BNDX vs. MBB
BNDX (Vanguard Total International Bond ETF) and MBB (iShares MBS Bond ETF) are both exchange-traded funds - BNDX is a Global Bonds fund tracking the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged), while MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 10 years, BNDX returned 1.69%/yr vs 1.33%/yr for MBB. A 0.64 correlation means they provide meaningful diversification when combined. BNDX charges 0.07%/yr vs 0.06%/yr for MBB.
Performance
BNDX vs. MBB - Performance Comparison
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Returns By Period
In the year-to-date period, BNDX achieves a 0.85% return, which is significantly lower than MBB's 1.01% return. Over the past 10 years, BNDX has outperformed MBB with an annualized return of 1.69%, while MBB has yielded a comparatively lower 1.33% annualized return.
BNDX
- 1D
- 0.58%
- 1M
- 1.01%
- YTD
- 0.85%
- 6M
- 0.99%
- 1Y
- 1.99%
- 3Y*
- 4.13%
- 5Y*
- 0.29%
- 10Y*
- 1.69%
MBB
- 1D
- 0.65%
- 1M
- 0.67%
- YTD
- 1.01%
- 6M
- 1.29%
- 1Y
- 6.49%
- 3Y*
- 4.43%
- 5Y*
- 0.41%
- 10Y*
- 1.33%
BNDX vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BNDX Vanguard Total International Bond ETF | 0.85% | 2.86% | 3.57% | 8.77% | -12.76% | -2.29% | 4.65% | 7.87% | 2.81% | 2.40% |
MBB iShares MBS Bond ETF | 1.01% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
Correlation
The correlation between BNDX and MBB is 0.73, 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 | 0.73 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Jun 4, 2013 | 0.64 |
The correlation between BNDX and MBB shifts across timeframes, from 0.64 (all time) to 0.78 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
BNDX vs. MBB — Risk / Return Rank
BNDX
MBB
BNDX vs. MBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total International Bond ETF (BNDX) and iShares MBS Bond ETF (MBB). 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.
| BNDX | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.88 | ||
| Sortino ratioReturn per unit of downside risk | -1.31 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.26 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 0.68 | 2.21 | -1.53 |
| Martin ratioReturn relative to average drawdown | 1.90 | 7.06 | -5.16 |
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Drawdowns
BNDX vs. MBB - Drawdown Comparison
The maximum BNDX drawdown since its inception was -16.23%, smaller than the maximum MBB drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for BNDX and MBB.
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Drawdown Indicators
| BNDX | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.23% | -17.64% | +1.41% |
Max Drawdown (1Y)Largest decline over 1 year | -2.93% | -2.94% | +0.01% |
Max Drawdown (3Y)Largest decline over 3 years | -2.93% | -7.68% | +4.75% |
Max Drawdown (5Y)Largest decline over 5 years | -15.86% | -17.19% | +1.33% |
Max Drawdown (10Y)Largest decline over 10 years | -16.23% | -17.64% | +1.41% |
Current DrawdownCurrent decline from peak | -1.18% | -1.09% | -0.09% |
Average DrawdownAverage peak-to-trough decline | -3.10% | -2.35% | -0.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.05% | 0.92% | +0.13% |
Volatility
BNDX vs. MBB - Volatility Comparison
Vanguard Total International Bond ETF (BNDX) and iShares MBS Bond ETF (MBB) have volatilities of 1.50% and 1.57%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BNDX | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.50% | 1.57% | -0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 2.96% | 3.31% | -0.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.47% | 4.47% | -1.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.89% | 6.82% | -1.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.10% | 5.31% | -1.21% |
BNDX vs. MBB - Expense Ratio Comparison
BNDX has a 0.07% expense ratio, which is higher than MBB's 0.06% 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
BNDX vs. MBB - Dividend Comparison
BNDX's dividend yield for the trailing twelve months is around 4.48%, more than MBB's 4.26% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BNDX Vanguard Total International Bond ETF | 4.48% | 4.39% | 4.18% | 4.42% | 1.51% | 3.74% | 1.11% | 3.40% | 3.01% | 2.23% | 1.89% | 1.63% |
MBB iShares MBS Bond ETF | 4.26% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
Frequently Asked Questions
BNDX and MBB have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MBB has higher volatility (1.57%) compared to BNDX (1.50%). In terms of maximum drawdown, BNDX dropped -16.23% vs MBB's -17.64%.
On 10-year performance, BNDX leads with 1.69% vs 1.33% for MBB. On fees, MBB is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BNDX has performed better with a 1.69% return vs 1.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB is cheaper with a 0.06% expense ratio, compared with 0.07% for BNDX.
BNDX has the higher dividend yield at 4.48%, compared with 4.26% for MBB.
BNDX is categorized as Global Bonds, while MBB is Mortgage Backed Securities. BNDX tracks Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged), while MBB tracks Barclays Capital U.S. MBS Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for BNDX and 0.06% for MBB.
MBB currently has the higher Sharpe Ratio (1.46 vs 0.58), 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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