KHYB vs. BNDD

Last updated Jun 4, 2026

KHYB (KraneShares Asia Pacific High Income Bond ETF) and BNDD (Quadratic Deflation ETF) are both exchange-traded funds - KHYB is a Emerging Markets Bonds fund tracking the JP Morgan Asia Credit Index Non-Investment Grade Corporate Index., while BNDD is a Government Bonds fund actively managed by KraneShares. KHYB is passively managed, while BNDD is actively managed. Over the past 3 years, KHYB returned 9.02%/yr vs -3.91%/yr for BNDD. At a 0.07 correlation, their price movements are largely independent. KHYB charges 0.69%/yr vs 1.02%/yr for BNDD.

Performance

KHYB vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares Asia Pacific High Income Bond ETF (KHYB) and Quadratic Deflation ETF (BNDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KHYB achieves a 2.50% return, which is significantly lower than BNDD's 4.32% return.

KHYB

• 1D: -0.04%
• 1M: 1.41%
• YTD: 2.50%
• 6M: 3.54%
• 1Y: 10.54%
• 3Y*: 9.02%
• 5Y*: 0.17%
• 10Y*: —

BNDD

• 1D: -0.08%
• 1M: 1.37%
• YTD: 4.32%
• 6M: 2.24%
• 1Y: 3.39%
• 3Y*: -3.91%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

KHYB vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
KHYB KraneShares Asia Pacific High Income Bond ETF	2.50%	9.59%	10.79%	3.50%	-10.15%	-9.24%
BNDD Quadratic Deflation ETF	4.32%	-8.17%	-6.65%	4.02%	-17.48%	5.54%

Correlation

The correlation between KHYB and BNDD is 0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.02
Correlation (3Y) Calculated over the trailing 3-year period	0.05
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	0.07

KHYB vs. BNDD - Sectors Allocation Comparison

Sectors	KHYB	BNDD
Consumer Defensive	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Energy	-	-
Financial Services	-	77.7%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

KHYB vs. BNDD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

KHYB

KHYB Risk / Return Rank: 79
KHYB Sharpe Ratio Rank: 90
KHYB Sortino Ratio Rank: 93
KHYB Omega Ratio Rank: 94
KHYB Calmar Ratio Rank: 54
KHYB Martin Ratio Rank: 66

BNDD

BNDD Risk / Return Rank: 14
BNDD Sharpe Ratio Rank: 13
BNDD Sortino Ratio Rank: 12
BNDD Omega Ratio Rank: 12
BNDD Calmar Ratio Rank: 16
BNDD Martin Ratio Rank: 15

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

KHYB vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares Asia Pacific High Income Bond ETF (KHYB) and Quadratic Deflation ETF (BNDD). 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.

	KHYB	BNDD	Difference
Sharpe ratio Return per unit of total volatility	3.11	0.32	+2.79
Sortino ratio Return per unit of downside risk	4.81	0.52	+4.29
Omega ratio Gain probability vs. loss probability	1.71	1.06	+0.64
Calmar ratio Return relative to maximum drawdown	2.67	0.56	+2.11
Martin ratio Return relative to average drawdown	11.98	1.20	+10.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KHYB vs. BNDD - Sharpe Ratio Comparison

The current KHYB Sharpe Ratio is 3.11, which is higher than the BNDD Sharpe Ratio of 0.32. The chart below compares the historical Sharpe Ratios of KHYB and BNDD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	KHYB	BNDD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.11	0.32	+2.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	-0.33	+0.61

Drawdowns

KHYB vs. BNDD - Drawdown Comparison

The maximum KHYB drawdown since its inception was -33.63%, which is greater than BNDD's maximum drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for KHYB and BNDD.

Drawdown Indicators

	KHYB	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-33.63%	-30.87%	-2.76%
Max Drawdown (1Y) Largest decline over 1 year	-3.97%	-6.09%	+2.12%
Max Drawdown (3Y) Largest decline over 3 years	-5.94%	-20.75%	+14.81%
Max Drawdown (5Y) Largest decline over 5 years	-32.86%	—	—
Current Drawdown Current decline from peak	-0.62%	-26.51%	+25.89%
Average Drawdown Average peak-to-trough decline	-9.71%	-19.34%	+9.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	2.83%	-1.95%

Volatility

KHYB vs. BNDD - Volatility Comparison

The current volatility for KraneShares Asia Pacific High Income Bond ETF (KHYB) is 0.90%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.21%. This indicates that KHYB experiences smaller price fluctuations and is considered to be less risky than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KHYB	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.90%	2.21%	-1.31%
Volatility (6M) Calculated over the trailing 6-month period	3.02%	8.11%	-5.09%
Volatility (1Y) Calculated over the trailing 1-year period	3.40%	10.59%	-7.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.32%	13.38%	-7.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.71%	13.38%	-7.67%

KHYB vs. BNDD - Expense Ratio Comparison

KHYB has a 0.69% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

KHYB vs. BNDD - Dividend Comparison

KHYB's dividend yield for the trailing twelve months is around 8.13%, more than BNDD's 3.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
BNDD Quadratic Deflation ETF	3.61%	3.82%	3.85%	4.30%	43.17%	1.04%	0.00%	0.00%	0.00%
KHYB KraneShares Asia Pacific High Income Bond ETF	8.13%	7.59%	10.11%	15.55%	9.67%	6.22%	4.76%	4.86%	2.56%

Frequently Asked Questions

Can I hold both KHYB and BNDD in my portfolio?

KHYB and BNDD have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KHYB or BNDD?

BNDD has higher volatility (2.21%) compared to KHYB (0.90%). In terms of maximum drawdown, KHYB dropped -33.63% vs BNDD's -30.87%.

Which ETF is better, KHYB or BNDD?

On 3-year performance, KHYB leads with 9.02% vs -3.91% for BNDD. On fees, KHYB is cheaper at 0.69% per year. On volatility, KHYB has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KHYB or BNDD?

Over the 3-year period, KHYB has performed better with a 9.02% return vs -3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KHYB or BNDD?

KHYB is cheaper with a 0.69% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, KHYB or BNDD?

KHYB has the higher dividend yield at 8.13%, compared with 3.61% for BNDD.

What is the main difference between KHYB and BNDD?

KHYB is categorized as Emerging Markets Bonds, while BNDD is Government Bonds. Their fees differ too: 0.69% for KHYB and 1.02% for BNDD.

Which has better risk-adjusted returns?

KHYB currently has the higher Sharpe Ratio (3.11 vs 0.32), 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.