USVN vs. BNDD

Last updated Jun 4, 2026

USVN (US Treasury 7 Year Note ETF) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. USVN is passively managed, while BNDD is actively managed. Over the past 3 years, USVN returned 2.70%/yr vs -3.91%/yr for BNDD. At a 0.40 correlation, their price movements are largely independent. USVN charges 0.15%/yr vs 1.02%/yr for BNDD.

Performance

USVN vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 7 Year Note ETF (USVN) and Quadratic Deflation ETF (BNDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USVN achieves a -0.70% return, which is significantly lower than BNDD's 4.32% return.

USVN

• 1D: -0.22%
• 1M: -0.18%
• YTD: -0.70%
• 6M: -1.08%
• 1Y: 3.56%
• 3Y*: 2.70%
• 5Y*: —
• 10Y*: —

BNDD

• 1D: -0.08%
• 1M: 1.37%
• YTD: 4.32%
• 6M: 2.24%
• 1Y: 3.39%
• 3Y*: -3.91%
• 5Y*: —
• 10Y*: —

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

USVN vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
USVN US Treasury 7 Year Note ETF	-0.70%	7.66%	0.03%	0.67%
BNDD Quadratic Deflation ETF	4.32%	-8.17%	-6.65%	-1.91%

Correlation

The correlation between USVN and BNDD 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	0.41
Correlation (All Time) Calculated using the full available price history since Mar 29, 2023	0.40

Return for Risk

USVN vs. BNDD — Risk / Return Rank

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

USVN

USVN Risk / Return Rank: 23
USVN Sharpe Ratio Rank: 25
USVN Sortino Ratio Rank: 24
USVN Omega Ratio Rank: 23
USVN Calmar Ratio Rank: 22
USVN Martin Ratio Rank: 23

BNDD

BNDD Risk / Return Rank: 14
BNDD Sharpe Ratio Rank: 13
BNDD Sortino Ratio Rank: 12
BNDD Omega Ratio Rank: 12
BNDD Calmar Ratio Rank: 16
BNDD Martin Ratio Rank: 15

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.

USVN vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 7 Year Note ETF (USVN) and Quadratic Deflation ETF (BNDD). 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.

	USVN	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	0.84	0.32	+0.52
Sortino ratio: Return per unit of downside risk	1.26	0.52	+0.74
Omega ratio: Gain probability vs. loss probability	1.14	1.06	+0.08
Calmar ratio: Return relative to maximum drawdown	0.97	0.56	+0.41
Martin ratio: Return relative to average drawdown	2.89	1.20	+1.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USVN vs. BNDD - Sharpe Ratio Comparison

The current USVN Sharpe Ratio is 0.84, which is higher than the BNDD Sharpe Ratio of 0.32. The chart below compares the historical Sharpe Ratios of USVN and BNDD, 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

	USVN	BNDD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.84	0.32	+0.52
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	-0.33	+0.74

Drawdowns

USVN vs. BNDD - Drawdown Comparison

The maximum USVN drawdown since its inception was -8.27%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for USVN and BNDD.

Drawdown Indicators

	USVN	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-8.27%	-30.87%	+22.60%
Max Drawdown (1Y) Largest decline over 1 year	-3.68%	-6.09%	+2.41%
Max Drawdown (3Y) Largest decline over 3 years	-5.89%	-20.75%	+14.86%
Current Drawdown Current decline from peak	-2.67%	-26.51%	+23.84%
Average Drawdown Average peak-to-trough decline	-2.34%	-19.34%	+17.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.24%	2.83%	-1.59%

Volatility

USVN vs. BNDD - Volatility Comparison

The current volatility for US Treasury 7 Year Note ETF (USVN) is 1.37%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.21%. This indicates that USVN experiences smaller price fluctuations and is considered to be less risky than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USVN	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.37%	2.21%	-0.84%
Volatility (6M) Calculated over the trailing 6-month period	2.98%	8.11%	-5.13%
Volatility (1Y) Calculated over the trailing 1-year period	4.26%	10.59%	-6.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.79%	13.38%	-7.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.79%	13.38%	-7.59%

USVN vs. BNDD - Expense Ratio Comparison

USVN has a 0.15% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

USVN vs. BNDD - Dividend Comparison

USVN's dividend yield for the trailing twelve months is around 3.75%, more than BNDD's 3.61% yield.

Position	TTM	2025	2024	2023	2022	2021
BNDD Quadratic Deflation ETF	3.61%	3.82%	3.85%	4.30%	43.17%	1.04%
USVN US Treasury 7 Year Note ETF	3.75%	3.81%	4.07%	2.91%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USVN and BNDD in my portfolio?

USVN and BNDD 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, USVN or BNDD?

BNDD has higher volatility (2.21%) compared to USVN (1.37%). In terms of maximum drawdown, USVN dropped -8.27% vs BNDD's -30.87%.

Which ETF is better, USVN or BNDD?

On 3-year performance, USVN leads with 2.70% vs -3.91% for BNDD. On fees, USVN is cheaper at 0.15% per year. On volatility, USVN has been the lower-risk option at 1.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USVN or BNDD?

Over the 3-year period, USVN has performed better with a 2.70% return vs -3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USVN or BNDD?

USVN is cheaper with a 0.15% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, USVN or BNDD?

USVN has the higher dividend yield at 3.75%, compared with 3.61% for BNDD.

What is the main difference between USVN and BNDD?

They also come from different issuers: US Benchmark Series and KraneShares. Their fees differ too: 0.15% for USVN and 1.02% for BNDD.

Which has better risk-adjusted returns?

USVN currently has the higher Sharpe Ratio (0.84 vs 0.32), 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.