TNBMX vs. BND

Last updated Jun 3, 2026

TNBMX (T. Rowe Price International Bond Fund (USD Hedged)) and BND (Vanguard Total Bond Market ETF) are both funds - TNBMX is a Global Bonds fund managed by T. Rowe Price, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 5 years, TNBMX returned 1.47%/yr vs 0.20%/yr for BND. A 0.58 correlation means they provide meaningful diversification when combined. TNBMX charges 0.53%/yr vs 0.03%/yr for BND.

Performance

TNBMX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price International Bond Fund (USD Hedged) (TNBMX) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TNBMX achieves a 0.86% return, which is significantly higher than BND's 0.46% return.

TNBMX

• 1D: -0.23%
• 1M: 0.47%
• YTD: 0.86%
• 6M: 1.29%
• 1Y: 4.39%
• 3Y*: 5.71%
• 5Y*: 1.47%
• 10Y*: —

BND

• 1D: 0.03%
• 1M: 0.12%
• YTD: 0.46%
• 6M: 0.46%
• 1Y: 5.19%
• 3Y*: 4.03%
• 5Y*: 0.20%
• 10Y*: 1.60%

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

TNBMX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TNBMX T. Rowe Price International Bond Fund (USD Hedged)	0.86%	5.25%	5.00%	10.32%	-12.30%	-1.63%	5.73%	10.77%	1.72%	1.35%
BND Vanguard Total Bond Market ETF	0.46%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	0.22%

Correlation

The correlation between TNBMX and BND is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since Sep 14, 2017	0.58

Over the past year, the correlation between TNBMX and BND has dropped to 0.35 - well below their long-term average of 0.58, suggesting their price drivers have been diverging.

Return for Risk

TNBMX vs. BND — Risk / Return Rank

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

TNBMX

TNBMX Risk / Return Rank: 35
TNBMX Sharpe Ratio Rank: 34
TNBMX Sortino Ratio Rank: 42
TNBMX Omega Ratio Rank: 49
TNBMX Calmar Ratio Rank: 25
TNBMX Martin Ratio Rank: 26

BND

BND Risk / Return Rank: 38
BND Sharpe Ratio Rank: 38
BND Sortino Ratio Rank: 40
BND Omega Ratio Rank: 36
BND Calmar Ratio Rank: 37
BND Martin Ratio Rank: 36

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.

TNBMX vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price International Bond Fund (USD Hedged) (TNBMX) 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.

	TNBMX	BND	Difference
Sharpe ratio Return per unit of total volatility	1.69	1.38	+0.31
Sortino ratio Return per unit of downside risk	2.71	2.07	+0.65
Omega ratio Gain probability vs. loss probability	1.38	1.24	+0.14
Calmar ratio Return relative to maximum drawdown	1.89	1.85	+0.04
Martin ratio Return relative to average drawdown	6.48	5.66	+0.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TNBMX vs. BND - Sharpe Ratio Comparison

The current TNBMX Sharpe Ratio is 1.69, which is comparable to the BND Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of TNBMX and BND, 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

	TNBMX	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.69	1.38	+0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.03	+0.37
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.29	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.87	0.59	+0.28

Drawdowns

TNBMX vs. BND - Drawdown Comparison

The maximum TNBMX drawdown since its inception was -15.78%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for TNBMX and BND.

Drawdown Indicators

	TNBMX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-15.78%	-18.58%	+2.80%
Max Drawdown (1Y) Largest decline over 1 year	-2.32%	-2.68%	+0.36%
Max Drawdown (3Y) Largest decline over 3 years	-2.32%	-5.92%	+3.60%
Max Drawdown (5Y) Largest decline over 5 years	-15.48%	-17.91%	+2.43%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.58%	—
Current Drawdown Current decline from peak	-0.51%	-2.18%	+1.67%
Average Drawdown Average peak-to-trough decline	-3.07%	-3.06%	-0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.68%	0.88%	-0.20%

Volatility

TNBMX vs. BND - Volatility Comparison

The current volatility for T. Rowe Price International Bond Fund (USD Hedged) (TNBMX) is 0.88%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.26%. This indicates that TNBMX 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.

Volatility by Period

	TNBMX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.88%	1.26%	-0.38%
Volatility (6M) Calculated over the trailing 6-month period	2.14%	2.68%	-0.54%
Volatility (1Y) Calculated over the trailing 1-year period	2.54%	3.78%	-1.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.63%	6.02%	-2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.33%	5.53%	-2.20%

TNBMX vs. BND - Expense Ratio Comparison

TNBMX has a 0.53% expense ratio, which is higher than BND's 0.03% expense ratio.

Dividends

TNBMX vs. BND - Dividend Comparison

TNBMX's dividend yield for the trailing twelve months is around 4.78%, 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%
TNBMX T. Rowe Price International Bond Fund (USD Hedged)	4.78%	4.76%	4.24%	2.85%	10.20%	2.84%	1.90%	4.65%	8.20%	0.64%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TNBMX and BND in my portfolio?

TNBMX and BND have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TNBMX or BND?

BND has higher volatility (1.26%) compared to TNBMX (0.88%). In terms of maximum drawdown, TNBMX dropped -15.78% vs BND's -18.58%.

Which has better risk-adjusted returns?

TNBMX currently has the higher Sharpe Ratio (1.69 vs 1.38), 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.