VBCA vs. BND

Last updated Jun 24, 2026

VBCA (Vanguard Target Maturity 2027 Corporate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VBCA is a Corporate Bonds fund tracking the ICE 2027 Maturity US Corporate Constrained Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Their correlation of 0.80 suggests significant overlap in exposure. VBCA charges 0.08%/yr vs 0.03%/yr for BND.

Performance

VBCA vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2027 Corporate Bond ETF (VBCA) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCA

• 1D: 0.05%
• 1M: 0.33%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BND

• 1D: 0.11%
• 1M: 0.64%
• YTD: 0.49%
• 6M: 0.57%
• 1Y: 4.23%
• 3Y*: 3.96%
• 5Y*: 0.05%
• 10Y*: 1.56%

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

VBCA vs. BND - Yearly Performance Comparison

	2026 (YTD)
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	1.08%
BND Vanguard Total Bond Market ETF	0.57%

Correlation

The correlation between VBCA and BND is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 26, 2026	0.80

Return for Risk

VBCA vs. BND — Risk / Return Rank

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

VBCA

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

BND

BND Risk / Return Rank: 32
BND Sharpe Ratio Rank: 32
BND Sortino Ratio Rank: 33
BND Omega Ratio Rank: 30
BND Calmar Ratio Rank: 33
BND Martin Ratio Rank: 32

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.

VBCA vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2027 Corporate Bond ETF (VBCA) 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.

	VBCA	BND	Difference
Sharpe ratio: Return per unit of total volatility	—	1.14	—
Sortino ratio: Return per unit of downside risk	—	1.70	—
Omega ratio: Gain probability vs. loss probability	—	1.20	—
Calmar ratio: Return relative to maximum drawdown	—	1.59	—
Martin ratio: Return relative to average drawdown	—	4.52	—

Drawdowns

VBCA vs. BND - Drawdown Comparison

The maximum VBCA drawdown since its inception was -0.19%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VBCA and BND.

Drawdown Indicators

	VBCA	BND	Difference
Max Drawdown Largest peak-to-trough decline	-0.19%	-18.58%	+18.39%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.68%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-5.92%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-17.91%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.58%	—
Current Drawdown Current decline from peak	-0.01%	-2.15%	+2.14%
Average Drawdown Average peak-to-trough decline	-0.05%	-3.06%	+3.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.94%	—

Volatility

Volatility by Period

	VBCA	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.08%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.77%	—
Volatility (1Y) Calculated over the trailing 1-year period	0.94%	3.74%	-2.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.94%	6.03%	-5.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.94%	5.53%	-4.59%

VBCA vs. BND - Expense Ratio Comparison

VBCA has a 0.08% 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

VBCA vs. BND - Dividend Comparison

VBCA's dividend yield for the trailing twelve months is around 0.42%, less 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%
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	0.42%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VBCA and BND in my portfolio?

VBCA and BND have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBCA or BND?

On fees, BND is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCA or BND?

BND is cheaper with a 0.03% expense ratio, compared with 0.08% for VBCA.

Which ETF pays a higher dividend yield, VBCA or BND?

BND has the higher dividend yield at 3.96%, compared with 0.42% for VBCA.

What is the main difference between VBCA and BND?

VBCA is categorized as Corporate Bonds, while BND is Total Bond Market. VBCA tracks ICE 2027 Maturity US Corporate Constrained Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.08% for VBCA and 0.03% for BND.