BNDW vs. SWSBX

Last updated Jun 4, 2026

BNDW (Vanguard Total World Bond ETF) and SWSBX (Schwab Short-Term Bond Index Fund) are both funds - BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index, while SWSBX is a Short-Term Bond fund tracking the Bloomberg US Government/Credit 1-5 Year Index. Both are passively managed. Over the past 5 years, BNDW returned 0.22%/yr vs 1.30%/yr for SWSBX. A 0.75 correlation means they provide meaningful diversification when combined. BNDW charges 0.05%/yr vs 0.06%/yr for SWSBX.

Performance

BNDW vs. SWSBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Bond ETF (BNDW) and Schwab Short-Term Bond Index Fund (SWSBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDW achieves a 0.42% return, which is significantly higher than SWSBX's 0.34% return.

BNDW

• 1D: -0.26%
• 1M: 0.44%
• YTD: 0.42%
• 6M: 0.18%
• 1Y: 3.51%
• 3Y*: 3.99%
• 5Y*: 0.22%
• 10Y*: —

SWSBX

• 1D: 0.00%
• 1M: 0.14%
• YTD: 0.34%
• 6M: 0.60%
• 1Y: 3.75%
• 3Y*: 4.12%
• 5Y*: 1.30%
• 10Y*: —

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

BNDW vs. SWSBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
BNDW Vanguard Total World Bond ETF	0.42%	5.02%	2.42%	7.18%	-12.88%	-2.10%	6.22%	8.37%	1.21%
SWSBX Schwab Short-Term Bond Index Fund	0.34%	6.06%	3.42%	3.95%	-5.89%	-1.28%	4.47%	4.96%	1.30%

Correlation

The correlation between BNDW and SWSBX is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Sep 7, 2018	0.75

The correlation between BNDW and SWSBX has been stable across timeframes, ranging from 0.75 to 0.80 - a consistent structural relationship.

Return for Risk

BNDW vs. SWSBX — Risk / Return Rank

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

BNDW

BNDW Risk / Return Rank: 27
BNDW Sharpe Ratio Rank: 28
BNDW Sortino Ratio Rank: 27
BNDW Omega Ratio Rank: 26
BNDW Calmar Ratio Rank: 27
BNDW Martin Ratio Rank: 26

SWSBX

SWSBX Risk / Return Rank: 38
SWSBX Sharpe Ratio Rank: 33
SWSBX Sortino Ratio Rank: 44
SWSBX Omega Ratio Rank: 41
SWSBX Calmar Ratio Rank: 39
SWSBX Martin Ratio Rank: 34

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. SWSBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Bond ETF (BNDW) and Schwab Short-Term Bond Index Fund (SWSBX). 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	SWSBX	Difference
Sharpe ratio Return per unit of total volatility	1.05	1.64	-0.60
Sortino ratio Return per unit of downside risk	1.50	2.77	-1.27
Omega ratio Gain probability vs. loss probability	1.18	1.34	-0.16
Calmar ratio Return relative to maximum drawdown	1.31	2.37	-1.06
Martin ratio Return relative to average drawdown	3.70	7.75	-4.06
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. SWSBX - Sharpe Ratio Comparison

The current BNDW Sharpe Ratio is 1.05, which is lower than the SWSBX Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of BNDW and SWSBX, 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	SWSBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.05	1.64	-0.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	0.44	-0.39
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.77	-0.40

Drawdowns

BNDW vs. SWSBX - Drawdown Comparison

The maximum BNDW drawdown since its inception was -17.22%, which is greater than SWSBX's maximum drawdown of -9.06%. Use the drawdown chart below to compare losses from any high point for BNDW and SWSBX.

Drawdown Indicators

	BNDW	SWSBX	Difference
Max Drawdown Largest peak-to-trough decline	-17.22%	-9.06%	-8.16%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-1.54%	-1.16%
Max Drawdown (3Y) Largest decline over 3 years	-4.27%	-1.79%	-2.48%
Max Drawdown (5Y) Largest decline over 5 years	-16.93%	-9.06%	-7.87%
Current Drawdown Current decline from peak	-1.53%	-0.63%	-0.90%
Average Drawdown Average peak-to-trough decline	-4.98%	-1.79%	-3.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	0.47%	+0.48%

Volatility

BNDW vs. SWSBX - Volatility Comparison

Vanguard Total World Bond ETF (BNDW) has a higher volatility of 1.31% compared to Schwab Short-Term Bond Index Fund (SWSBX) at 0.70%. This indicates that BNDW's price experiences larger fluctuations and is considered to be riskier than SWSBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDW	SWSBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.31%	0.70%	+0.61%
Volatility (6M) Calculated over the trailing 6-month period	2.62%	1.62%	+1.00%
Volatility (1Y) Calculated over the trailing 1-year period	3.36%	2.23%	+1.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.21%	2.99%	+2.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.90%	2.47%	+2.43%

BNDW vs. SWSBX - Expense Ratio Comparison

BNDW has a 0.05% expense ratio, which is lower than SWSBX's 0.06% 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. SWSBX - Dividend Comparison

BNDW's dividend yield for the trailing twelve months is around 4.21%, more than SWSBX's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
BNDW Vanguard Total World Bond ETF	4.21%	4.12%	3.90%	3.73%	2.02%	2.58%	1.56%	3.05%	1.66%	0.00%
SWSBX Schwab Short-Term Bond Index Fund	4.13%	4.09%	3.66%	2.36%	1.11%	0.97%	1.82%	2.41%	2.12%	1.56%

Frequently Asked Questions

Can I hold both BNDW and SWSBX in my portfolio?

BNDW and SWSBX have a correlation of 0.76, 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 SWSBX?

BNDW has higher volatility (1.31%) compared to SWSBX (0.70%). In terms of maximum drawdown, BNDW dropped -17.22% vs SWSBX's -9.06%.

Which has better risk-adjusted returns?

SWSBX currently has the higher Sharpe Ratio (1.64 vs 1.05), 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.