VBCG vs. BND

Last updated Jun 6, 2026

VBCG (Vanguard Target Maturity 2033 Corporate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VBCG is a Corporate Bonds fund tracking the ICE 2033 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. With a 0.98 correlation, they move nearly in lockstep. VBCG charges 0.08%/yr vs 0.03%/yr for BND.

Performance

VBCG vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2033 Corporate Bond ETF (VBCG) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCG

• 1D: -0.56%
• 1M: -0.75%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BND

• 1D: -0.45%
• 1M: -0.64%
• YTD: -0.05%
• 6M: 0.11%
• 1Y: 4.33%
• 3Y*: 3.80%
• 5Y*: 0.02%
• 10Y*: 1.56%

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

VBCG vs. BND - Yearly Performance Comparison

	2026 (YTD)
VBCG Vanguard Target Maturity 2033 Corporate Bond ETF	1.02%
BND Vanguard Total Bond Market ETF	0.62%

Correlation

The correlation between VBCG and BND is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 27, 2026	0.98

Return for Risk

VBCG vs. BND — Risk / Return Rank

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

BND

BND Risk / Return Rank: 33
BND Sharpe Ratio Rank: 33
BND Sortino Ratio Rank: 33
BND Omega Ratio Rank: 30
BND Calmar Ratio Rank: 34
BND Martin Ratio Rank: 33

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.

VBCG vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2033 Corporate Bond ETF (VBCG) 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.

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

Sharpe Ratios by Period

	VBCG	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.16	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.00	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.28	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.19	0.58	+0.60

Drawdowns

VBCG vs. BND - Drawdown Comparison

The maximum VBCG drawdown since its inception was -1.90%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VBCG and BND.

Drawdown Indicators

	VBCG	BND	Difference
Max Drawdown Largest peak-to-trough decline	-1.90%	-18.58%	+16.68%
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	-1.06%	-2.67%	+1.61%
Average Drawdown Average peak-to-trough decline	-0.52%	-3.06%	+2.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.89%	—

Volatility

Volatility by Period

	VBCG	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.23%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.70%	—
Volatility (1Y) Calculated over the trailing 1-year period	4.58%	3.76%	+0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.58%	6.02%	-1.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.58%	5.53%	-0.95%

VBCG vs. BND - Expense Ratio Comparison

VBCG 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

VBCG vs. BND - Dividend Comparison

VBCG's dividend yield for the trailing twelve months is around 0.84%, less than BND's 3.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.98%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VBCG Vanguard Target Maturity 2033 Corporate Bond ETF	0.84%	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 VBCG and BND in my portfolio?

With a correlation of 0.98, VBCG and BND move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, VBCG 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, VBCG or BND?

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

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

BND has the higher dividend yield at 3.98%, compared with 0.84% for VBCG.

What is the main difference between VBCG and BND?

VBCG is categorized as Corporate Bonds, while BND is Total Bond Market. VBCG tracks ICE 2033 Maturity US Corporate Constrained Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.08% for VBCG and 0.03% for BND.