IBTM.L vs. BND
Compare and contrast key facts about iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) (IBTM.L) and Vanguard Total Bond Market ETF (BND).
IBTM.L and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IBTM.L is a passively managed fund by iShares that tracks the performance of the Bloomberg US Government TR USD. It was launched on Dec 8, 2006. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both IBTM.L and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IBTM.L or BND.
Key characteristics
| IBTM.L | BND | |
|---|---|---|
| YTD Return | -1.43% | -1.43% |
| 1Y Return | -3.13% | 0.85% |
| 3Y Return (Ann) | -0.38% | -3.00% |
| 5Y Return (Ann) | -0.05% | 0.05% |
| 10Y Return (Ann) | 4.49% | 1.24% |
| Sharpe Ratio | -0.38 | 0.09 |
| Daily Std Dev | 7.76% | 6.54% |
| Max Drawdown | -25.39% | -18.84% |
| Current Drawdown | -22.44% | -11.87% |
Correlation
The correlation between IBTM.L and BND is 0.47, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
IBTM.L vs. BND - Performance Comparison
As of year-to-date, both investments have demonstrated similar returns, with IBTM.L at -1.43% and BND at -1.43%. Over the past 10 years, IBTM.L has outperformed BND with an annualized return of 4.49%, while BND has yielded a comparatively lower 1.24% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IBTM.L vs. BND - Expense Ratio Comparison
IBTM.L has a 0.07% 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%.
Risk-Adjusted Performance
IBTM.L vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) (IBTM.L) 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.
Dividends
IBTM.L vs. BND - Dividend Comparison
IBTM.L's dividend yield for the trailing twelve months is around 3.99%, more than BND's 3.36% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBTM.L iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) | 3.99% | 3.93% | 2.34% | 1.57% | 2.13% | 3.25% | 3.07% | 2.64% | 2.40% | 3.01% | 3.44% | 3.02% |
BND Vanguard Total Bond Market ETF | 3.36% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
IBTM.L vs. BND - Drawdown Comparison
The maximum IBTM.L drawdown since its inception was -25.39%, which is greater than BND's maximum drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for IBTM.L and BND. For additional features, visit the drawdowns tool.
Volatility
IBTM.L vs. BND - Volatility Comparison
iShares USD Treasury Bond 7-10yr UCITS ETF (Dist) (IBTM.L) has a higher volatility of 2.15% compared to Vanguard Total Bond Market ETF (BND) at 1.30%. This indicates that IBTM.L'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.