BNDD vs. UTRE

Last updated Jun 26, 2026

BNDD (Quadratic Deflation ETF) and UTRE (US Treasury 3 Year Note ETF) are both Government Bonds funds. BNDD is actively managed, while UTRE is passively managed. Over the past 3 years, BNDD returned -3.83%/yr vs 3.82%/yr for UTRE. At a 0.15 correlation, their price movements are largely independent. BNDD charges 1.02%/yr vs 0.15%/yr for UTRE.

Performance

BNDD vs. UTRE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Quadratic Deflation ETF (BNDD) and US Treasury 3 Year Note ETF (UTRE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDD achieves a 7.62% return, which is significantly higher than UTRE's 0.14% return.

BNDD

• 1D: 0.42%
• 1M: 3.77%
• YTD: 7.62%
• 6M: 5.99%
• 1Y: 5.11%
• 3Y*: -3.83%
• 5Y*: —
• 10Y*: —

UTRE

• 1D: 0.04%
• 1M: 0.23%
• YTD: 0.14%
• 6M: 0.25%
• 1Y: 2.48%
• 3Y*: 3.82%
• 5Y*: —
• 10Y*: —

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

BNDD vs. UTRE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BNDD Quadratic Deflation ETF	7.62%	-8.17%	-6.65%	-1.91%
UTRE US Treasury 3 Year Note ETF	0.14%	5.68%	2.96%	2.34%

Correlation

The correlation between BNDD and UTRE is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (All Time) Calculated using the full available price history since Mar 28, 2023	0.15

Return for Risk

BNDD vs. UTRE — Risk / Return Rank

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

BNDD

BNDD Risk / Return Rank: 17
BNDD Sharpe Ratio Rank: 17
BNDD Sortino Ratio Rank: 15
BNDD Omega Ratio Rank: 15
BNDD Calmar Ratio Rank: 20
BNDD Martin Ratio Rank: 18

UTRE

UTRE Risk / Return Rank: 37
UTRE Sharpe Ratio Rank: 37
UTRE Sortino Ratio Rank: 39
UTRE Omega Ratio Rank: 36
UTRE Calmar Ratio Rank: 38
UTRE Martin Ratio Rank: 33

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. UTRE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Quadratic Deflation ETF (BNDD) and US Treasury 3 Year Note ETF (UTRE). 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.

	BNDD	UTRE	Difference
Sharpe ratio: Return per unit of total volatility	0.49	1.22	-0.73
Sortino ratio: Return per unit of downside risk	0.76	1.87	-1.11
Omega ratio: Gain probability vs. loss probability	1.09	1.22	-0.13
Calmar ratio: Return relative to maximum drawdown	0.84	1.73	-0.89
Martin ratio: Return relative to average drawdown	1.81	4.56	-2.75

BNDD vs. UTRE - Sharpe Ratio Comparison

The current BNDD Sharpe Ratio is 0.49, which is lower than the UTRE Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of BNDD and UTRE, 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

BNDD vs. UTRE - Drawdown Comparison

The maximum BNDD drawdown since its inception was -30.87%, which is greater than UTRE's maximum drawdown of -2.80%. Use the drawdown chart below to compare losses from any high point for BNDD and UTRE.

Drawdown Indicators

	BNDD	UTRE	Difference
Max Drawdown Largest peak-to-trough decline	-30.87%	-2.80%	-28.07%
Max Drawdown (1Y) Largest decline over 1 year	-6.09%	-1.44%	-4.65%
Max Drawdown (3Y) Largest decline over 3 years	-20.75%	-1.86%	-18.89%
Current Drawdown Current decline from peak	-24.18%	-0.85%	-23.33%
Average Drawdown Average peak-to-trough decline	-19.39%	-0.78%	-18.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	0.54%	+2.28%

Volatility

BNDD vs. UTRE - Volatility Comparison

Quadratic Deflation ETF (BNDD) has a higher volatility of 2.66% compared to US Treasury 3 Year Note ETF (UTRE) at 0.69%. This indicates that BNDD's price experiences larger fluctuations and is considered to be riskier than UTRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDD	UTRE	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.66%	0.69%	+1.97%
Volatility (6M) Calculated over the trailing 6-month period	8.29%	1.51%	+6.78%
Volatility (1Y) Calculated over the trailing 1-year period	10.50%	2.04%	+8.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.34%	2.70%	+10.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.34%	2.70%	+10.64%

BNDD vs. UTRE - Expense Ratio Comparison

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

Dividends

BNDD vs. UTRE - Dividend Comparison

BNDD's dividend yield for the trailing twelve months is around 3.50%, which matches UTRE's 3.49% yield.

Position	TTM	2025	2024	2023	2022	2021
BNDD Quadratic Deflation ETF	3.50%	3.82%	3.85%	4.30%	43.17%	1.04%
UTRE US Treasury 3 Year Note ETF	3.49%	3.60%	4.01%	3.14%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BNDD and UTRE in my portfolio?

BNDD and UTRE have a correlation of 0.13, 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 UTRE?

BNDD has higher volatility (2.66%) compared to UTRE (0.69%). In terms of maximum drawdown, BNDD dropped -30.87% vs UTRE's -2.80%.

Which ETF is better, BNDD or UTRE?

On 3-year performance, UTRE leads with 3.82% vs -3.83% for BNDD. On fees, UTRE is cheaper at 0.15% per year. On volatility, UTRE has been the lower-risk option at 0.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BNDD or UTRE?

Over the 3-year period, UTRE has performed better with a 3.82% return vs -3.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BNDD or UTRE?

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

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

BNDD has the higher dividend yield at 3.50%, compared with 3.49% for UTRE.

What is the main difference between BNDD and UTRE?

They also come from different issuers: KraneShares and US Benchmark Series. Their fees differ too: 1.02% for BNDD and 0.15% for UTRE.

Which has better risk-adjusted returns?

UTRE currently has the higher Sharpe Ratio (1.22 vs 0.49), 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.