe Ratio is 1.18, which is lower than the VTWAX Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of BND and VTWAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BND vs. VTWAX - Drawdown Comparison

The maximum BND drawdown since its inception was -18.58%, smaller than the maximum VTWAX drawdown of -34.20%. Use the drawdown chart below to compare losses from any high point for BND and VTWAX.

Drawdown Indicators

	BND	VTWAX	Difference
Max Drawdown Largest peak-to-trough decline	-18.58%	-34.20%	+15.62%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-9.64%	+6.96%
Max Drawdown (3Y) Largest decline over 3 years	-5.92%	-16.43%	+10.51%
Max Drawdown (5Y) Largest decline over 5 years	-17.91%	-26.40%	+8.49%
Max Drawdown (10Y) Largest decline over 10 years	-18.58%	—	—
Current Drawdown Current decline from peak	-2.12%	-2.45%	+0.33%
Average Drawdown Average peak-to-trough decline	-3.06%	-5.29%	+2.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	2.21%	-1.29%

Volatility

BND vs. VTWAX - Volatility Comparison

The current volatility for Vanguard Total Bond Market ETF (BND) is 1.28%, while Vanguard Total World Stock Index Fund Admiral Shares (VTWAX) has a volatility of 5.19%. This indicates that BND experiences smaller price fluctuations and is considered to be less risky than VTWAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BND	VTWAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.28%	5.19%	-3.91%
Volatility (6M) Calculated over the trailing 6-month period	2.74%	10.71%	-7.97%
Volatility (1Y) Calculated over the trailing 1-year period	3.75%	13.07%	-9.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.03%	15.82%	-9.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.53%	18.23%	-12.70%

BND vs. VTWAX - Expense Ratio Comparison

BND has a 0.03% expense ratio, which is lower than VTWAX's 0.09% 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. VTWAX - Dividend Comparison

BND's dividend yield for the trailing twelve months is around 3.96%, more than VTWAX's 1.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.96%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VTWAX Vanguard Total World Stock Index Fund Admiral Shares	1.59%	1.80%	1.92%	2.06%	2.17%	1.79%	1.64%	2.28%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BND and VTWAX in my portfolio?

BND and VTWAX have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BND or VTWAX?

VTWAX has higher volatility (5.19%) compared to BND (1.28%). In terms of maximum drawdown, BND dropped -18.58% vs VTWAX's -34.20%.

Which has better risk-adjusted returns?

VTWAX currently has the higher Sharpe Ratio (1.97 vs 1.18), 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.