GNMA vs. BND
GNMA (iShares GNMA Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - GNMA is a Mortgage Backed Securities fund tracking the Barclays Capital GNMA 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 10 years, GNMA returned 1.23%/yr vs 1.58%/yr for BND. A 0.65 correlation means they provide meaningful diversification when combined. GNMA charges 0.15%/yr vs 0.03%/yr for BND.
Performance
GNMA vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, GNMA achieves a 0.56% return, which is significantly higher than BND's 0.27% return. Over the past 10 years, GNMA has underperformed BND with an annualized return of 1.23%, while BND has yielded a comparatively higher 1.58% annualized return.
GNMA
- 1D
- -0.19%
- 1M
- -0.07%
- YTD
- 0.56%
- 6M
- 0.81%
- 1Y
- 6.56%
- 3Y*
- 4.20%
- 5Y*
- 0.53%
- 10Y*
- 1.23%
BND
- 1D
- -0.19%
- 1M
- 0.27%
- YTD
- 0.27%
- 6M
- 0.12%
- 1Y
- 5.11%
- 3Y*
- 3.96%
- 5Y*
- 0.09%
- 10Y*
- 1.58%
GNMA vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GNMA iShares GNMA Bond ETF | 0.56% | 8.25% | 1.07% | 5.34% | -10.83% | -1.86% | 3.51% | 5.85% | 0.85% | 1.74% |
BND Vanguard Total Bond Market ETF | 0.27% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between GNMA and BND is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.82 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.89 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.75 |
Correlation (All Time) Calculated using the full available price history since Feb 22, 2012 | 0.65 |
The correlation between GNMA and BND shifts across timeframes, from 0.65 (all time) to 0.90 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
GNMA vs. BND — Risk / Return Rank
GNMA
BND
GNMA vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares GNMA Bond ETF (GNMA) 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.
| GNMA | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.18 | ||
| Sortino ratioReturn per unit of downside risk | +0.32 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.24 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 1.92 | +0.61 |
| Martin ratioReturn relative to average drawdown | 8.05 | 5.80 | +2.25 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| GNMA | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.53 | 1.36 | +0.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.08 | 0.01 | +0.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.24 | 0.29 | -0.05 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.59 | -0.34 |
Drawdowns
GNMA vs. BND - Drawdown Comparison
The maximum GNMA drawdown since its inception was -17.09%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for GNMA and BND.
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Drawdown Indicators
| GNMA | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.09% | -18.58% | +1.49% |
Max Drawdown (1Y)Largest decline over 1 year | -2.61% | -2.68% | +0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -7.13% | -5.92% | -1.21% |
Max Drawdown (5Y)Largest decline over 5 years | -15.83% | -17.91% | +2.08% |
Max Drawdown (10Y)Largest decline over 10 years | -17.09% | -18.58% | +1.49% |
Current DrawdownCurrent decline from peak | -1.41% | -2.37% | +0.96% |
Average DrawdownAverage peak-to-trough decline | -3.66% | -3.06% | -0.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 0.88% | -0.06% |
Volatility
GNMA vs. BND - Volatility Comparison
iShares GNMA Bond ETF (GNMA) has a higher volatility of 1.54% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that GNMA'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
| GNMA | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 1.23% | +0.31% |
Volatility (6M)Calculated over the trailing 6-month period | 3.14% | 2.66% | +0.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.30% | 3.78% | +0.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.61% | 6.02% | +0.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.13% | 5.53% | -0.40% |
GNMA vs. BND - Expense Ratio Comparison
GNMA has a 0.15% 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
GNMA vs. BND - Dividend Comparison
GNMA's dividend yield for the trailing twelve months is around 4.24%, more than BND's 3.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.97% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
GNMA iShares GNMA Bond ETF | 4.24% | 4.19% | 4.15% | 3.43% | 2.01% | 0.64% | 1.89% | 2.61% | 2.41% | 2.15% | 1.89% | 1.50% |
Frequently Asked Questions
GNMA and BND have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GNMA has higher volatility (1.54%) compared to BND (1.23%). In terms of maximum drawdown, GNMA dropped -17.09% vs BND's -18.58%.
On 10-year performance, BND leads with 1.58% vs 1.23% for GNMA. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BND has performed better with a 1.58% return vs 1.23%. 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 0.15% for GNMA.
GNMA has the higher dividend yield at 4.24%, compared with 3.97% for BND.
GNMA is categorized as Mortgage Backed Securities, while BND is Total Bond Market. GNMA tracks Barclays Capital GNMA Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for GNMA and 0.03% for BND.
GNMA currently has the higher Sharpe Ratio (1.53 vs 1.36), 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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