BNDX vs. VMBS
BNDX (Vanguard Total International Bond ETF) and VMBS (Vanguard Mortgage-Backed Securities 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 VMBS 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 1.65%/yr vs 1.31%/yr for VMBS. A 0.62 correlation means they provide meaningful diversification when combined. BNDX charges 0.07%/yr vs 0.04%/yr for VMBS.
Performance
BNDX vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, BNDX achieves a 0.37% return, which is significantly higher than VMBS's 0.27% return. Over the past 10 years, BNDX has outperformed VMBS with an annualized return of 1.65%, while VMBS has yielded a comparatively lower 1.31% annualized return.
BNDX
- 1D
- -0.12%
- 1M
- -0.16%
- YTD
- 0.37%
- 6M
- 0.55%
- 1Y
- 1.86%
- 3Y*
- 4.01%
- 5Y*
- 0.25%
- 10Y*
- 1.65%
VMBS
- 1D
- 0.04%
- 1M
- -0.83%
- YTD
- 0.27%
- 6M
- 0.91%
- 1Y
- 6.83%
- 3Y*
- 4.37%
- 5Y*
- 0.40%
- 10Y*
- 1.31%
BNDX vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BNDX Vanguard Total International Bond ETF | 0.37% | 2.86% | 3.57% | 8.77% | -12.76% | -2.29% | 4.65% | 7.87% | 2.81% | 2.40% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.27% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
Correlation
The correlation between BNDX and VMBS 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 | 0.66 |
Correlation (All Time) Calculated using the full available price history since Jun 5, 2013 | 0.62 |
The correlation between BNDX and VMBS shifts across timeframes, from 0.62 (all time) to 0.78 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
BNDX vs. VMBS — Risk / Return Rank
BNDX
VMBS
BNDX vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total International Bond ETF (BNDX) and Vanguard Mortgage-Backed Securities ETF (VMBS). 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.
| BNDX | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.06 | ||
| Sortino ratioReturn per unit of downside risk | -1.59 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.29 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 0.64 | 2.55 | -1.92 |
| Martin ratioReturn relative to average drawdown | 1.79 | 8.40 | -6.61 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BNDX | VMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.54 | 1.60 | -1.06 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.05 | 0.06 | -0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.41 | 0.24 | +0.16 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.60 | 0.45 | +0.15 |
Drawdowns
BNDX vs. VMBS - Drawdown Comparison
The maximum BNDX drawdown since its inception was -16.23%, smaller than the maximum VMBS drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for BNDX and VMBS.
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Drawdown Indicators
| BNDX | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.23% | -17.47% | +1.24% |
Max Drawdown (1Y)Largest decline over 1 year | -2.93% | -2.68% | -0.25% |
Max Drawdown (3Y)Largest decline over 3 years | -2.93% | -7.65% | +4.72% |
Max Drawdown (5Y)Largest decline over 5 years | -15.86% | -17.12% | +1.26% |
Max Drawdown (10Y)Largest decline over 10 years | -16.23% | -17.47% | +1.24% |
Current DrawdownCurrent decline from peak | -1.65% | -1.71% | +0.06% |
Average DrawdownAverage peak-to-trough decline | -3.08% | -2.49% | -0.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.04% | 0.81% | +0.23% |
Volatility
BNDX vs. VMBS - Volatility Comparison
The current volatility for Vanguard Total International Bond ETF (BNDX) is 1.47%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.56%. This indicates that BNDX experiences smaller price fluctuations and is considered to be less risky than VMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BNDX | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.47% | 1.56% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 2.91% | 3.19% | -0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.43% | 4.29% | -0.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.88% | 6.77% | -1.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.09% | 5.40% | -1.31% |
BNDX vs. VMBS - Expense Ratio Comparison
BNDX has a 0.07% expense ratio, which is higher than VMBS's 0.04% 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. VMBS - Dividend Comparison
BNDX's dividend yield for the trailing twelve months is around 4.50%, more than VMBS's 4.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BNDX Vanguard Total International Bond ETF | 4.50% | 4.39% | 4.18% | 4.42% | 1.51% | 3.74% | 1.11% | 3.40% | 3.01% | 2.23% | 1.89% | 1.63% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.20% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
Frequently Asked Questions
BNDX and VMBS 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.
VMBS has higher volatility (1.56%) compared to BNDX (1.47%). In terms of maximum drawdown, BNDX dropped -16.23% vs VMBS's -17.47%.
On 10-year performance, BNDX leads with 1.65% vs 1.31% for VMBS. On fees, VMBS is cheaper at 0.04% 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 1.65% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VMBS is cheaper with a 0.04% expense ratio, compared with 0.07% for BNDX.
BNDX has the higher dividend yield at 4.50%, compared with 4.20% for VMBS.
BNDX is categorized as Global Bonds, while VMBS is Mortgage Backed Securities. BNDX tracks Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged), while VMBS tracks Barclays Capital U.S. MBS Index. Their fees differ too: 0.07% for BNDX and 0.04% for VMBS.
VMBS currently has the higher Sharpe Ratio (1.60 vs 0.54), 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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