ESGD vs. BND
ESGD (iShares ESG Aware MSCI EAFE ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - ESGD is a Foreign Large Cap Equities fund tracking the MSCI EAFE Extended ESG Focus Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 5 years, ESGD returned 8.05%/yr vs 0.18%/yr for BND. At a 0.11 correlation, their price movements are largely independent. ESGD charges 0.20%/yr vs 0.03%/yr for BND.
Performance
ESGD vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, ESGD achieves a 8.13% return, which is significantly higher than BND's 0.94% return.
ESGD
- 1D
- -0.12%
- 1M
- 0.05%
- YTD
- 8.13%
- 6M
- 7.64%
- 1Y
- 19.32%
- 3Y*
- 16.04%
- 5Y*
- 8.05%
- 10Y*
- —
BND
- 1D
- 0.45%
- 1M
- 1.09%
- YTD
- 0.94%
- 6M
- 0.78%
- 1Y
- 4.38%
- 3Y*
- 4.11%
- 5Y*
- 0.18%
- 10Y*
- 1.60%
ESGD vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ESGD iShares ESG Aware MSCI EAFE ETF | 8.13% | 29.63% | 3.95% | 18.53% | -15.17% | 11.79% | 8.20% | 23.12% | -13.33% | 25.10% |
BND Vanguard Total Bond Market ETF | 0.94% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between ESGD and BND is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Jun 30, 2016 | 0.11 |
Over the past year, ESGD and BND have become more correlated (0.45) than their long-term average of 0.11, meaning their price movements have been converging.
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Return for Risk
ESGD vs. BND — Risk / Return Rank
ESGD
BND
ESGD vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EAFE ETF (ESGD) 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.
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.
| ESGD | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.21 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.66 | 1.64 | +0.02 |
| Martin ratioReturn relative to average drawdown | 6.19 | 4.68 | +1.52 |
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Drawdowns
ESGD vs. BND - Drawdown Comparison
The maximum ESGD drawdown since its inception was -33.70%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for ESGD and BND.
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Drawdown Indicators
| ESGD | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -33.70% | -18.58% | -15.12% |
Max Drawdown (1Y)Largest decline over 1 year | -11.68% | -2.68% | -9.00% |
Max Drawdown (3Y)Largest decline over 3 years | -13.86% | -5.92% | -7.94% |
Max Drawdown (5Y)Largest decline over 5 years | -30.03% | -17.91% | -12.12% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | -2.26% | -1.71% | -0.55% |
Average DrawdownAverage peak-to-trough decline | -6.16% | -3.06% | -3.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.13% | 0.94% | +2.19% |
Volatility
ESGD vs. BND - Volatility Comparison
iShares ESG Aware MSCI EAFE ETF (ESGD) has a higher volatility of 5.48% compared to Vanguard Total Bond Market ETF (BND) at 1.15%. This indicates that ESGD'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.
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Volatility by Period
| ESGD | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.48% | 1.15% | +4.33% |
Volatility (6M)Calculated over the trailing 6-month period | 13.44% | 2.80% | +10.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.85% | 3.75% | +12.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.71% | 6.03% | +10.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.00% | 5.53% | +11.47% |
ESGD vs. BND - Expense Ratio Comparison
ESGD has a 0.20% expense ratio, which is higher than BND's 0.03% 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
ESGD vs. BND - Dividend Comparison
ESGD's dividend yield for the trailing twelve months is around 3.38%, less than BND's 3.94% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.94% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
ESGD iShares ESG Aware MSCI EAFE ETF | 3.38% | 3.60% | 3.23% | 3.02% | 2.59% | 2.75% | 1.63% | 2.57% | 2.69% | 2.65% | 0.09% | 0.00% |
Frequently Asked Questions
ESGD and BND have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ESGD has higher volatility (5.48%) compared to BND (1.15%). In terms of maximum drawdown, ESGD dropped -33.70% vs BND's -18.58%.
On 5-year performance, ESGD leads with 8.05% vs 0.18% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.15%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, ESGD has performed better with a 8.05% return vs 0.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.20% for ESGD.
BND has the higher dividend yield at 3.94%, compared with 3.38% for ESGD.
ESGD is categorized as Foreign Large Cap Equities, while BND is Total Bond Market. ESGD tracks MSCI EAFE Extended ESG Focus Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.20% for ESGD and 0.03% for BND.
ESGD currently has the higher Sharpe Ratio (1.23 vs 1.18), 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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