PBDIX vs. BAGIX

Last updated Jun 5, 2026

PBDIX (T. Rowe Price QM U.S. Bond Index Fund) and BAGIX (Baird Aggregate Bond Fund Class I) are both Total Bond Market funds. Over the past 10 years, PBDIX returned 1.86%/yr vs 1.97%/yr for BAGIX. Their correlation of 0.90 suggests significant overlap in exposure. PBDIX charges 0.23%/yr vs 0.30%/yr for BAGIX.

Performance

PBDIX vs. BAGIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price QM U.S. Bond Index Fund (PBDIX) and Baird Aggregate Bond Fund Class I (BAGIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PBDIX achieves a -0.01% return, which is significantly lower than BAGIX's 0.22% return. Over the past 10 years, PBDIX has underperformed BAGIX with an annualized return of 1.86%, while BAGIX has yielded a comparatively higher 1.97% annualized return.

PBDIX

• 1D: -0.21%
• 1M: 0.05%
• YTD: -0.01%
• 6M: 0.62%
• 1Y: 5.91%
• 3Y*: 4.77%
• 5Y*: 0.40%
• 10Y*: 1.86%

BAGIX

• 1D: -0.20%
• 1M: 0.16%
• YTD: 0.22%
• 6M: 0.37%
• 1Y: 4.61%
• 3Y*: 4.45%
• 5Y*: 0.33%
• 10Y*: 1.97%

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

PBDIX vs. BAGIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PBDIX T. Rowe Price QM U.S. Bond Index Fund	-0.01%	8.71%	2.66%	6.02%	-14.24%	-1.45%	8.17%	8.69%	-0.01%	3.83%
BAGIX Baird Aggregate Bond Fund Class I	0.22%	7.37%	1.85%	6.42%	-13.35%	-1.46%	8.63%	9.48%	-0.31%	4.20%

Correlation

The correlation between PBDIX and BAGIX is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Dec 1, 2000	0.90

The correlation between PBDIX and BAGIX has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

Return for Risk

PBDIX vs. BAGIX — Risk / Return Rank

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

PBDIX

PBDIX Risk / Return Rank: 31
PBDIX Sharpe Ratio Rank: 31
PBDIX Sortino Ratio Rank: 33
PBDIX Omega Ratio Rank: 31
PBDIX Calmar Ratio Rank: 35
PBDIX Martin Ratio Rank: 27

BAGIX

BAGIX Risk / Return Rank: 24
BAGIX Sharpe Ratio Rank: 23
BAGIX Sortino Ratio Rank: 25
BAGIX Omega Ratio Rank: 22
BAGIX Calmar Ratio Rank: 27
BAGIX Martin Ratio Rank: 23

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.

PBDIX vs. BAGIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price QM U.S. Bond Index Fund (PBDIX) and Baird Aggregate Bond Fund Class I (BAGIX). 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.

	PBDIX	BAGIX	Difference
Sharpe ratio: Return per unit of total volatility	1.60	1.39	+0.22
Sortino ratio: Return per unit of downside risk	2.42	2.09	+0.33
Omega ratio: Gain probability vs. loss probability	1.29	1.25	+0.04
Calmar ratio: Return relative to maximum drawdown	2.20	1.94	+0.26
Martin ratio: Return relative to average drawdown	6.43	5.75	+0.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PBDIX vs. BAGIX - Sharpe Ratio Comparison

The current PBDIX Sharpe Ratio is 1.60, which is comparable to the BAGIX Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of PBDIX and BAGIX, 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

	PBDIX	BAGIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.60	1.39	+0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	0.06	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.38	0.40	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.85	0.97	-0.13

Drawdowns

PBDIX vs. BAGIX - Drawdown Comparison

The maximum PBDIX drawdown since its inception was -19.20%, roughly equal to the maximum BAGIX drawdown of -18.62%. Use the drawdown chart below to compare losses from any high point for PBDIX and BAGIX.

Drawdown Indicators

	PBDIX	BAGIX	Difference
Max Drawdown Largest peak-to-trough decline	-19.20%	-18.62%	-0.58%
Max Drawdown (1Y) Largest decline over 1 year	-3.08%	-2.72%	-0.36%
Max Drawdown (3Y) Largest decline over 3 years	-6.19%	-6.05%	-0.14%
Max Drawdown (5Y) Largest decline over 5 years	-19.10%	-18.60%	-0.50%
Max Drawdown (10Y) Largest decline over 10 years	-19.20%	-18.62%	-0.58%
Current Drawdown Current decline from peak	-1.80%	-1.56%	-0.24%
Average Drawdown Average peak-to-trough decline	-2.45%	-2.35%	-0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.04%	0.92%	+0.12%

Volatility

PBDIX vs. BAGIX - Volatility Comparison

T. Rowe Price QM U.S. Bond Index Fund (PBDIX) has a higher volatility of 1.44% compared to Baird Aggregate Bond Fund Class I (BAGIX) at 1.23%. This indicates that PBDIX's price experiences larger fluctuations and is considered to be riskier than BAGIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PBDIX	BAGIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.44%	1.23%	+0.21%
Volatility (6M) Calculated over the trailing 6-month period	3.10%	2.59%	+0.51%
Volatility (1Y) Calculated over the trailing 1-year period	4.22%	3.80%	+0.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.06%	5.92%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.99%	4.88%	+0.11%

PBDIX vs. BAGIX - Expense Ratio Comparison

PBDIX has a 0.23% expense ratio, which is lower than BAGIX's 0.30% expense ratio.

Dividends

PBDIX vs. BAGIX - Dividend Comparison

PBDIX's dividend yield for the trailing twelve months is around 5.70%, more than BAGIX's 4.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BAGIX Baird Aggregate Bond Fund Class I	4.25%	4.12%	4.03%	3.47%	2.70%	2.00%	3.39%	2.75%	2.87%	2.54%	2.25%	2.46%
PBDIX T. Rowe Price QM U.S. Bond Index Fund	5.70%	5.59%	5.17%	4.00%	2.01%	1.84%	3.59%	3.18%	2.94%	2.75%	2.82%	2.99%

Frequently Asked Questions

Can I hold both PBDIX and BAGIX in my portfolio?

PBDIX and BAGIX have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PBDIX or BAGIX?

PBDIX has higher volatility (1.44%) compared to BAGIX (1.23%). In terms of maximum drawdown, PBDIX dropped -19.20% vs BAGIX's -18.62%.

Which has better risk-adjusted returns?

PBDIX currently has the higher Sharpe Ratio (1.60 vs 1.39), 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.