BNDW vs. AVGB

Last updated Jun 5, 2026

BNDW (Vanguard Total World Bond ETF) and AVGB (Avantis Credit ETF) are both Global Bonds funds. BNDW is passively managed, while AVGB is actively managed. Over the past year, BNDW returned 3.25% vs 4.50% for AVGB. Their correlation of 0.87 suggests significant overlap in exposure. BNDW charges 0.05%/yr vs 0.19%/yr for AVGB.

Performance

BNDW vs. AVGB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Bond ETF (BNDW) and Avantis Credit ETF (AVGB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDW achieves a 0.54% return, which is significantly lower than AVGB's 0.84% return.

BNDW

• 1D: 0.12%
• 1M: 0.42%
• YTD: 0.54%
• 6M: 0.44%
• 1Y: 3.25%
• 3Y*: 4.07%
• 5Y*: 0.25%
• 10Y*: —

AVGB

• 1D: 0.13%
• 1M: 0.63%
• YTD: 0.84%
• 6M: 1.06%
• 1Y: 4.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BNDW vs. AVGB - Yearly Performance Comparison

	2026 (YTD)	2025
BNDW Vanguard Total World Bond ETF	0.54%	3.38%
AVGB Avantis Credit ETF	0.84%	4.89%

Correlation

The correlation between BNDW and AVGB is 0.88, 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	0.88
Correlation (All Time) Calculated using the full available price history since Apr 21, 2025	0.87

The correlation between BNDW and AVGB has been stable across timeframes, ranging from 0.87 to 0.88 - a consistent structural relationship.

Return for Risk

BNDW vs. AVGB — Risk / Return Rank

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

BNDW

BNDW Risk / Return Rank: 26
BNDW Sharpe Ratio Rank: 28
BNDW Sortino Ratio Rank: 26
BNDW Omega Ratio Rank: 26
BNDW Calmar Ratio Rank: 26
BNDW Martin Ratio Rank: 26

AVGB

AVGB Risk / Return Rank: 52
AVGB Sharpe Ratio Rank: 55
AVGB Sortino Ratio Rank: 58
AVGB Omega Ratio Rank: 56
AVGB Calmar Ratio Rank: 44
AVGB Martin Ratio Rank: 48

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.

BNDW vs. AVGB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Bond ETF (BNDW) and Avantis Credit ETF (AVGB). 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.

	BNDW	AVGB	Difference
Sharpe ratio: Return per unit of total volatility	0.98	1.83	-0.85
Sortino ratio: Return per unit of downside risk	1.39	2.71	-1.31
Omega ratio: Gain probability vs. loss probability	1.17	1.34	-0.17
Calmar ratio: Return relative to maximum drawdown	1.21	2.13	-0.92
Martin ratio: Return relative to average drawdown	3.42	7.95	-4.53
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BNDW vs. AVGB - Sharpe Ratio Comparison

The current BNDW Sharpe Ratio is 0.98, which is lower than the AVGB Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of BNDW and AVGB, 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

	BNDW	AVGB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.98	1.83	-0.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.05	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	2.06	-1.69

Drawdowns

BNDW vs. AVGB - Drawdown Comparison

The maximum BNDW drawdown since its inception was -17.22%, which is greater than AVGB's maximum drawdown of -2.12%. Use the drawdown chart below to compare losses from any high point for BNDW and AVGB.

Drawdown Indicators

	BNDW	AVGB	Difference
Max Drawdown Largest peak-to-trough decline	-17.22%	-2.12%	-15.10%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-2.12%	-0.58%
Max Drawdown (3Y) Largest decline over 3 years	-4.27%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-16.93%	—	—
Current Drawdown Current decline from peak	-1.42%	-0.37%	-1.05%
Average Drawdown Average peak-to-trough decline	-4.98%	-0.33%	-4.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.57%	+0.39%

Volatility

BNDW vs. AVGB - Volatility Comparison

Vanguard Total World Bond ETF (BNDW) has a higher volatility of 1.31% compared to Avantis Credit ETF (AVGB) at 0.84%. This indicates that BNDW's price experiences larger fluctuations and is considered to be riskier than AVGB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDW	AVGB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.31%	0.84%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	2.63%	1.91%	+0.72%
Volatility (1Y) Calculated over the trailing 1-year period	3.36%	2.48%	+0.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.21%	2.48%	+2.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.90%	2.48%	+2.42%

BNDW vs. AVGB - Expense Ratio Comparison

BNDW has a 0.05% expense ratio, which is lower than AVGB's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

BNDW vs. AVGB - Dividend Comparison

BNDW's dividend yield for the trailing twelve months is around 4.21%, more than AVGB's 3.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
AVGB Avantis Credit ETF	3.46%	3.49%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BNDW Vanguard Total World Bond ETF	4.21%	4.12%	3.90%	3.73%	2.02%	2.58%	1.56%	3.05%	1.66%

Frequently Asked Questions

Can I hold both BNDW and AVGB in my portfolio?

BNDW and AVGB have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BNDW or AVGB?

BNDW has higher volatility (1.31%) compared to AVGB (0.84%). In terms of maximum drawdown, BNDW dropped -17.22% vs AVGB's -2.12%.

Which ETF is better, BNDW or AVGB?

On 1-year performance, AVGB leads with 4.50% vs 3.25% for BNDW. On fees, BNDW is cheaper at 0.05% per year. On volatility, AVGB has been the lower-risk option at 0.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BNDW or AVGB?

Over the 1-year period, AVGB has performed better with a 4.50% return vs 3.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BNDW or AVGB?

BNDW is cheaper with a 0.05% expense ratio, compared with 0.19% for AVGB.

Which ETF pays a higher dividend yield, BNDW or AVGB?

BNDW has the higher dividend yield at 4.21%, compared with 3.46% for AVGB.

What is the main difference between BNDW and AVGB?

They also come from different issuers: Vanguard and Avantis. Their fees differ too: 0.05% for BNDW and 0.19% for AVGB.

Which has better risk-adjusted returns?

AVGB currently has the higher Sharpe Ratio (1.83 vs 0.98), 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.