FLGV vs. BNDD

Last updated Jun 4, 2026

FLGV (Franklin Liberty U.S. Treasury Bond ETF) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. Both are actively managed. Over the past 3 years, FLGV returned 2.91%/yr vs -3.91%/yr for BNDD. A 0.55 correlation means they provide meaningful diversification when combined. FLGV charges 0.09%/yr vs 1.02%/yr for BNDD.

Performance

FLGV vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty U.S. Treasury Bond ETF (FLGV) and Quadratic Deflation ETF (BNDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLGV achieves a 0.06% return, which is significantly lower than BNDD's 4.32% return.

FLGV

• 1D: -0.17%
• 1M: 0.12%
• YTD: 0.06%
• 6M: -0.23%
• 1Y: 3.99%
• 3Y*: 2.91%
• 5Y*: -0.17%
• 10Y*: —

BNDD

• 1D: -0.08%
• 1M: 1.37%
• YTD: 4.32%
• 6M: 2.24%
• 1Y: 3.39%
• 3Y*: -3.91%
• 5Y*: —
• 10Y*: —

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

FLGV vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FLGV Franklin Liberty U.S. Treasury Bond ETF	0.06%	6.22%	0.62%	4.18%	-11.53%	-1.10%
BNDD Quadratic Deflation ETF	4.32%	-8.17%	-6.65%	4.02%	-17.48%	5.54%

Correlation

The correlation between FLGV and BNDD 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	0.51
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	0.55

The correlation between FLGV and BNDD shifts across timeframes, from 0.45 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.

FLGV vs. BNDD - Sectors Allocation Comparison

Sectors	FLGV	BNDD
Communication Services	0.9%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	77.7%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

FLGV vs. BNDD — Risk / Return Rank

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

FLGV

FLGV Risk / Return Rank: 29
FLGV Sharpe Ratio Rank: 30
FLGV Sortino Ratio Rank: 29
FLGV Omega Ratio Rank: 28
FLGV Calmar Ratio Rank: 29
FLGV Martin Ratio Rank: 29

BNDD

BNDD Risk / Return Rank: 14
BNDD Sharpe Ratio Rank: 13
BNDD Sortino Ratio Rank: 12
BNDD Omega Ratio Rank: 12
BNDD Calmar Ratio Rank: 16
BNDD Martin Ratio Rank: 15

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.

FLGV vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty U.S. Treasury Bond ETF (FLGV) and Quadratic Deflation ETF (BNDD). 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.

	FLGV	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	1.07	0.32	+0.75
Sortino ratio: Return per unit of downside risk	1.63	0.52	+1.10
Omega ratio: Gain probability vs. loss probability	1.19	1.06	+0.12
Calmar ratio: Return relative to maximum drawdown	1.42	0.56	+0.86
Martin ratio: Return relative to average drawdown	4.20	1.20	+3.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLGV vs. BNDD - Sharpe Ratio Comparison

The current FLGV Sharpe Ratio is 1.07, which is higher than the BNDD Sharpe Ratio of 0.32. The chart below compares the historical Sharpe Ratios of FLGV and BNDD, 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

	FLGV	BNDD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.07	0.32	+0.75
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.13	-0.33	+0.19

Drawdowns

FLGV vs. BNDD - Drawdown Comparison

The maximum FLGV drawdown since its inception was -17.63%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for FLGV and BNDD.

Drawdown Indicators

	FLGV	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-17.63%	-30.87%	+13.24%
Max Drawdown (1Y) Largest decline over 1 year	-2.82%	-6.09%	+3.27%
Max Drawdown (3Y) Largest decline over 3 years	-5.23%	-20.75%	+15.52%
Max Drawdown (5Y) Largest decline over 5 years	-15.26%	—	—
Current Drawdown Current decline from peak	-5.54%	-26.51%	+20.97%
Average Drawdown Average peak-to-trough decline	-8.73%	-19.34%	+10.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	2.83%	-1.88%

Volatility

FLGV vs. BNDD - Volatility Comparison

The current volatility for Franklin Liberty U.S. Treasury Bond ETF (FLGV) is 1.20%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.21%. This indicates that FLGV experiences smaller price fluctuations and is considered to be less risky than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLGV	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.20%	2.21%	-1.01%
Volatility (6M) Calculated over the trailing 6-month period	2.49%	8.11%	-5.62%
Volatility (1Y) Calculated over the trailing 1-year period	3.73%	10.59%	-6.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.43%	13.38%	-7.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.15%	13.38%	-8.23%

FLGV vs. BNDD - Expense Ratio Comparison

FLGV has a 0.09% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

FLGV vs. BNDD - Dividend Comparison

FLGV's dividend yield for the trailing twelve months is around 4.15%, more than BNDD's 3.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
BNDD Quadratic Deflation ETF	3.61%	3.82%	3.85%	4.30%	43.17%	1.04%	0.00%
FLGV Franklin Liberty U.S. Treasury Bond ETF	4.15%	4.07%	4.13%	3.46%	2.21%	1.92%	0.97%

Frequently Asked Questions

Can I hold both FLGV and BNDD in my portfolio?

FLGV and BNDD 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.

Which is riskier, FLGV or BNDD?

BNDD has higher volatility (2.21%) compared to FLGV (1.20%). In terms of maximum drawdown, FLGV dropped -17.63% vs BNDD's -30.87%.

Which ETF is better, FLGV or BNDD?

On 3-year performance, FLGV leads with 2.91% vs -3.91% for BNDD. On fees, FLGV is cheaper at 0.09% per year. On volatility, FLGV has been the lower-risk option at 1.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLGV or BNDD?

Over the 3-year period, FLGV has performed better with a 2.91% return vs -3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLGV or BNDD?

FLGV is cheaper with a 0.09% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, FLGV or BNDD?

FLGV has the higher dividend yield at 4.15%, compared with 3.61% for BNDD.

What is the main difference between FLGV and BNDD?

They also come from different issuers: Franklin Templeton and KraneShares. Their fees differ too: 0.09% for FLGV and 1.02% for BNDD.

Which has better risk-adjusted returns?

FLGV currently has the higher Sharpe Ratio (1.07 vs 0.32), 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.