GOVZ vs. BND
GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - GOVZ is a Government Bonds fund tracking the ICE BofA Long US Treasury Principal STRIPS 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 5 years, GOVZ returned -11.53%/yr vs 0.09%/yr for BND. Their correlation of 0.88 suggests significant overlap in exposure. GOVZ charges 0.15%/yr vs 0.03%/yr for BND.
Performance
GOVZ vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, GOVZ achieves a -0.94% return, which is significantly lower than BND's 0.27% return.
GOVZ
- 1D
- -0.50%
- 1M
- 1.73%
- YTD
- -0.94%
- 6M
- -4.35%
- 1Y
- 3.91%
- 3Y*
- -7.43%
- 5Y*
- -11.53%
- 10Y*
- —
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%
GOVZ vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | -0.94% | -1.81% | -16.24% | 0.90% | -41.03% | -4.86% | -5.61% |
BND Vanguard Total Bond Market ETF | 0.27% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 0.79% |
Correlation
The correlation between GOVZ and BND is 0.86, 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 | 0.86 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Sep 25, 2020 | 0.88 |
The correlation between GOVZ and BND has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.
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Return for Risk
GOVZ vs. BND — Risk / Return Rank
GOVZ
BND
GOVZ vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) 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.
| GOVZ | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.12 | ||
| Sortino ratioReturn per unit of downside risk | -1.56 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.24 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 0.28 | 1.92 | -1.64 |
| Martin ratioReturn relative to average drawdown | 0.63 | 5.80 | -5.17 |
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
| GOVZ | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.24 | 1.36 | -1.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.48 | 0.01 | -0.50 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.29 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.58 | 0.59 | -1.17 |
Drawdowns
GOVZ vs. BND - Drawdown Comparison
The maximum GOVZ drawdown since its inception was -59.65%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for GOVZ and BND.
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Drawdown Indicators
| GOVZ | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.65% | -18.58% | -41.07% |
Max Drawdown (1Y)Largest decline over 1 year | -14.16% | -2.68% | -11.48% |
Max Drawdown (3Y)Largest decline over 3 years | -28.72% | -5.92% | -22.80% |
Max Drawdown (5Y)Largest decline over 5 years | -57.63% | -17.91% | -39.72% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | -56.47% | -2.37% | -54.10% |
Average DrawdownAverage peak-to-trough decline | -39.91% | -3.06% | -36.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.21% | 0.88% | +5.33% |
Volatility
GOVZ vs. BND - Volatility Comparison
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a higher volatility of 4.27% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that GOVZ'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
| GOVZ | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.27% | 1.23% | +3.04% |
Volatility (6M)Calculated over the trailing 6-month period | 10.50% | 2.66% | +7.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.26% | 3.78% | +12.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.93% | 6.02% | +17.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.35% | 5.53% | +17.82% |
GOVZ vs. BND - Expense Ratio Comparison
GOVZ 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
GOVZ vs. BND - Dividend Comparison
GOVZ's dividend yield for the trailing twelve months is around 5.18%, 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% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 5.18% | 5.00% | 4.68% | 3.84% | 3.69% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
GOVZ and BND have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GOVZ has higher volatility (4.27%) compared to BND (1.23%). In terms of maximum drawdown, GOVZ dropped -59.65% vs BND's -18.58%.
On 5-year performance, BND leads with 0.09% vs -11.53% for GOVZ. 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 5-year period, BND has performed better with a 0.09% return vs -11.53%. 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 GOVZ.
GOVZ has the higher dividend yield at 5.18%, compared with 3.97% for BND.
GOVZ is categorized as Government Bonds, while BND is Total Bond Market. GOVZ tracks ICE BofA Long US Treasury Principal STRIPS 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 GOVZ and 0.03% for BND.
BND currently has the higher Sharpe Ratio (1.36 vs 0.24), 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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