SPIB vs. BND
Compare and contrast key facts about SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB) and Vanguard Total Bond Market ETF (BND).
SPIB and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SPIB is a passively managed fund by State Street that tracks the performance of the Bloomberg US Aggregate Credit - Corporate - Investment Grade - Intermediate. It was launched on Feb 10, 2009. 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 SPIB 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: SPIB or BND.
Key characteristics
| SPIB | BND | |
|---|---|---|
| YTD Return | -0.99% | -2.99% |
| 1Y Return | 3.23% | -0.77% |
| 3Y Return (Ann) | -1.24% | -3.50% |
| 5Y Return (Ann) | 1.50% | -0.17% |
| 10Y Return (Ann) | 2.19% | 1.19% |
| Sharpe Ratio | 0.61 | -0.18 |
| Daily Std Dev | 4.70% | 6.75% |
| Max Drawdown | -14.94% | -18.84% |
| Current Drawdown | -5.53% | -13.27% |
Correlation
The correlation between SPIB and BND is 0.75, 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
SPIB vs. BND - Performance Comparison
In the year-to-date period, SPIB achieves a -0.99% return, which is significantly higher than BND's -2.99% return. Over the past 10 years, SPIB has outperformed BND with an annualized return of 2.19%, while BND has yielded a comparatively lower 1.19% annualized return. 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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SPIB vs. BND - Expense Ratio Comparison
SPIB has a 0.07% 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%.
Risk-Adjusted Performance
SPIB vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB) 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
SPIB vs. BND - Dividend Comparison
SPIB's dividend yield for the trailing twelve months is around 4.10%, more than BND's 3.36% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPIB SPDR Portfolio Intermediate Term Corporate Bond ETF | 4.10% | 3.84% | 2.65% | 1.58% | 2.18% | 3.03% | 3.03% | 2.79% | 2.68% | 2.69% | 2.65% | 3.04% |
BND Vanguard Total Bond Market ETF | 3.36% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
SPIB vs. BND - Drawdown Comparison
The maximum SPIB drawdown since its inception was -14.94%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for SPIB and BND. For additional features, visit the drawdowns tool.
Volatility
SPIB vs. BND - Volatility Comparison
The current volatility for SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB) is 1.25%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.81%. This indicates that SPIB 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.