BNDW vs. TMSF

Last updated Jun 3, 2026

BNDW (Vanguard Total World Bond ETF) and TMSF (T. Rowe Price Multi-Sector Income ETF) are both exchange-traded funds - BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index, while TMSF is a Multisector Bonds fund actively managed by T. Rowe Price. BNDW is passively managed, while TMSF is actively managed. A 0.64 correlation means they provide meaningful diversification when combined. BNDW charges 0.05%/yr vs 0.37%/yr for TMSF.

Performance

BNDW vs. TMSF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Bond ETF (BNDW) and T. Rowe Price Multi-Sector Income ETF (TMSF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDW achieves a 0.68% return, which is significantly lower than TMSF's 1.91% return.

BNDW

• 1D: 0.10%
• 1M: 0.44%
• YTD: 0.68%
• 6M: 0.54%
• 1Y: 3.74%
• 3Y*: 4.08%
• 5Y*: 0.33%
• 10Y*: —

TMSF

• 1D: -0.01%
• 1M: 0.61%
• YTD: 1.91%
• 6M: 2.73%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BNDW vs. TMSF - Yearly Performance Comparison

	2026 (YTD)	2025
BNDW Vanguard Total World Bond ETF	0.68%	0.09%
TMSF T. Rowe Price Multi-Sector Income ETF	1.91%	1.29%

Correlation

The correlation between BNDW and TMSF is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Nov 21, 2025	0.64

Return for Risk

BNDW vs. TMSF — Risk / Return Rank

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

BNDW

BNDW Risk / Return Rank: 29
BNDW Sharpe Ratio Rank: 31
BNDW Sortino Ratio Rank: 30
BNDW Omega Ratio Rank: 29
BNDW Calmar Ratio Rank: 27
BNDW Martin Ratio Rank: 27

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. TMSF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Bond ETF (BNDW) and T. Rowe Price Multi-Sector Income ETF (TMSF). 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	TMSF	Difference
Sharpe ratio Return per unit of total volatility	1.12	—	—
Sortino ratio Return per unit of downside risk	1.60	—	—
Omega ratio Gain probability vs. loss probability	1.19	—	—
Calmar ratio Return relative to maximum drawdown	1.34	—	—
Martin ratio Return relative to average drawdown	3.82	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	BNDW	TMSF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.12	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.06	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	2.15	-1.77

Drawdowns

BNDW vs. TMSF - Drawdown Comparison

The maximum BNDW drawdown since its inception was -17.22%, which is greater than TMSF's maximum drawdown of -2.28%. Use the drawdown chart below to compare losses from any high point for BNDW and TMSF.

Drawdown Indicators

	BNDW	TMSF	Difference
Max Drawdown Largest peak-to-trough decline	-17.22%	-2.28%	-14.94%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	—	—
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	-1.27%	-0.05%	-1.22%
Average Drawdown Average peak-to-trough decline	-4.98%	-0.38%	-4.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	—	—

Volatility

Volatility by Period

	BNDW	TMSF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.31%	—	—
Volatility (6M) Calculated over the trailing 6-month period	2.63%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	3.35%	2.93%	+0.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.21%	2.93%	+2.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.90%	2.93%	+1.97%

BNDW vs. TMSF - Expense Ratio Comparison

BNDW has a 0.05% expense ratio, which is lower than TMSF's 0.37% expense ratio.

Dividends

BNDW vs. TMSF - Dividend Comparison

BNDW's dividend yield for the trailing twelve months is around 4.20%, more than TMSF's 3.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
BNDW Vanguard Total World Bond ETF	4.20%	4.12%	3.90%	3.73%	2.02%	2.58%	1.56%	3.05%	1.66%
TMSF T. Rowe Price Multi-Sector Income ETF	3.05%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BNDW and TMSF in my portfolio?

BNDW and TMSF have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BNDW or TMSF?

On fees, BNDW is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BNDW or TMSF?

BNDW is cheaper with a 0.05% expense ratio, compared with 0.37% for TMSF.

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

BNDW has the higher dividend yield at 4.20%, compared with 3.05% for TMSF.

What is the main difference between BNDW and TMSF?

BNDW is categorized as Global Bonds, while TMSF is Multisector Bonds. They also come from different issuers: Vanguard and T. Rowe Price. Their fees differ too: 0.05% for BNDW and 0.37% for TMSF.