FXED vs. BND

Last updated Jun 24, 2026

FXED (Sound Enhanced Fixed Income ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - FXED is a Diversified Portfolio fund actively managed by Sound Income Strategies, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. FXED is actively managed, while BND is passively managed. Over the past 5 years, FXED returned 2.31%/yr vs 0.05%/yr for BND. At a 0.31 correlation, their price movements are largely independent. FXED charges 2.33%/yr vs 0.03%/yr for BND.

Performance

FXED vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sound Enhanced Fixed Income ETF (FXED) 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, FXED achieves a -0.29% return, which is significantly lower than BND's 0.49% return.

FXED

• 1D: 0.00%
• 1M: 0.11%
• YTD: -0.29%
• 6M: 0.53%
• 1Y: 4.06%
• 3Y*: 6.90%
• 5Y*: 2.31%
• 10Y*: —

BND

• 1D: 0.11%
• 1M: 0.64%
• YTD: 0.49%
• 6M: 0.57%
• 1Y: 4.23%
• 3Y*: 3.96%
• 5Y*: 0.05%
• 10Y*: 1.56%

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

FXED vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FXED Sound Enhanced Fixed Income ETF	-0.29%	5.77%	5.18%	15.09%	-14.68%	9.75%	-0.17%
BND Vanguard Total Bond Market ETF	0.49%	7.08%	1.38%	5.65%	-13.11%	-1.86%	0.14%

Correlation

The correlation between FXED and BND is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (All Time) Calculated using the full available price history since Dec 31, 2020	0.31

Return for Risk

FXED vs. BND — Risk / Return Rank

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

FXED

FXED Risk / Return Rank: 18
FXED Sharpe Ratio Rank: 19
FXED Sortino Ratio Rank: 17
FXED Omega Ratio Rank: 16
FXED Calmar Ratio Rank: 18
FXED Martin Ratio Rank: 19

BND

BND Risk / Return Rank: 32
BND Sharpe Ratio Rank: 32
BND Sortino Ratio Rank: 33
BND Omega Ratio Rank: 30
BND Calmar Ratio Rank: 33
BND Martin Ratio Rank: 32

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.

FXED vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sound Enhanced Fixed Income ETF (FXED) 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.

	FXED	BND	Difference
Sharpe ratio: Return per unit of total volatility	0.60	1.14	-0.54
Sortino ratio: Return per unit of downside risk	0.89	1.70	-0.81
Omega ratio: Gain probability vs. loss probability	1.11	1.20	-0.09
Calmar ratio: Return relative to maximum drawdown	0.76	1.59	-0.83
Martin ratio: Return relative to average drawdown	2.01	4.52	-2.51

FXED vs. BND - Sharpe Ratio Comparison

The current FXED Sharpe Ratio is 0.60, which is lower than the BND Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of FXED 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.

Drawdowns

FXED vs. BND - Drawdown Comparison

The maximum FXED drawdown since its inception was -19.70%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for FXED and BND.

Drawdown Indicators

	FXED	BND	Difference
Max Drawdown Largest peak-to-trough decline	-19.70%	-18.58%	-1.12%
Max Drawdown (1Y) Largest decline over 1 year	-5.36%	-2.68%	-2.68%
Max Drawdown (3Y) Largest decline over 3 years	-8.96%	-5.92%	-3.04%
Max Drawdown (5Y) Largest decline over 5 years	-19.70%	-17.91%	-1.79%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.58%	—
Current Drawdown Current decline from peak	-2.14%	-2.15%	+0.01%
Average Drawdown Average peak-to-trough decline	-4.75%	-3.06%	-1.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.02%	0.94%	+1.08%

Volatility

FXED vs. BND - Volatility Comparison

Sound Enhanced Fixed Income ETF (FXED) has a higher volatility of 1.69% compared to Vanguard Total Bond Market ETF (BND) at 1.08%. This indicates that FXED'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

	FXED	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.69%	1.08%	+0.61%
Volatility (6M) Calculated over the trailing 6-month period	5.30%	2.77%	+2.53%
Volatility (1Y) Calculated over the trailing 1-year period	6.81%	3.74%	+3.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.76%	6.03%	+2.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.56%	5.53%	+3.03%

FXED vs. BND - Expense Ratio Comparison

FXED has a 2.33% expense ratio, which is higher than BND's 0.03% expense ratio.

Dividends

FXED vs. BND - Dividend Comparison

FXED's dividend yield for the trailing twelve months is around 7.15%, more than BND's 3.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.96%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
FXED Sound Enhanced Fixed Income ETF	7.15%	6.96%	6.70%	5.65%	5.94%	4.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FXED and BND in my portfolio?

FXED and BND have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXED or BND?

FXED has higher volatility (1.69%) compared to BND (1.08%). In terms of maximum drawdown, FXED dropped -19.70% vs BND's -18.58%.

Which ETF is better, FXED or BND?

On 5-year performance, FXED leads with 2.31% vs 0.05% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXED or BND?

Over the 5-year period, FXED has performed better with a 2.31% return vs 0.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXED or BND?

BND is cheaper with a 0.03% expense ratio, compared with 2.33% for FXED.

Which ETF pays a higher dividend yield, FXED or BND?

FXED has the higher dividend yield at 7.15%, compared with 3.96% for BND.

What is the main difference between FXED and BND?

FXED is categorized as Diversified Portfolio, while BND is Total Bond Market. They also come from different issuers: Sound Income Strategies and Vanguard. Their fees differ too: 2.33% for FXED and 0.03% for BND.

Which has better risk-adjusted returns?

BND currently has the higher Sharpe Ratio (1.14 vs 0.60), 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.