SPAB vs. BND
Compare and contrast key facts about SPDR Portfolio Aggregate Bond ETF (SPAB) and Vanguard Total Bond Market ETF (BND).
SPAB and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SPAB is a passively managed fund by State Street that tracks the performance of the Bloomberg US Aggregate. It was launched on May 23, 2007. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both SPAB and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SPAB or BND.
Key characteristics
| SPAB | BND | |
|---|---|---|
| YTD Return | 1.57% | 1.59% |
| 1Y Return | 7.98% | 7.87% |
| 3Y Return (Ann) | -2.31% | -2.37% |
| 5Y Return (Ann) | -0.27% | -0.27% |
| 10Y Return (Ann) | 1.38% | 1.41% |
| Sharpe Ratio | 1.37 | 1.34 |
| Sortino Ratio | 2.00 | 1.98 |
| Omega Ratio | 1.24 | 1.24 |
| Calmar Ratio | 0.51 | 0.50 |
| Martin Ratio | 4.74 | 4.75 |
| Ulcer Index | 1.67% | 1.65% |
| Daily Std Dev | 5.81% | 5.84% |
| Max Drawdown | -18.56% | -18.84% |
| Current Drawdown | -8.84% | -9.17% |
Correlation
The correlation between SPAB and BND is 0.85, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SPAB vs. BND - Performance Comparison
The year-to-date returns for both investments are quite close, with SPAB having a 1.57% return and BND slightly higher at 1.59%. Both investments have delivered pretty close results over the past 10 years, with SPAB having a 1.38% annualized return and BND not far ahead at 1.41%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SPAB vs. BND - Expense Ratio Comparison
Both SPAB and BND have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
SPAB vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Aggregate Bond ETF (SPAB) 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.
Dividends
SPAB vs. BND - Dividend Comparison
SPAB's dividend yield for the trailing twelve months is around 3.80%, more than BND's 3.58% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPAB SPDR Portfolio Aggregate Bond ETF | 3.80% | 3.34% | 2.59% | 2.11% | 2.43% | 2.92% | 2.96% | 2.67% | 2.63% | 2.61% | 2.43% | 1.99% |
BND Vanguard Total Bond Market ETF | 3.58% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
SPAB vs. BND - Drawdown Comparison
The maximum SPAB drawdown since its inception was -18.56%, roughly equal to the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for SPAB and BND. For additional features, visit the drawdowns tool.
Volatility
SPAB vs. BND - Volatility Comparison
SPDR Portfolio Aggregate Bond ETF (SPAB) and Vanguard Total Bond Market ETF (BND) have volatilities of 1.78% and 1.77%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.