BNDC vs. IBTO

Last updated Jun 5, 2026

BNDC (FlexShares Core Select Bond Fund) and IBTO (iShares iBonds Dec 2033 Term Treasury ETF) are both Intermediate Core Bond funds. BNDC is actively managed, while IBTO is passively managed. Over the past year, BNDC returned 4.25% vs 3.44% for IBTO. With a 0.96 correlation, they move nearly in lockstep. BNDC charges 0.35%/yr vs 0.07%/yr for IBTO.

Performance

BNDC vs. IBTO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Core Select Bond Fund (BNDC) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDC achieves a 0.07% return, which is significantly higher than IBTO's -0.45% return.

BNDC

• 1D: 0.13%
• 1M: 0.12%
• YTD: 0.07%
• 6M: 0.16%
• 1Y: 4.25%
• 3Y*: 3.76%
• 5Y*: -0.19%
• 10Y*: —

IBTO

• 1D: 0.12%
• 1M: -0.11%
• YTD: -0.45%
• 6M: -0.59%
• 1Y: 3.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BNDC vs. IBTO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BNDC FlexShares Core Select Bond Fund	0.07%	7.29%	0.86%	3.56%
IBTO iShares iBonds Dec 2033 Term Treasury ETF	-0.45%	8.23%	-0.87%	1.71%

Correlation

The correlation between BNDC and IBTO is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jun 30, 2023	0.96

The correlation between BNDC and IBTO has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

Return for Risk

BNDC vs. IBTO — Risk / Return Rank

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

BNDC

BNDC Risk / Return Rank: 30
BNDC Sharpe Ratio Rank: 31
BNDC Sortino Ratio Rank: 31
BNDC Omega Ratio Rank: 28
BNDC Calmar Ratio Rank: 31
BNDC Martin Ratio Rank: 30

IBTO

IBTO Risk / Return Rank: 22
IBTO Sharpe Ratio Rank: 23
IBTO Sortino Ratio Rank: 23
IBTO Omega Ratio Rank: 21
IBTO Calmar Ratio Rank: 21
IBTO Martin Ratio Rank: 22

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. IBTO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Core Select Bond Fund (BNDC) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO). 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.

	BNDC	IBTO	Difference
Sharpe ratio: Return per unit of total volatility	1.09	0.78	+0.30
Sortino ratio: Return per unit of downside risk	1.62	1.18	+0.44
Omega ratio: Gain probability vs. loss probability	1.19	1.13	+0.05
Calmar ratio: Return relative to maximum drawdown	1.49	0.94	+0.54
Martin ratio: Return relative to average drawdown	4.39	2.72	+1.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BNDC vs. IBTO - Sharpe Ratio Comparison

The current BNDC Sharpe Ratio is 1.09, which is higher than the IBTO Sharpe Ratio of 0.78. The chart below compares the historical Sharpe Ratios of BNDC and IBTO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BNDC	IBTO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.09	0.78	+0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.44	-0.23

Drawdowns

BNDC vs. IBTO - Drawdown Comparison

The maximum BNDC drawdown since its inception was -18.80%, which is greater than IBTO's maximum drawdown of -8.36%. Use the drawdown chart below to compare losses from any high point for BNDC and IBTO.

Drawdown Indicators

	BNDC	IBTO	Difference
Max Drawdown Largest peak-to-trough decline	-18.80%	-8.36%	-10.44%
Max Drawdown (1Y) Largest decline over 1 year	-2.87%	-3.66%	+0.79%
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	-3.34%	-2.51%	-0.83%
Average Drawdown Average peak-to-trough decline	-7.35%	-2.37%	-4.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.97%	1.27%	-0.30%

Volatility

BNDC vs. IBTO - Volatility Comparison

The current volatility for FlexShares Core Select Bond Fund (BNDC) is 1.23%, while iShares iBonds Dec 2033 Term Treasury ETF (IBTO) has a volatility of 1.32%. This indicates that BNDC experiences smaller price fluctuations and is considered to be less risky than IBTO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDC	IBTO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	1.32%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	2.78%	3.02%	-0.24%
Volatility (1Y) Calculated over the trailing 1-year period	3.99%	4.46%	-0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.07%	6.61%	-0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.05%	6.61%	+1.44%

BNDC vs. IBTO - Expense Ratio Comparison

BNDC has a 0.35% expense ratio, which is higher than IBTO's 0.07% expense ratio.

Dividends

BNDC vs. IBTO - Dividend Comparison

BNDC's dividend yield for the trailing twelve months is around 4.15%, which matches IBTO's 4.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BNDC FlexShares Core Select Bond Fund	4.15%	4.16%	3.81%	3.19%	2.64%	1.72%	2.61%	2.89%	2.86%	2.50%	0.64%
IBTO iShares iBonds Dec 2033 Term Treasury ETF	4.15%	4.05%	4.23%	1.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BNDC and IBTO in my portfolio?

With a correlation of 0.93, BNDC and IBTO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, BNDC or IBTO?

IBTO has higher volatility (1.32%) compared to BNDC (1.23%). In terms of maximum drawdown, BNDC dropped -18.80% vs IBTO's -8.36%.

Which ETF is better, BNDC or IBTO?

On 1-year performance, BNDC leads with 4.25% vs 3.44% for IBTO. On fees, IBTO is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BNDC or IBTO?

Over the 1-year period, BNDC has performed better with a 4.25% return vs 3.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BNDC or IBTO?

IBTO is cheaper with a 0.07% expense ratio, compared with 0.35% for BNDC.

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

BNDC and IBTO have nearly identical dividend yields, around 4.15%.

What is the main difference between BNDC and IBTO?

They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.35% for BNDC and 0.07% for IBTO.

Which has better risk-adjusted returns?

BNDC currently has the higher Sharpe Ratio (1.09 vs 0.78), 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.