BNDD vs. TLT

Last updated Jun 3, 2026

BNDD (Quadratic Deflation ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both Government Bonds funds. BNDD is actively managed, while TLT is passively managed. Over the past 3 years, BNDD returned -3.89%/yr vs -1.67%/yr for TLT. A 0.75 correlation means they provide meaningful diversification when combined. BNDD charges 1.02%/yr vs 0.15%/yr for TLT.

Performance

BNDD vs. TLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Quadratic Deflation ETF (BNDD) and iShares 20+ Year Treasury Bond ETF (TLT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDD achieves a 4.40% return, which is significantly higher than TLT's 0.13% return.

BNDD

• 1D: 0.16%
• 1M: 1.14%
• YTD: 4.40%
• 6M: 2.37%
• 1Y: 3.68%
• 3Y*: -3.89%
• 5Y*: —
• 10Y*: —

TLT

• 1D: 0.21%
• 1M: 0.44%
• YTD: 0.13%
• 6M: -1.35%
• 1Y: 5.16%
• 3Y*: -1.67%
• 5Y*: -5.98%
• 10Y*: -1.62%

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

BNDD vs. TLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
BNDD Quadratic Deflation ETF	4.40%	-8.17%	-6.65%	4.02%	-17.48%	5.54%
TLT iShares 20+ Year Treasury Bond ETF	0.13%	4.25%	-8.05%	2.77%	-31.23%	-1.31%

Correlation

The correlation between BNDD and TLT is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	0.75

The correlation between BNDD and TLT shifts across timeframes, from 0.64 (1 year) to 0.75 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BNDD vs. TLT — Risk / Return Rank

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

BNDD

BNDD Risk / Return Rank: 14
BNDD Sharpe Ratio Rank: 14
BNDD Sortino Ratio Rank: 13
BNDD Omega Ratio Rank: 13
BNDD Calmar Ratio Rank: 14
BNDD Martin Ratio Rank: 13

TLT

TLT Risk / Return Rank: 16
TLT Sharpe Ratio Rank: 17
TLT Sortino Ratio Rank: 17
TLT Omega Ratio Rank: 16
TLT Calmar Ratio Rank: 15
TLT Martin Ratio Rank: 15

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.

BNDD vs. TLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Quadratic Deflation ETF (BNDD) and iShares 20+ Year Treasury Bond ETF (TLT). 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.

	BNDD	TLT	Difference
Sharpe ratio Return per unit of total volatility	0.35	0.53	-0.18
Sortino ratio Return per unit of downside risk	0.56	0.83	-0.27
Omega ratio Gain probability vs. loss probability	1.07	1.09	-0.03
Calmar ratio Return relative to maximum drawdown	0.48	0.55	-0.07
Martin ratio Return relative to average drawdown	1.04	1.38	-0.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BNDD vs. TLT - Sharpe Ratio Comparison

The current BNDD Sharpe Ratio is 0.35, which is lower than the TLT Sharpe Ratio of 0.53. The chart below compares the historical Sharpe Ratios of BNDD and TLT, 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

	BNDD	TLT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.35	0.53	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.38	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.11	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.33	0.26	-0.58

Drawdowns

BNDD vs. TLT - Drawdown Comparison

The maximum BNDD drawdown since its inception was -30.87%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for BNDD and TLT.

Drawdown Indicators

	BNDD	TLT	Difference
Max Drawdown Largest peak-to-trough decline	-30.87%	-48.35%	+17.48%
Max Drawdown (1Y) Largest decline over 1 year	-6.09%	-7.58%	+1.49%
Max Drawdown (3Y) Largest decline over 3 years	-20.75%	-19.18%	-1.57%
Max Drawdown (5Y) Largest decline over 5 years	—	-43.70%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-48.35%	—
Current Drawdown Current decline from peak	-26.45%	-40.20%	+13.75%
Average Drawdown Average peak-to-trough decline	-19.33%	-13.81%	-5.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	3.02%	-0.20%

Volatility

BNDD vs. TLT - Volatility Comparison

The current volatility for Quadratic Deflation ETF (BNDD) is 2.24%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.84%. This indicates that BNDD experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDD	TLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.24%	2.84%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	8.12%	6.60%	+1.52%
Volatility (1Y) Calculated over the trailing 1-year period	10.62%	9.81%	+0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.38%	15.87%	-2.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.38%	14.91%	-1.53%

BNDD vs. TLT - Expense Ratio Comparison

BNDD has a 1.02% expense ratio, which is higher than TLT's 0.15% expense ratio.

Dividends

BNDD vs. TLT - Dividend Comparison

BNDD's dividend yield for the trailing twelve months is around 3.60%, less than TLT's 4.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BNDD Quadratic Deflation ETF	3.60%	3.82%	3.85%	4.30%	43.17%	1.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TLT iShares 20+ Year Treasury Bond ETF	4.57%	4.43%	4.30%	3.38%	2.67%	1.50%	1.50%	2.27%	2.63%	2.43%	2.60%	2.61%

Frequently Asked Questions

Can I hold both BNDD and TLT in my portfolio?

BNDD and TLT have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BNDD or TLT?

TLT has higher volatility (2.84%) compared to BNDD (2.24%). In terms of maximum drawdown, BNDD dropped -30.87% vs TLT's -48.35%.

Which ETF is better, BNDD or TLT?

On 3-year performance, TLT leads with -1.67% vs -3.89% for BNDD. On fees, TLT is cheaper at 0.15% per year. On volatility, BNDD has been the lower-risk option at 2.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BNDD or TLT?

Over the 3-year period, TLT has performed better with a -1.67% return vs -3.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BNDD or TLT?

TLT is cheaper with a 0.15% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, BNDD or TLT?

TLT has the higher dividend yield at 4.57%, compared with 3.60% for BNDD.

What is the main difference between BNDD and TLT?

They also come from different issuers: KraneShares and iShares. Their fees differ too: 1.02% for BNDD and 0.15% for TLT.

Which has better risk-adjusted returns?

TLT currently has the higher Sharpe Ratio (0.53 vs 0.35), 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.