TMSF vs. BNDW

Last updated Jun 4, 2026

TMSF (T. Rowe Price Multi-Sector Income ETF) and BNDW (Vanguard Total World Bond ETF) are both exchange-traded funds - TMSF is a Multisector Bonds fund actively managed by T. Rowe Price, while BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index. TMSF is actively managed, while BNDW is passively managed. A 0.65 correlation means they provide meaningful diversification when combined. TMSF charges 0.37%/yr vs 0.05%/yr for BNDW.

Performance

TMSF vs. BNDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Multi-Sector Income ETF (TMSF) and Vanguard Total World Bond ETF (BNDW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TMSF achieves a 1.71% return, which is significantly higher than BNDW's 0.42% return.

TMSF

• 1D: -0.20%
• 1M: 0.53%
• YTD: 1.71%
• 6M: 2.23%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BNDW

• 1D: -0.26%
• 1M: 0.44%
• YTD: 0.42%
• 6M: 0.18%
• 1Y: 3.51%
• 3Y*: 3.99%
• 5Y*: 0.22%
• 10Y*: —

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

TMSF vs. BNDW - Yearly Performance Comparison

	2026 (YTD)	2025
TMSF T. Rowe Price Multi-Sector Income ETF	1.71%	1.29%
BNDW Vanguard Total World Bond ETF	0.42%	0.09%

Correlation

The correlation between TMSF and BNDW is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Nov 21, 2025	0.65

Return for Risk

TMSF vs. BNDW — Risk / Return Rank

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

BNDW

BNDW Risk / Return Rank: 27
BNDW Sharpe Ratio Rank: 28
BNDW Sortino Ratio Rank: 27
BNDW Omega Ratio Rank: 26
BNDW Calmar Ratio Rank: 27
BNDW Martin Ratio Rank: 26

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.

TMSF vs. BNDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Multi-Sector Income ETF (TMSF) and Vanguard Total World Bond ETF (BNDW). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	TMSF	BNDW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.05	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.04	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.99	0.37	+1.62

Drawdowns

TMSF vs. BNDW - Drawdown Comparison

The maximum TMSF drawdown since its inception was -2.28%, smaller than the maximum BNDW drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for TMSF and BNDW.

Drawdown Indicators

	TMSF	BNDW	Difference
Max Drawdown Largest peak-to-trough decline	-2.28%	-17.22%	+14.94%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.70%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-4.27%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-16.93%	—
Current Drawdown Current decline from peak	-0.25%	-1.53%	+1.28%
Average Drawdown Average peak-to-trough decline	-0.38%	-4.98%	+4.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.95%	—

Volatility

Volatility by Period

	TMSF	BNDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.31%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.62%	—
Volatility (1Y) Calculated over the trailing 1-year period	2.94%	3.36%	-0.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.94%	5.21%	-2.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.94%	4.90%	-1.96%

TMSF vs. BNDW - Expense Ratio Comparison

TMSF has a 0.37% expense ratio, which is higher than BNDW's 0.05% expense ratio.

Dividends

TMSF vs. BNDW - Dividend Comparison

TMSF's dividend yield for the trailing twelve months is around 3.06%, less than BNDW's 4.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
BNDW Vanguard Total World Bond ETF	4.21%	4.12%	3.90%	3.73%	2.02%	2.58%	1.56%	3.05%	1.66%
TMSF T. Rowe Price Multi-Sector Income ETF	3.06%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMSF and BNDW in my portfolio?

TMSF and BNDW have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TMSF or BNDW?

On fees, BNDW is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TMSF or BNDW?

BNDW is cheaper with a 0.05% expense ratio, compared with 0.37% for TMSF.

Which ETF pays a higher dividend yield, TMSF or BNDW?

BNDW has the higher dividend yield at 4.21%, compared with 3.06% for TMSF.

What is the main difference between TMSF and BNDW?

TMSF is categorized as Multisector Bonds, while BNDW is Global Bonds. They also come from different issuers: T. Rowe Price and Vanguard. Their fees differ too: 0.37% for TMSF and 0.05% for BNDW.