LFAO vs. BNDD

Last updated Jun 23, 2026

LFAO (LifeX 2055 Longevity Income ETF) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. Both are actively managed. Over the past year, LFAO returned 3.55% vs 4.44% for BNDD. A 0.64 correlation means they provide meaningful diversification when combined. LFAO charges 0.25%/yr vs 1.02%/yr for BNDD.

Performance

LFAO vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LifeX 2055 Longevity Income ETF (LFAO) 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, LFAO achieves a 0.08% return, which is significantly lower than BNDD's 6.70% return.

LFAO

• 1D: -0.52%
• 1M: 1.40%
• YTD: 0.08%
• 6M: 0.11%
• 1Y: 3.55%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BNDD

• 1D: -0.56%
• 1M: 3.22%
• YTD: 6.70%
• 6M: 6.28%
• 1Y: 4.44%
• 3Y*: -4.16%
• 5Y*: —
• 10Y*: —

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

LFAO vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LFAO LifeX 2055 Longevity Income ETF	0.08%	5.65%	-8.36%
BNDD Quadratic Deflation ETF	6.70%	-8.17%	-7.64%

Correlation

The correlation between LFAO and BNDD is 0.55, 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	0.55
Correlation (All Time) Calculated using the full available price history since Sep 16, 2024	0.64

The correlation between LFAO and BNDD has been stable across timeframes, ranging from 0.55 to 0.64 - a consistent structural relationship.

Return for Risk

LFAO vs. BNDD — Risk / Return Rank

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

LFAO

LFAO Risk / Return Rank: 15
LFAO Sharpe Ratio Rank: 16
LFAO Sortino Ratio Rank: 15
LFAO Omega Ratio Rank: 14
LFAO Calmar Ratio Rank: 15
LFAO Martin Ratio Rank: 16

BNDD

BNDD Risk / Return Rank: 15
BNDD Sharpe Ratio Rank: 15
BNDD Sortino Ratio Rank: 13
BNDD Omega Ratio Rank: 13
BNDD Calmar Ratio Rank: 17
BNDD Martin Ratio Rank: 16

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.

LFAO vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LifeX 2055 Longevity Income ETF (LFAO) 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.

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.

	LFAO	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	0.52	0.42	+0.09
Sortino ratio: Return per unit of downside risk	0.80	0.67	+0.13
Omega ratio: Gain probability vs. loss probability	1.09	1.08	+0.01
Calmar ratio: Return relative to maximum drawdown	0.61	0.73	-0.12
Martin ratio: Return relative to average drawdown	1.58	1.58	0.00

LFAO vs. BNDD - Sharpe Ratio Comparison

The current LFAO Sharpe Ratio is 0.52, which is comparable to the BNDD Sharpe Ratio of 0.42. The chart below compares the historical Sharpe Ratios of LFAO 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.

Drawdowns

LFAO vs. BNDD - Drawdown Comparison

The maximum LFAO drawdown since its inception was -10.12%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for LFAO and BNDD.

Drawdown Indicators

	LFAO	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-10.12%	-30.87%	+20.75%
Max Drawdown (1Y) Largest decline over 1 year	-5.86%	-6.09%	+0.23%
Max Drawdown (3Y) Largest decline over 3 years	—	-20.75%	—
Current Drawdown Current decline from peak	-3.18%	-24.83%	+21.65%
Average Drawdown Average peak-to-trough decline	-4.54%	-19.38%	+14.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.26%	2.82%	-0.56%

Volatility

LFAO vs. BNDD - Volatility Comparison

The current volatility for LifeX 2055 Longevity Income ETF (LFAO) is 1.72%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.65%. This indicates that LFAO 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

	LFAO	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.72%	2.65%	-0.93%
Volatility (6M) Calculated over the trailing 6-month period	5.04%	8.27%	-3.23%
Volatility (1Y) Calculated over the trailing 1-year period	6.87%	10.51%	-3.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.05%	13.35%	-5.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.05%	13.35%	-5.30%

LFAO vs. BNDD - Expense Ratio Comparison

LFAO has a 0.25% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

LFAO vs. BNDD - Dividend Comparison

LFAO's dividend yield for the trailing twelve months is around 10.95%, more than BNDD's 3.53% yield.

Position	TTM	2025	2024	2023	2022	2021
BNDD Quadratic Deflation ETF	3.53%	3.82%	3.85%	4.30%	43.17%	1.04%
LFAO LifeX 2055 Longevity Income ETF	10.95%	14.33%	1.64%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LFAO and BNDD in my portfolio?

LFAO and BNDD have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LFAO or BNDD?

BNDD has higher volatility (2.65%) compared to LFAO (1.72%). In terms of maximum drawdown, LFAO dropped -10.12% vs BNDD's -30.87%.

Which ETF is better, LFAO or BNDD?

On 1-year performance, BNDD leads with 4.44% vs 3.55% for LFAO. On fees, LFAO is cheaper at 0.25% per year. On volatility, LFAO has been the lower-risk option at 1.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LFAO or BNDD?

Over the 1-year period, BNDD has performed better with a 4.44% return vs 3.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LFAO or BNDD?

LFAO is cheaper with a 0.25% expense ratio, compared with 1.02% for BNDD.

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

LFAO has the higher dividend yield at 10.95%, compared with 3.53% for BNDD.

What is the main difference between LFAO and BNDD?

They also come from different issuers: Stone Ridge and KraneShares. Their fees differ too: 0.25% for LFAO and 1.02% for BNDD.

Which has better risk-adjusted returns?

LFAO currently has the higher Sharpe Ratio (0.52 vs 0.42), 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.