MUNY vs. BND
MUNY (Vanguard New York Tax-Exempt Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - MUNY is a Municipal Bonds fund tracking the S&P New York AMT-Free Municipal USD10 Million Par Bond 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 year, MUNY returned 5.02% vs 4.60% for BND. A 0.64 correlation means they provide meaningful diversification when combined. MUNY charges 0.09%/yr vs 0.03%/yr for BND.
Performance
MUNY vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, MUNY achieves a 1.56% return, which is significantly higher than BND's 0.41% return.
MUNY
- 1D
- 0.06%
- 1M
- 0.76%
- YTD
- 1.56%
- 6M
- 1.98%
- 1Y
- 5.02%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BND
- 1D
- 0.14%
- 1M
- 0.23%
- YTD
- 0.41%
- 6M
- 0.44%
- 1Y
- 4.60%
- 3Y*
- 4.01%
- 5Y*
- 0.11%
- 10Y*
- 1.61%
MUNY vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
MUNY Vanguard New York Tax-Exempt Bond ETF | 1.56% | 5.54% |
BND Vanguard Total Bond Market ETF | 0.41% | 5.48% |
Correlation
The correlation between MUNY and BND is 0.63, 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 | 0.63 |
Correlation (All Time) Calculated using the full available price history since May 23, 2025 | 0.64 |
The correlation between MUNY and BND has been stable across timeframes, ranging from 0.63 to 0.64 - a consistent structural relationship.
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Return for Risk
MUNY vs. BND — Risk / Return Rank
MUNY
BND
MUNY vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard New York Tax-Exempt Bond ETF (MUNY) 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.
| MUNY | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.23 | ||
| Sortino ratioReturn per unit of downside risk | +0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.22 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.87 | 1.73 | +0.14 |
| Martin ratioReturn relative to average drawdown | 6.31 | 5.21 | +1.11 |
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
| MUNY | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.47 | 1.24 | +0.23 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.02 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.29 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.78 | 0.59 | +1.19 |
Drawdowns
MUNY vs. BND - Drawdown Comparison
The maximum MUNY drawdown since its inception was -2.70%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for MUNY and BND.
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Drawdown Indicators
| MUNY | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -2.70% | -18.58% | +15.88% |
Max Drawdown (1Y)Largest decline over 1 year | -2.70% | -2.68% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | — | -5.92% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -17.91% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | -0.44% | -2.23% | +1.79% |
Average DrawdownAverage peak-to-trough decline | -0.66% | -3.06% | +2.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.97% | 0.89% | +0.08% |
Volatility
MUNY vs. BND - Volatility Comparison
The current volatility for Vanguard New York Tax-Exempt Bond ETF (MUNY) is 1.04%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.22%. This indicates that MUNY experiences smaller price fluctuations and is considered to be less risky 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
| MUNY | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.04% | 1.22% | -0.18% |
Volatility (6M)Calculated over the trailing 6-month period | 2.30% | 2.66% | -0.36% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.93% | 3.78% | +0.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.92% | 6.02% | -2.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.92% | 5.53% | -1.61% |
MUNY vs. BND - Expense Ratio Comparison
MUNY has a 0.09% 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
MUNY vs. BND - Dividend Comparison
MUNY's dividend yield for the trailing twelve months is around 3.11%, less than BND's 3.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
MUNY Vanguard New York Tax-Exempt Bond ETF | 3.11% | 1.80% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
MUNY and BND have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.22%) compared to MUNY (1.04%). In terms of maximum drawdown, MUNY dropped -2.70% vs BND's -18.58%.
On 1-year performance, MUNY leads with 5.02% vs 4.60% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, MUNY has been the lower-risk option at 1.04%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, MUNY has performed better with a 5.02% return vs 4.60%. 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 0.09% for MUNY.
BND has the higher dividend yield at 3.96%, compared with 3.11% for MUNY.
MUNY is categorized as Municipal Bonds, while BND is Total Bond Market. MUNY tracks S&P New York AMT-Free Municipal USD10 Million Par Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.09% for MUNY and 0.03% for BND.
MUNY currently has the higher Sharpe Ratio (1.47 vs 1.24), 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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