UTRE vs. BNDD

Last updated Jun 4, 2026

UTRE (US Treasury 3 Year Note ETF) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. UTRE is passively managed, while BNDD is actively managed. Over the past 3 years, UTRE returned 3.64%/yr vs -3.91%/yr for BNDD. At a 0.16 correlation, their price movements are largely independent. UTRE charges 0.15%/yr vs 1.02%/yr for BNDD.

Performance

UTRE vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 3 Year Note ETF (UTRE) 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, UTRE achieves a -0.09% return, which is significantly lower than BNDD's 4.32% return.

UTRE

• 1D: -0.08%
• 1M: -0.10%
• YTD: -0.09%
• 6M: 0.06%
• 1Y: 2.93%
• 3Y*: 3.64%
• 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)

UTRE vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
UTRE US Treasury 3 Year Note ETF	-0.09%	5.68%	2.96%	2.16%
BNDD Quadratic Deflation ETF	4.32%	-8.17%	-6.65%	-1.91%

Correlation

The correlation between UTRE and BNDD is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (All Time) Calculated using the full available price history since Mar 29, 2023	0.16

Return for Risk

UTRE vs. BNDD — Risk / Return Rank

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

UTRE

UTRE Risk / Return Rank: 42
UTRE Sharpe Ratio Rank: 41
UTRE Sortino Ratio Rank: 46
UTRE Omega Ratio Rank: 41
UTRE Calmar Ratio Rank: 41
UTRE Martin Ratio Rank: 39

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.

UTRE vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 3 Year Note ETF (UTRE) 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.

	UTRE	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	1.46	0.32	+1.14
Sortino ratio: Return per unit of downside risk	2.28	0.52	+1.76
Omega ratio: Gain probability vs. loss probability	1.27	1.06	+0.20
Calmar ratio: Return relative to maximum drawdown	2.05	0.56	+1.49
Martin ratio: Return relative to average drawdown	6.10	1.20	+4.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UTRE vs. BNDD - Sharpe Ratio Comparison

The current UTRE Sharpe Ratio is 1.46, which is higher than the BNDD Sharpe Ratio of 0.32. The chart below compares the historical Sharpe Ratios of UTRE 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

	UTRE	BNDD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.46	0.32	+1.14
Sharpe Ratio (All Time) Calculated using the full available price history	1.25	-0.33	+1.58

Drawdowns

UTRE vs. BNDD - Drawdown Comparison

The maximum UTRE drawdown since its inception was -2.80%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for UTRE and BNDD.

Drawdown Indicators

	UTRE	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-2.80%	-30.87%	+28.07%
Max Drawdown (1Y) Largest decline over 1 year	-1.44%	-6.09%	+4.65%
Max Drawdown (3Y) Largest decline over 3 years	-1.86%	-20.75%	+18.89%
Current Drawdown Current decline from peak	-1.07%	-26.51%	+25.44%
Average Drawdown Average peak-to-trough decline	-0.77%	-19.34%	+18.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.48%	2.83%	-2.35%

Volatility

UTRE vs. BNDD - Volatility Comparison

The current volatility for US Treasury 3 Year Note ETF (UTRE) is 0.58%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.21%. This indicates that UTRE 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

	UTRE	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.58%	2.21%	-1.63%
Volatility (6M) Calculated over the trailing 6-month period	1.41%	8.11%	-6.70%
Volatility (1Y) Calculated over the trailing 1-year period	2.02%	10.59%	-8.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.70%	13.38%	-10.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.70%	13.38%	-10.68%

UTRE vs. BNDD - Expense Ratio Comparison

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

Dividends

UTRE vs. BNDD - Dividend Comparison

UTRE's dividend yield for the trailing twelve months is around 3.50%, less 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%
UTRE US Treasury 3 Year Note ETF	3.50%	3.60%	4.01%	3.14%	0.00%	0.00%

Frequently Asked Questions

Can I hold both UTRE and BNDD in my portfolio?

UTRE and BNDD have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UTRE or BNDD?

BNDD has higher volatility (2.21%) compared to UTRE (0.58%). In terms of maximum drawdown, UTRE dropped -2.80% vs BNDD's -30.87%.

Which ETF is better, UTRE or BNDD?

On 3-year performance, UTRE leads with 3.64% vs -3.91% for BNDD. On fees, UTRE is cheaper at 0.15% per year. On volatility, UTRE has been the lower-risk option at 0.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UTRE or BNDD?

Over the 3-year period, UTRE has performed better with a 3.64% return vs -3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UTRE or BNDD?

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

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

BNDD has the higher dividend yield at 3.61%, compared with 3.50% for UTRE.

What is the main difference between UTRE and BNDD?

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

Which has better risk-adjusted returns?

UTRE currently has the higher Sharpe Ratio (1.46 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.