BND vs. VWOB
BND (Vanguard Total Bond Market ETF) and VWOB (Vanguard Emerging Markets Government Bond ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while VWOB is a Emerging Markets Bonds fund tracking the Bloomberg USD Emerging Markets Government RIC Capped Index. Both are passively managed. Over the past 10 years, BND returned 1.53%/yr vs 3.44%/yr for VWOB. A 0.54 correlation means they provide meaningful diversification when combined. BND charges 0.03%/yr vs 0.15%/yr for VWOB.
Performance
BND vs. VWOB - Performance Comparison
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Returns By Period
In the year-to-date period, BND achieves a -0.07% return, which is significantly lower than VWOB's 0.95% return. Over the past 10 years, BND has underperformed VWOB with an annualized return of 1.53%, while VWOB has yielded a comparatively higher 3.44% annualized return.
BND
- 1D
- -0.03%
- 1M
- -0.67%
- YTD
- -0.07%
- 6M
- 0.23%
- 1Y
- 4.87%
- 3Y*
- 3.89%
- 5Y*
- -0.05%
- 10Y*
- 1.53%
VWOB
- 1D
- -0.18%
- 1M
- -0.48%
- YTD
- 0.95%
- 6M
- 1.64%
- 1Y
- 10.16%
- 3Y*
- 9.06%
- 5Y*
- 1.85%
- 10Y*
- 3.44%
BND vs. VWOB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | -0.07% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
VWOB Vanguard Emerging Markets Government Bond ETF | 0.95% | 13.49% | 5.20% | 10.68% | -17.39% | -1.80% | 5.65% | 14.46% | -2.92% | 8.41% |
Correlation
The correlation between BND and VWOB is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.81 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.73 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Jun 5, 2013 | 0.54 |
Over the past year, BND and VWOB have become more correlated (0.79) than their long-term average of 0.54, meaning their price movements have been converging.
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Return for Risk
BND vs. VWOB — Risk / Return Rank
BND
VWOB
BND vs. VWOB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and Vanguard Emerging Markets Government Bond ETF (VWOB). 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.
| BND | VWOB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.65 | ||
| Sortino ratioReturn per unit of downside risk | -0.89 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.38 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 2.28 | -0.45 |
| Martin ratioReturn relative to average drawdown | 5.43 | 9.60 | -4.18 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BND | VWOB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.32 | 1.97 | -0.65 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.01 | 0.20 | -0.21 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.37 | -0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 0.41 | +0.17 |
Drawdowns
BND vs. VWOB - Drawdown Comparison
The maximum BND drawdown since its inception was -18.58%, smaller than the maximum VWOB drawdown of -26.98%. Use the drawdown chart below to compare losses from any high point for BND and VWOB.
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Drawdown Indicators
| BND | VWOB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.58% | -26.98% | +8.40% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -4.48% | +1.80% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -7.71% | +1.79% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -26.98% | +9.07% |
Max Drawdown (10Y)Largest decline over 10 years | -18.58% | -26.98% | +8.40% |
Current DrawdownCurrent decline from peak | -2.70% | -0.94% | -1.76% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -4.78% | +1.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 1.06% | -0.16% |
Volatility
BND vs. VWOB - Volatility Comparison
The current volatility for Vanguard Total Bond Market ETF (BND) is 1.20%, while Vanguard Emerging Markets Government Bond ETF (VWOB) has a volatility of 1.65%. This indicates that BND experiences smaller price fluctuations and is considered to be less risky than VWOB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BND | VWOB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 1.65% | -0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 2.69% | 4.20% | -1.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.72% | 5.18% | -1.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.02% | 9.18% | -3.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.53% | 9.34% | -3.81% |
BND vs. VWOB - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than VWOB's 0.15% 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. VWOB - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.98%, less than VWOB's 5.88% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.98% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VWOB Vanguard Emerging Markets Government Bond ETF | 5.88% | 5.92% | 6.08% | 5.50% | 5.30% | 4.04% | 4.18% | 4.58% | 4.52% | 4.61% | 4.71% | 4.93% |
Frequently Asked Questions
BND and VWOB have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWOB has higher volatility (1.65%) compared to BND (1.20%). In terms of maximum drawdown, BND dropped -18.58% vs VWOB's -26.98%.
On 10-year performance, VWOB leads with 3.44% vs 1.53% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.20%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VWOB has performed better with a 3.44% return vs 1.53%. 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 0.15% for VWOB.
VWOB has the higher dividend yield at 5.88%, compared with 3.98% for BND.
BND is categorized as Total Bond Market, while VWOB is Emerging Markets Bonds. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while VWOB tracks Bloomberg USD Emerging Markets Government RIC Capped Index. Their fees differ too: 0.03% for BND and 0.15% for VWOB.
VWOB currently has the higher Sharpe Ratio (1.97 vs 1.32), 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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