BNDW vs. SCHZ
BNDW (Vanguard Total World Bond ETF) and SCHZ (Schwab U.S. Aggregate Bond ETF) are both exchange-traded funds - BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index, while SCHZ is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index. Both are passively managed. Over the past 5 years, BNDW returned 0.27%/yr vs 0.03%/yr for SCHZ. Their correlation of 0.92 suggests significant overlap in exposure. BNDW charges 0.05%/yr vs 0.03%/yr for SCHZ.
Performance
BNDW vs. SCHZ - Performance Comparison
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Returns By Period
In the year-to-date period, BNDW achieves a 0.88% return, which is significantly higher than SCHZ's 0.47% return.
BNDW
- 1D
- 0.15%
- 1M
- 0.77%
- YTD
- 0.88%
- 6M
- 0.88%
- 1Y
- 3.23%
- 3Y*
- 4.10%
- 5Y*
- 0.27%
- 10Y*
- —
SCHZ
- 1D
- 0.09%
- 1M
- 0.70%
- YTD
- 0.47%
- 6M
- 0.56%
- 1Y
- 4.29%
- 3Y*
- 3.93%
- 5Y*
- 0.03%
- 10Y*
- 1.49%
BNDW vs. SCHZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
BNDW Vanguard Total World Bond ETF | 0.88% | 5.02% | 2.42% | 7.18% | -12.88% | -2.10% | 6.22% | 8.37% | 1.27% |
SCHZ Schwab U.S. Aggregate Bond ETF | 0.47% | 7.24% | 1.26% | 5.60% | -13.17% | -1.72% | 7.46% | 8.65% | 0.92% |
Correlation
The correlation between BNDW and SCHZ is 0.94, 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 | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Sep 6, 2018 | 0.92 |
The correlation between BNDW and SCHZ has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.
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Return for Risk
BNDW vs. SCHZ — Risk / Return Rank
BNDW
SCHZ
BNDW vs. SCHZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Bond ETF (BNDW) and Schwab U.S. Aggregate Bond ETF (SCHZ). 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.
| BNDW | SCHZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.18 | ||
| Sortino ratioReturn per unit of downside risk | -0.32 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.20 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.20 | 1.60 | -0.39 |
| Martin ratioReturn relative to average drawdown | 3.24 | 4.59 | -1.35 |
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Drawdowns
BNDW vs. SCHZ - Drawdown Comparison
The maximum BNDW drawdown since its inception was -17.22%, smaller than the maximum SCHZ drawdown of -18.74%. Use the drawdown chart below to compare losses from any high point for BNDW and SCHZ.
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Drawdown Indicators
| BNDW | SCHZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.22% | -18.74% | +1.52% |
Max Drawdown (1Y)Largest decline over 1 year | -2.70% | -2.70% | 0.00% |
Max Drawdown (3Y)Largest decline over 3 years | -4.27% | -6.18% | +1.91% |
Max Drawdown (5Y)Largest decline over 5 years | -16.93% | -18.01% | +1.08% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.74% | — |
Current DrawdownCurrent decline from peak | -1.08% | -2.30% | +1.22% |
Average DrawdownAverage peak-to-trough decline | -4.95% | -3.68% | -1.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.00% | 0.94% | +0.06% |
Volatility
BNDW vs. SCHZ - Volatility Comparison
The current volatility for Vanguard Total World Bond ETF (BNDW) is 0.92%, while Schwab U.S. Aggregate Bond ETF (SCHZ) has a volatility of 1.15%. This indicates that BNDW experiences smaller price fluctuations and is considered to be less risky than SCHZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BNDW | SCHZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.92% | 1.15% | -0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 2.70% | 2.78% | -0.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.35% | 3.76% | -0.41% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.22% | 6.09% | -0.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.89% | 5.42% | -0.53% |
BNDW vs. SCHZ - Expense Ratio Comparison
BNDW has a 0.05% expense ratio, which is higher than SCHZ's 0.03% expense ratio. However, 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. SCHZ - Dividend Comparison
BNDW's dividend yield for the trailing twelve months is around 4.19%, more than SCHZ's 4.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BNDW Vanguard Total World Bond ETF | 4.19% | 4.12% | 3.90% | 3.73% | 2.02% | 2.58% | 1.56% | 3.05% | 1.66% | 0.00% | 0.00% | 0.00% |
SCHZ Schwab U.S. Aggregate Bond ETF | 4.11% | 4.05% | 3.96% | 3.28% | 2.63% | 2.16% | 2.43% | 2.79% | 2.56% | 2.40% | 2.24% | 2.11% |
Frequently Asked Questions
With a correlation of 0.94, BNDW and SCHZ 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.
SCHZ has higher volatility (1.15%) compared to BNDW (0.92%). In terms of maximum drawdown, BNDW dropped -17.22% vs SCHZ's -18.74%.
On 5-year performance, BNDW leads with 0.27% vs 0.03% for SCHZ. On fees, SCHZ is cheaper at 0.03% per year. On volatility, BNDW has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, BNDW has performed better with a 0.27% return vs 0.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHZ is cheaper with a 0.03% expense ratio, compared with 0.05% for BNDW.
BNDW has the higher dividend yield at 4.19%, compared with 4.11% for SCHZ.
BNDW is categorized as Global Bonds, while SCHZ is Total Bond Market. BNDW tracks Bloomberg Global Aggregate Float Adjusted Composite Index, while SCHZ tracks Bloomberg US Aggregate Bond Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.05% for BNDW and 0.03% for SCHZ.
SCHZ currently has the higher Sharpe Ratio (1.15 vs 0.97), 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.
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