IGOV vs. BNDW
IGOV (iShares International Treasury Bond ETF) and BNDW (Vanguard Total World Bond ETF) are both exchange-traded funds - IGOV is a International Government Bonds fund tracking the FTSE World Government Bond Index - Developed Markets Capped Select Index, while BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index. Both are passively managed. Over the past 5 years, IGOV returned -4.43%/yr vs 0.27%/yr for BNDW. A 0.64 correlation means they provide meaningful diversification when combined. IGOV charges 0.35%/yr vs 0.05%/yr for BNDW.
Performance
IGOV vs. BNDW - Performance Comparison
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Returns By Period
In the year-to-date period, IGOV achieves a -1.80% return, which is significantly lower than BNDW's 0.88% return.
IGOV
- 1D
- -0.27%
- 1M
- -1.26%
- YTD
- -1.80%
- 6M
- -2.15%
- 1Y
- -2.13%
- 3Y*
- 1.73%
- 5Y*
- -4.43%
- 10Y*
- -1.49%
BNDW
- 1D
- 0.15%
- 1M
- 0.77%
- YTD
- 0.88%
- 6M
- 0.88%
- 1Y
- 3.23%
- 3Y*
- 4.10%
- 5Y*
- 0.27%
- 10Y*
- —
IGOV vs. BNDW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
IGOV iShares International Treasury Bond ETF | -1.80% | 9.96% | -6.50% | 5.57% | -22.07% | -9.25% | 10.88% | 3.76% | 0.17% |
BNDW Vanguard Total World Bond ETF | 0.88% | 5.02% | 2.42% | 7.18% | -12.88% | -2.10% | 6.22% | 8.37% | 1.27% |
Correlation
The correlation between IGOV and BNDW is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.72 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Sep 6, 2018 | 0.64 |
The correlation between IGOV and BNDW has been stable across timeframes, ranging from 0.64 to 0.72 - a consistent structural relationship.
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Return for Risk
IGOV vs. BNDW — Risk / Return Rank
IGOV
BNDW
IGOV vs. BNDW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares International Treasury Bond ETF (IGOV) and Vanguard Total World Bond ETF (BNDW). 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.
| IGOV | BNDW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.23 | ||
| Sortino ratioReturn per unit of downside risk | -1.72 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.17 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | -0.38 | 1.20 | -1.58 |
| Martin ratioReturn relative to average drawdown | -0.83 | 3.24 | -4.07 |
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Drawdowns
IGOV vs. BNDW - Drawdown Comparison
The maximum IGOV drawdown since its inception was -35.88%, which is greater than BNDW's maximum drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for IGOV and BNDW.
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Drawdown Indicators
| IGOV | BNDW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.88% | -17.22% | -18.66% |
Max Drawdown (1Y)Largest decline over 1 year | -5.70% | -2.70% | -3.00% |
Max Drawdown (3Y)Largest decline over 3 years | -10.65% | -4.27% | -6.38% |
Max Drawdown (5Y)Largest decline over 5 years | -32.92% | -16.93% | -15.99% |
Max Drawdown (10Y)Largest decline over 10 years | -35.88% | — | — |
Current DrawdownCurrent decline from peak | -25.00% | -1.08% | -23.92% |
Average DrawdownAverage peak-to-trough decline | -11.05% | -4.95% | -6.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.58% | 1.00% | +1.58% |
Volatility
IGOV vs. BNDW - Volatility Comparison
iShares International Treasury Bond ETF (IGOV) has a higher volatility of 2.29% compared to Vanguard Total World Bond ETF (BNDW) at 0.92%. This indicates that IGOV's price experiences larger fluctuations and is considered to be riskier than BNDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IGOV | BNDW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.29% | 0.92% | +1.37% |
Volatility (6M)Calculated over the trailing 6-month period | 6.37% | 2.70% | +3.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.13% | 3.35% | +4.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.97% | 5.22% | +4.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.60% | 4.89% | +3.71% |
IGOV vs. BNDW - Expense Ratio Comparison
IGOV has a 0.35% expense ratio, which is higher than BNDW's 0.05% expense ratio.
Dividends
IGOV vs. BNDW - Dividend Comparison
IGOV's dividend yield for the trailing twelve months is around 1.43%, less than BNDW's 4.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BNDW Vanguard Total World Bond ETF | 4.19% | 4.12% | 3.90% | 3.73% | 2.02% | 2.58% | 1.56% | 3.05% | 1.66% | 0.00% | 0.00% | 0.00% |
IGOV iShares International Treasury Bond ETF | 1.43% | 1.41% | 0.59% | 0.00% | 0.11% | 0.39% | 0.00% | 0.24% | 0.31% | 0.19% | 0.69% | 0.12% |
Frequently Asked Questions
IGOV and BNDW have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IGOV has higher volatility (2.29%) compared to BNDW (0.92%). In terms of maximum drawdown, IGOV dropped -35.88% vs BNDW's -17.22%.
On 5-year performance, BNDW leads with 0.27% vs -4.43% for IGOV. On fees, BNDW is cheaper at 0.05% per year. On volatility, BNDW has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, BNDW has performed better with a 0.27% return vs -4.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BNDW is cheaper with a 0.05% expense ratio, compared with 0.35% for IGOV.
BNDW has the higher dividend yield at 4.19%, compared with 1.43% for IGOV.
IGOV is categorized as International Government Bonds, while BNDW is Global Bonds. IGOV tracks FTSE World Government Bond Index - Developed Markets Capped Select Index, while BNDW tracks Bloomberg Global Aggregate Float Adjusted Composite Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.35% for IGOV and 0.05% for BNDW.
BNDW currently has the higher Sharpe Ratio (0.97 vs -0.26), 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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