GOVT vs. BND
GOVT (iShares U.S. Treasury Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond 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, GOVT returned 0.90%/yr vs 1.61%/yr for BND. Their correlation of 0.91 suggests significant overlap in exposure. GOVT charges 0.05%/yr vs 0.03%/yr for BND.
Performance
GOVT vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, GOVT achieves a 0.02% return, which is significantly lower than BND's 0.41% return. Over the past 10 years, GOVT has underperformed BND with an annualized return of 0.90%, while BND has yielded a comparatively higher 1.61% annualized return.
GOVT
- 1D
- 0.13%
- 1M
- 0.14%
- YTD
- 0.02%
- 6M
- 0.01%
- 1Y
- 3.37%
- 3Y*
- 2.88%
- 5Y*
- -0.43%
- 10Y*
- 0.90%
BND
- 1D
- 0.14%
- 1M
- 0.23%
- YTD
- 0.41%
- 6M
- 0.44%
- 1Y
- 4.60%
- 3Y*
- 4.01%
- 5Y*
- 0.11%
- 10Y*
- 1.61%
GOVT vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 0.02% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
BND Vanguard Total Bond Market ETF | 0.41% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between GOVT and BND is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012 | 0.91 |
The correlation between GOVT and BND has been stable across timeframes, ranging from 0.91 to 0.97 - a consistent structural relationship.
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Return for Risk
GOVT vs. BND — Risk / Return Rank
GOVT
BND
GOVT vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) 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.
| GOVT | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.29 | ||
| Sortino ratioReturn per unit of downside risk | -0.42 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.22 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.19 | 1.73 | -0.54 |
| Martin ratioReturn relative to average drawdown | 3.47 | 5.21 | -1.74 |
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
| GOVT | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.95 | 1.24 | -0.29 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.07 | 0.02 | -0.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.17 | 0.29 | -0.12 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | 0.59 | -0.33 |
Drawdowns
GOVT vs. BND - Drawdown Comparison
The maximum GOVT drawdown since its inception was -19.07%, roughly equal to the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for GOVT and BND.
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Drawdown Indicators
| GOVT | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.07% | -18.58% | -0.49% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -2.68% | -0.17% |
Max Drawdown (3Y)Largest decline over 3 years | -5.43% | -5.92% | +0.49% |
Max Drawdown (5Y)Largest decline over 5 years | -16.60% | -17.91% | +1.31% |
Max Drawdown (10Y)Largest decline over 10 years | -19.07% | -18.58% | -0.49% |
Current DrawdownCurrent decline from peak | -7.05% | -2.23% | -4.82% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -3.06% | -2.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.97% | 0.89% | +0.08% |
Volatility
GOVT vs. BND - Volatility Comparison
The current volatility for iShares U.S. Treasury Bond ETF (GOVT) is 1.10%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.22%. This indicates that GOVT experiences smaller price fluctuations and is considered to be less risky 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
| GOVT | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.10% | 1.22% | -0.12% |
Volatility (6M)Calculated over the trailing 6-month period | 2.52% | 2.66% | -0.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.63% | 3.78% | -0.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.04% | 6.02% | +0.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.22% | 5.53% | -0.31% |
GOVT vs. BND - Expense Ratio Comparison
GOVT has a 0.05% 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
GOVT vs. BND - Dividend Comparison
GOVT's dividend yield for the trailing twelve months is around 3.58%, less 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% |
GOVT iShares U.S. Treasury Bond ETF | 3.58% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
Frequently Asked Questions
With a correlation of 0.97, GOVT and BND move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
BND has higher volatility (1.22%) compared to GOVT (1.10%). In terms of maximum drawdown, GOVT dropped -19.07% vs BND's -18.58%.
On 10-year performance, BND leads with 1.61% vs 0.90% for GOVT. On fees, BND is cheaper at 0.03% per year. On volatility, GOVT has been the lower-risk option at 1.10%. 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 1.61% return vs 0.90%. 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 0.05% for GOVT.
BND has the higher dividend yield at 3.96%, compared with 3.58% for GOVT.
GOVT is categorized as Government Bonds, while BND is Total Bond Market. GOVT tracks ICE U.S. Treasury Core Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.05% for GOVT and 0.03% for BND.
BND currently has the higher Sharpe Ratio (1.24 vs 0.95), 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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