BNDC vs. BHYB

Last updated Jun 24, 2026

BNDC (FlexShares Core Select Bond Fund) and BHYB (Xtrackers USD High Yield BB-B ex Financials ETF) are both exchange-traded funds - BNDC is a Intermediate Core Bond fund actively managed by Northern Trust, while BHYB is a High Yield Bonds fund tracking the ICE BofA BB-B Non-FNCL Non-Distressed US HY Constrained Index - Benchmark TR Gross. BNDC is actively managed, while BHYB is passively managed. Over the past year, BNDC returned 3.93% vs 6.65% for BHYB. A 0.58 correlation means they provide meaningful diversification when combined. BNDC charges 0.35%/yr vs 0.20%/yr for BHYB.

Performance

BNDC vs. BHYB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Core Select Bond Fund (BNDC) and Xtrackers USD High Yield BB-B ex Financials ETF (BHYB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDC achieves a 0.15% return, which is significantly lower than BHYB's 2.02% return.

BNDC

• 1D: 0.11%
• 1M: 0.68%
• YTD: 0.15%
• 6M: 0.20%
• 1Y: 3.93%
• 3Y*: 3.72%
• 5Y*: -0.30%
• 10Y*: —

BHYB

• 1D: 0.01%
• 1M: 0.65%
• YTD: 2.02%
• 6M: 2.17%
• 1Y: 6.65%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BNDC vs. BHYB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BNDC FlexShares Core Select Bond Fund	0.15%	7.29%	0.86%	8.43%
BHYB Xtrackers USD High Yield BB-B ex Financials ETF	2.02%	8.90%	6.44%	8.23%

Correlation

The correlation between BNDC and BHYB is 0.60, 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	0.60
Correlation (All Time) Calculated using the full available price history since Oct 27, 2023	0.58

The correlation between BNDC and BHYB has been stable across timeframes, ranging from 0.58 to 0.60 - a consistent structural relationship.

Return for Risk

BNDC vs. BHYB — Risk / Return Rank

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

BNDC

BNDC Risk / Return Rank: 29
BNDC Sharpe Ratio Rank: 30
BNDC Sortino Ratio Rank: 30
BNDC Omega Ratio Rank: 27
BNDC Calmar Ratio Rank: 29
BNDC Martin Ratio Rank: 29

BHYB

BHYB Risk / Return Rank: 70
BHYB Sharpe Ratio Rank: 64
BHYB Sortino Ratio Rank: 73
BHYB Omega Ratio Rank: 72
BHYB Calmar Ratio Rank: 63
BHYB Martin Ratio Rank: 76

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.

BNDC vs. BHYB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Core Select Bond Fund (BNDC) and Xtrackers USD High Yield BB-B ex Financials ETF (BHYB). 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.

	BNDC	BHYB	Difference
Sharpe ratio: Return per unit of total volatility	1.03	1.94	-0.91
Sortino ratio: Return per unit of downside risk	1.55	3.05	-1.50
Omega ratio: Gain probability vs. loss probability	1.18	1.39	-0.21
Calmar ratio: Return relative to maximum drawdown	1.37	2.94	-1.56
Martin ratio: Return relative to average drawdown	3.79	13.42	-9.63

BNDC vs. BHYB - Sharpe Ratio Comparison

The current BNDC Sharpe Ratio is 1.03, which is lower than the BHYB Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of BNDC and BHYB, 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

BNDC vs. BHYB - Drawdown Comparison

The maximum BNDC drawdown since its inception was -18.80%, which is greater than BHYB's maximum drawdown of -4.23%. Use the drawdown chart below to compare losses from any high point for BNDC and BHYB.

Drawdown Indicators

	BNDC	BHYB	Difference
Max Drawdown Largest peak-to-trough decline	-18.80%	-4.23%	-14.57%
Max Drawdown (1Y) Largest decline over 1 year	-2.87%	-2.27%	-0.60%
Max Drawdown (3Y) Largest decline over 3 years	-6.30%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-18.60%	—	—
Current Drawdown Current decline from peak	-3.27%	-0.15%	-3.12%
Average Drawdown Average peak-to-trough decline	-7.33%	-0.39%	-6.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.04%	0.50%	+0.54%

Volatility

BNDC vs. BHYB - Volatility Comparison

FlexShares Core Select Bond Fund (BNDC) has a higher volatility of 1.02% compared to Xtrackers USD High Yield BB-B ex Financials ETF (BHYB) at 0.89%. This indicates that BNDC's price experiences larger fluctuations and is considered to be riskier than BHYB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDC	BHYB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.02%	0.89%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	2.84%	2.58%	+0.26%
Volatility (1Y) Calculated over the trailing 1-year period	3.84%	3.44%	+0.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.08%	4.68%	+1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.04%	4.68%	+3.36%

BNDC vs. BHYB - Expense Ratio Comparison

BNDC has a 0.35% expense ratio, which is higher than BHYB's 0.20% expense ratio.

Dividends

BNDC vs. BHYB - Dividend Comparison

BNDC's dividend yield for the trailing twelve months is around 4.14%, less than BHYB's 6.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BHYB Xtrackers USD High Yield BB-B ex Financials ETF	6.31%	6.57%	7.04%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BNDC FlexShares Core Select Bond Fund	4.14%	4.16%	3.81%	3.19%	2.64%	1.72%	2.61%	2.89%	2.86%	2.50%	0.64%

Frequently Asked Questions

Can I hold both BNDC and BHYB in my portfolio?

BNDC and BHYB have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BNDC or BHYB?

BNDC has higher volatility (1.02%) compared to BHYB (0.89%). In terms of maximum drawdown, BNDC dropped -18.80% vs BHYB's -4.23%.

Which ETF is better, BNDC or BHYB?

On 1-year performance, BHYB leads with 6.65% vs 3.93% for BNDC. On fees, BHYB is cheaper at 0.20% per year. On volatility, BHYB has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BNDC or BHYB?

Over the 1-year period, BHYB has performed better with a 6.65% return vs 3.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BNDC or BHYB?

BHYB is cheaper with a 0.20% expense ratio, compared with 0.35% for BNDC.

Which ETF pays a higher dividend yield, BNDC or BHYB?

BHYB has the higher dividend yield at 6.31%, compared with 4.14% for BNDC.

What is the main difference between BNDC and BHYB?

BNDC is categorized as Intermediate Core Bond, while BHYB is High Yield Bonds. They also come from different issuers: Northern Trust and Xtrackers. Their fees differ too: 0.35% for BNDC and 0.20% for BHYB.

Which has better risk-adjusted returns?

BHYB currently has the higher Sharpe Ratio (1.94 vs 1.03), 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.