TLT vs. BND
TLT (iShares 20+ Year Treasury Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year 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 10 years, TLT returned -1.71%/yr vs 1.55%/yr for BND. Their correlation of 0.86 suggests significant overlap in exposure. TLT charges 0.15%/yr vs 0.03%/yr for BND.
Performance
TLT vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a 0.92% return, which is significantly higher than BND's 0.38% return. Over the past 10 years, TLT has underperformed BND with an annualized return of -1.71%, while BND has yielded a comparatively higher 1.55% annualized return.
TLT
- 1D
- 0.16%
- 1M
- 3.72%
- YTD
- 0.92%
- 6M
- 0.58%
- 1Y
- 4.36%
- 3Y*
- -1.61%
- 5Y*
- -6.85%
- 10Y*
- -1.71%
BND
- 1D
- -0.37%
- 1M
- 0.96%
- YTD
- 0.38%
- 6M
- 0.48%
- 1Y
- 4.50%
- 3Y*
- 3.96%
- 5Y*
- -0.02%
- 10Y*
- 1.55%
TLT vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 0.92% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
BND Vanguard Total Bond Market ETF | 0.38% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between TLT and BND is 0.92, 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 | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.90 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.86 |
The correlation between TLT and BND has been stable across timeframes, ranging from 0.86 to 0.94 - a consistent structural relationship.
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Return for Risk
TLT vs. BND — Risk / Return Rank
TLT
BND
TLT vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.
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.
| TLT | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.75 | ||
| Sortino ratioReturn per unit of downside risk | -1.08 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.21 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 0.58 | 1.69 | -1.11 |
| Martin ratioReturn relative to average drawdown | 1.38 | 4.86 | -3.48 |
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Drawdowns
TLT vs. BND - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for TLT and BND.
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Drawdown Indicators
| TLT | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -18.58% | -29.77% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -2.68% | -4.90% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -5.92% | -13.26% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -17.91% | -25.79% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -18.58% | -29.77% |
Current DrawdownCurrent decline from peak | -39.73% | -2.26% | -37.47% |
Average DrawdownAverage peak-to-trough decline | -13.86% | -3.06% | -10.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.16% | 0.93% | +2.23% |
Volatility
TLT vs. BND - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.33% compared to Vanguard Total Bond Market ETF (BND) at 1.19%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier 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
| TLT | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.33% | 1.19% | +1.14% |
Volatility (6M)Calculated over the trailing 6-month period | 6.59% | 2.75% | +3.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.51% | 3.73% | +5.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 6.03% | +9.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 5.53% | +9.38% |
TLT vs. BND - Expense Ratio Comparison
TLT has a 0.15% 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
TLT vs. BND - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.53%, more 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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.53% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
With a correlation of 0.92, TLT and BND move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
TLT has higher volatility (2.33%) compared to BND (1.19%). In terms of maximum drawdown, TLT dropped -48.35% vs BND's -18.58%.
On 10-year performance, BND leads with 1.55% vs -1.71% for TLT. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.19%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BND has performed better with a 1.55% return vs -1.71%. 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 0.15% for TLT.
TLT has the higher dividend yield at 4.53%, compared with 3.96% for BND.
TLT is categorized as Government Bonds, while BND is Total Bond Market. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for TLT and 0.03% for BND.
BND currently has the higher Sharpe Ratio (1.22 vs 0.46), 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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