FALN vs. BNDC
FALN (iShares Fallen Angels USD Bond ETF) and BNDC (FlexShares Core Select Bond Fund) are both exchange-traded funds - FALN is a High Yield Bonds fund tracking the Bloomberg US High Yield Fallen Angel 3% Capped Index, while BNDC is a Intermediate Core Bond fund actively managed by Northern Trust. FALN is passively managed, while BNDC is actively managed. Over the past 5 years, FALN returned 3.46%/yr vs -0.55%/yr for BNDC. At a 0.38 correlation, their price movements are largely independent. FALN charges 0.25%/yr vs 0.35%/yr for BNDC.
Performance
FALN vs. BNDC - Performance Comparison
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Returns By Period
In the year-to-date period, FALN achieves a 2.18% return, which is significantly higher than BNDC's -0.50% return.
FALN
- 1D
- -0.30%
- 1M
- 0.19%
- 6M
- 1.29%
- YTD
- 2.18%
- 1Y
- 6.90%
- 3Y*
- 8.69%
- 5Y*
- 3.46%
- 10Y*
- 6.20%
BNDC
- 1D
- -0.31%
- 1M
- -0.64%
- 6M
- -1.40%
- YTD
- -0.50%
- 1Y
- 3.17%
- 3Y*
- 3.56%
- 5Y*
- -0.55%
- 10Y*
- —
FALN vs. BNDC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 2.18% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
BNDC FlexShares Core Select Bond Fund | -0.50% | 7.29% | 0.86% | 5.36% | -13.54% | -2.01% | 8.66% | 9.57% | -1.49% | 3.97% |
Correlation
The correlation between FALN and BNDC is 0.61, 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 | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.63 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Nov 21, 2016 | 0.38 |
Over the past year, FALN and BNDC have become more correlated (0.61) than their long-term average of 0.38, meaning their price movements have been converging.
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Return for Risk
FALN vs. BNDC — Risk / Return Rank
FALN
BNDC
FALN vs. BNDC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) and FlexShares Core Select Bond Fund (BNDC). 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.
| FALN | BNDC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.68 | ||
| Sortino ratioReturn per unit of downside risk | +0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.15 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 1.11 | +0.64 |
| Martin ratioReturn relative to average drawdown | 7.30 | 2.92 | +4.37 |
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Drawdowns
FALN vs. BNDC - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, which is greater than BNDC's maximum drawdown of -18.80%. Use the drawdown chart below to compare losses from any high point for FALN and BNDC.
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Drawdown Indicators
| FALN | BNDC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.22% | -18.80% | -10.42% |
Max Drawdown (1Y)Largest decline over 1 year | -3.96% | -2.87% | -1.09% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -6.30% | +0.38% |
Max Drawdown (5Y)Largest decline over 5 years | -18.78% | -18.60% | -0.18% |
Max Drawdown (10Y)Largest decline over 10 years | -29.22% | — | — |
Current DrawdownCurrent decline from peak | -0.75% | -3.89% | +3.14% |
Average DrawdownAverage peak-to-trough decline | -3.29% | -7.31% | +4.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.95% | 1.09% | -0.14% |
Volatility
FALN vs. BNDC - Volatility Comparison
The current volatility for iShares Fallen Angels USD Bond ETF (FALN) is 1.03%, while FlexShares Core Select Bond Fund (BNDC) has a volatility of 1.09%. This indicates that FALN experiences smaller price fluctuations and is considered to be less risky than BNDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FALN | BNDC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.03% | 1.09% | -0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 3.74% | 2.88% | +0.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.57% | 3.80% | +0.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.33% | 6.08% | +1.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.86% | 8.02% | +0.84% |
FALN vs. BNDC - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is lower than BNDC's 0.35% expense ratio.
Dividends
FALN vs. BNDC - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 6.49%, more than BNDC's 4.18% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
BNDC FlexShares Core Select Bond Fund | 4.18% | 4.16% | 3.81% | 3.19% | 2.64% | 1.72% | 2.61% | 2.89% | 2.86% | 2.50% | 0.64% |
FALN iShares Fallen Angels USD Bond ETF | 6.49% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% |
Frequently Asked Questions
FALN and BNDC have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BNDC has higher volatility (1.09%) compared to FALN (1.03%). In terms of maximum drawdown, FALN dropped -29.22% vs BNDC's -18.80%.
On 5-year performance, FALN leads with 3.46% vs -0.55% for BNDC. On fees, FALN is cheaper at 0.25% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FALN has performed better with a 3.46% return vs -0.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FALN is cheaper with a 0.25% expense ratio, compared with 0.35% for BNDC.
FALN has the higher dividend yield at 6.49%, compared with 4.18% for BNDC.
FALN is categorized as High Yield Bonds, while BNDC is Intermediate Core Bond. They also come from different issuers: iShares and Northern Trust. Their fees differ too: 0.25% for FALN and 0.35% for BNDC.
FALN currently has the higher Sharpe Ratio (1.52 vs 0.84), 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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