BTI vs. BND

Last updated Jun 6, 2026

BTI (British American Tobacco p.l.c.) is a stock, while BND (Vanguard Total Bond Market ETF) is Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 10 years, BTI returned 6.49%/yr vs 1.56%/yr for BND. At a correlation of -0.05, they often move in opposite directions.

Performance

BTI vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in British American Tobacco p.l.c. (BTI) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BTI achieves a 7.01% return, which is significantly higher than BND's -0.05% return. Over the past 10 years, BTI has outperformed BND with an annualized return of 6.49%, while BND has yielded a comparatively lower 1.56% annualized return.

BTI

• 1D: 3.23%
• 1M: 0.27%
• YTD: 7.01%
• 6M: 7.69%
• 1Y: 33.37%
• 3Y*: 32.36%
• 5Y*: 17.58%
• 10Y*: 6.49%

BND

• 1D: -0.45%
• 1M: -0.64%
• YTD: -0.05%
• 6M: 0.11%
• 1Y: 4.33%
• 3Y*: 3.80%
• 5Y*: 0.02%
• 10Y*: 1.56%

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

BTI vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BTI British American Tobacco p.l.c.	7.01%	65.81%	35.44%	-19.97%	14.91%	7.95%	-4.73%	42.97%	-49.35%	24.40%
BND Vanguard Total Bond Market ETF	-0.05%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%

Correlation

The correlation between BTI and BND is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (5Y) Calculated over the trailing 5-year period	0.10
Correlation (10Y) Calculated over the trailing 10-year period	0.06
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007	-0.05

The correlation between BTI and BND shifts across timeframes, from -0.05 (all time) to 0.20 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

BTI vs. BND — Risk / Return Rank

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

BTI

BTI Risk / Return Rank: 77
BTI Sharpe Ratio Rank: 81
BTI Sortino Ratio Rank: 76
BTI Omega Ratio Rank: 73
BTI Calmar Ratio Rank: 78
BTI Martin Ratio Rank: 77

BND

BND Risk / Return Rank: 33
BND Sharpe Ratio Rank: 33
BND Sortino Ratio Rank: 33
BND Omega Ratio Rank: 30
BND Calmar Ratio Rank: 34
BND Martin Ratio Rank: 33

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.

BTI vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for British American Tobacco p.l.c. (BTI) and Vanguard Total Bond Market ETF (BND). 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.

	BTI	BND	Difference
Sharpe ratio: Return per unit of total volatility	1.47	1.16	+0.31
Sortino ratio: Return per unit of downside risk	2.09	1.71	+0.38
Omega ratio: Gain probability vs. loss probability	1.25	1.20	+0.05
Calmar ratio: Return relative to maximum drawdown	2.44	1.62	+0.81
Martin ratio: Return relative to average drawdown	5.60	4.86	+0.73
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BTI vs. BND - Sharpe Ratio Comparison

The current BTI Sharpe Ratio is 1.47, which is comparable to the BND Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of BTI and BND, 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

	BTI	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.47	1.16	+0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.00	+0.83
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.28	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.58	0.00

Drawdowns

BTI vs. BND - Drawdown Comparison

The maximum BTI drawdown since its inception was -64.11%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for BTI and BND.

Drawdown Indicators

	BTI	BND	Difference
Max Drawdown Largest peak-to-trough decline	-64.11%	-18.58%	-45.53%
Max Drawdown (1Y) Largest decline over 1 year	-13.75%	-2.68%	-11.07%
Max Drawdown (3Y) Largest decline over 3 years	-13.75%	-5.92%	-7.83%
Max Drawdown (5Y) Largest decline over 5 years	-29.94%	-17.91%	-12.03%
Max Drawdown (10Y) Largest decline over 10 years	-56.00%	-18.58%	-37.42%
Current Drawdown Current decline from peak	-10.46%	-2.67%	-7.79%
Average Drawdown Average peak-to-trough decline	-12.93%	-3.06%	-9.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.97%	0.89%	+5.08%

Volatility

BTI vs. BND - Volatility Comparison

British American Tobacco p.l.c. (BTI) has a higher volatility of 10.35% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that BTI's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BTI	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.35%	1.23%	+9.12%
Volatility (6M) Calculated over the trailing 6-month period	18.52%	2.70%	+15.82%
Volatility (1Y) Calculated over the trailing 1-year period	22.98%	3.76%	+19.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.17%	6.02%	+15.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.21%	5.53%	+18.68%

Dividends

BTI vs. BND - Dividend Comparison

BTI's dividend yield for the trailing twelve months is around 5.16%, more than BND's 3.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.98%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
BTI British American Tobacco p.l.c.	5.16%	5.29%	8.18%	9.72%	7.23%	7.98%	7.22%	6.35%	8.53%	4.27%	3.85%	4.11%

Frequently Asked Questions

Can I hold both BTI and BND in my portfolio?

BTI and BND have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BTI or BND?

BTI has higher volatility (10.35%) compared to BND (1.23%). In terms of maximum drawdown, BTI dropped -64.11% vs BND's -18.58%.

Which has better risk-adjusted returns?

BTI currently has the higher Sharpe Ratio (1.47 vs 1.16), 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.