BNDD vs. VGIT

Last updated Jun 3, 2026

BNDD (Quadratic Deflation ETF) and VGIT (Vanguard Intermediate-Term Treasury ETF) are both Government Bonds funds. BNDD is actively managed, while VGIT is passively managed. Over the past 3 years, BNDD returned -3.89%/yr vs 3.47%/yr for VGIT. At a 0.41 correlation, their price movements are largely independent. BNDD charges 1.02%/yr vs 0.03%/yr for VGIT.

Performance

BNDD vs. VGIT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Quadratic Deflation ETF (BNDD) and Vanguard Intermediate-Term Treasury ETF (VGIT). 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 VGIT's -0.27% return.

BNDD

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

VGIT

• 1D: 0.03%
• 1M: -0.23%
• YTD: -0.27%
• 6M: -0.28%
• 1Y: 3.64%
• 3Y*: 3.47%
• 5Y*: 0.15%
• 10Y*: 1.25%

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

BNDD vs. VGIT - 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%
VGIT Vanguard Intermediate-Term Treasury ETF	-0.27%	7.34%	1.39%	4.28%	-10.53%	-1.54%

Correlation

The correlation between BNDD and VGIT is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	0.41

The correlation between BNDD and VGIT shifts across timeframes, from 0.30 (1 year) to 0.41 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BNDD vs. VGIT — 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

VGIT

VGIT Risk / Return Rank: 28
VGIT Sharpe Ratio Rank: 30
VGIT Sortino Ratio Rank: 30
VGIT Omega Ratio Rank: 28
VGIT Calmar Ratio Rank: 25
VGIT Martin Ratio Rank: 26

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. VGIT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Quadratic Deflation ETF (BNDD) and Vanguard Intermediate-Term Treasury ETF (VGIT). 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	VGIT	Difference
Sharpe ratio Return per unit of total volatility	0.35	1.08	-0.74
Sortino ratio Return per unit of downside risk	0.56	1.65	-1.08
Omega ratio Gain probability vs. loss probability	1.07	1.19	-0.12
Calmar ratio Return relative to maximum drawdown	0.48	1.20	-0.72
Martin ratio Return relative to average drawdown	1.04	3.64	-2.61
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. VGIT - Sharpe Ratio Comparison

The current BNDD Sharpe Ratio is 0.35, which is lower than the VGIT Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of BNDD and VGIT, 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	VGIT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.35	1.08	-0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.03	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.28	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.33	0.50	-0.83

Drawdowns

BNDD vs. VGIT - Drawdown Comparison

The maximum BNDD drawdown since its inception was -30.87%, which is greater than VGIT's maximum drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for BNDD and VGIT.

Drawdown Indicators

	BNDD	VGIT	Difference
Max Drawdown Largest peak-to-trough decline	-30.87%	-16.05%	-14.82%
Max Drawdown (1Y) Largest decline over 1 year	-6.09%	-2.83%	-3.26%
Max Drawdown (3Y) Largest decline over 3 years	-20.75%	-4.34%	-16.41%
Max Drawdown (5Y) Largest decline over 5 years	—	-15.02%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-16.05%	—
Current Drawdown Current decline from peak	-26.45%	-2.21%	-24.24%
Average Drawdown Average peak-to-trough decline	-19.33%	-3.52%	-15.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	0.93%	+1.89%

Volatility

BNDD vs. VGIT - Volatility Comparison

Quadratic Deflation ETF (BNDD) has a higher volatility of 2.24% compared to Vanguard Intermediate-Term Treasury ETF (VGIT) at 1.06%. This indicates that BNDD's price experiences larger fluctuations and is considered to be riskier than VGIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDD	VGIT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.24%	1.06%	+1.18%
Volatility (6M) Calculated over the trailing 6-month period	8.12%	2.35%	+5.77%
Volatility (1Y) Calculated over the trailing 1-year period	10.62%	3.38%	+7.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.38%	5.38%	+8.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.38%	4.50%	+8.88%

BNDD vs. VGIT - Expense Ratio Comparison

BNDD has a 1.02% expense ratio, which is higher than VGIT's 0.03% expense ratio.

Dividends

BNDD vs. VGIT - Dividend Comparison

BNDD's dividend yield for the trailing twelve months is around 3.60%, less than VGIT's 3.86% 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%
VGIT Vanguard Intermediate-Term Treasury ETF	3.86%	3.79%	3.67%	2.73%	1.74%	1.69%	2.23%	2.24%	2.05%	1.67%	1.69%	1.69%

Frequently Asked Questions

Can I hold both BNDD and VGIT in my portfolio?

BNDD and VGIT have a correlation of 0.30, 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 VGIT?

BNDD has higher volatility (2.24%) compared to VGIT (1.06%). In terms of maximum drawdown, BNDD dropped -30.87% vs VGIT's -16.05%.

Which ETF is better, BNDD or VGIT?

On 3-year performance, VGIT leads with 3.47% vs -3.89% for BNDD. On fees, VGIT is cheaper at 0.03% per year. On volatility, VGIT has been the lower-risk option at 1.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BNDD or VGIT?

Over the 3-year period, VGIT has performed better with a 3.47% 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 VGIT?

VGIT is cheaper with a 0.03% expense ratio, compared with 1.02% for BNDD.

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

VGIT has the higher dividend yield at 3.86%, compared with 3.60% for BNDD.

What is the main difference between BNDD and VGIT?

They also come from different issuers: KraneShares and Vanguard. Their fees differ too: 1.02% for BNDD and 0.03% for VGIT.

Which has better risk-adjusted returns?

VGIT currently has the higher Sharpe Ratio (1.08 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.