VBIRX vs. VFWAX

Last updated Jun 13, 2026

VBIRX (Vanguard Short-Term Bond Index Fund Admiral Shares) and VFWAX (Vanguard FTSE All-World ex-US Index Fund Admiral Shares) are both mutual funds - VBIRX is a Total Bond Market fund managed by Vanguard, while VFWAX is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Over the past 10 years, VBIRX returned 1.91%/yr vs 10.14%/yr for VFWAX. At a correlation of -0.03, they often move in opposite directions. VBIRX charges 0.07%/yr vs 0.11%/yr for VFWAX.

Performance

VBIRX vs. VFWAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Bond Index Fund Admiral Shares (VBIRX) and Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBIRX achieves a 0.30% return, which is significantly lower than VFWAX's 13.24% return. Over the past 10 years, VBIRX has underperformed VFWAX with an annualized return of 1.91%, while VFWAX has yielded a comparatively higher 10.14% annualized return.

VBIRX

• 1D: 0.20%
• 1M: 0.25%
• YTD: 0.30%
• 6M: 0.83%
• 1Y: 3.74%
• 3Y*: 4.45%
• 5Y*: 1.61%
• 10Y*: 1.91%

VFWAX

• 1D: 3.19%
• 1M: 0.27%
• YTD: 13.24%
• 6M: 15.08%
• 1Y: 29.72%
• 3Y*: 18.68%
• 5Y*: 8.37%
• 10Y*: 10.14%

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

VBIRX vs. VFWAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBIRX Vanguard Short-Term Bond Index Fund Admiral Shares	0.30%	6.09%	3.75%	4.87%	-5.63%	-1.20%	4.69%	4.86%	1.37%	1.18%
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	13.24%	32.32%	5.43%	15.55%	-15.51%	8.08%	11.34%	21.53%	-13.97%	27.20%

Correlation

The correlation between VBIRX and VFWAX is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (10Y) Calculated over the trailing 10-year period	0.03
Correlation (All Time) Calculated using the full available price history since Sep 27, 2011	-0.03

The correlation between VBIRX and VFWAX shifts across timeframes, from -0.03 (all time) to 0.31 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VBIRX vs. VFWAX — Risk / Return Rank

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

VBIRX

VBIRX Risk / Return Rank: 58
VBIRX Sharpe Ratio Rank: 52
VBIRX Sortino Ratio Rank: 72
VBIRX Omega Ratio Rank: 60
VBIRX Calmar Ratio Rank: 60
VBIRX Martin Ratio Rank: 44

VFWAX

VFWAX Risk / Return Rank: 65
VFWAX Sharpe Ratio Rank: 67
VFWAX Sortino Ratio Rank: 63
VFWAX Omega Ratio Rank: 67
VFWAX Calmar Ratio Rank: 66
VFWAX Martin Ratio Rank: 63

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.

VBIRX vs. VFWAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund Admiral Shares (VBIRX) and Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX). 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.

	VBIRX	VFWAX	Difference
Sharpe ratio: Return per unit of total volatility	1.66	1.88	-0.22
Sortino ratio: Return per unit of downside risk	2.81	2.57	+0.24
Omega ratio: Gain probability vs. loss probability	1.33	1.35	-0.02
Calmar ratio: Return relative to maximum drawdown	2.43	2.54	-0.11
Martin ratio: Return relative to average drawdown	7.64	9.81	-2.17

VBIRX vs. VFWAX - Sharpe Ratio Comparison

The current VBIRX Sharpe Ratio is 1.66, which is comparable to the VFWAX Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of VBIRX and VFWAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VBIRX vs. VFWAX - Drawdown Comparison

The maximum VBIRX drawdown since its inception was -8.69%, smaller than the maximum VFWAX drawdown of -34.93%. Use the drawdown chart below to compare losses from any high point for VBIRX and VFWAX.

Drawdown Indicators

	VBIRX	VFWAX	Difference
Max Drawdown Largest peak-to-trough decline	-8.69%	-34.93%	+26.24%
Max Drawdown (1Y) Largest decline over 1 year	-1.54%	-11.34%	+9.80%
Max Drawdown (3Y) Largest decline over 3 years	-1.55%	-13.25%	+11.70%
Max Drawdown (5Y) Largest decline over 5 years	-8.64%	-29.30%	+20.66%
Max Drawdown (10Y) Largest decline over 10 years	-8.69%	-34.93%	+26.24%
Current Drawdown Current decline from peak	-0.63%	-2.19%	+1.56%
Average Drawdown Average peak-to-trough decline	-0.99%	-7.18%	+6.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	2.93%	-2.44%

Volatility

VBIRX vs. VFWAX - Volatility Comparison

The current volatility for Vanguard Short-Term Bond Index Fund Admiral Shares (VBIRX) is 0.72%, while Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) has a volatility of 6.53%. This indicates that VBIRX experiences smaller price fluctuations and is considered to be less risky than VFWAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBIRX	VFWAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.72%	6.53%	-5.81%
Volatility (6M) Calculated over the trailing 6-month period	1.61%	13.17%	-11.56%
Volatility (1Y) Calculated over the trailing 1-year period	2.26%	15.30%	-13.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.97%	15.36%	-12.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.40%	16.13%	-13.73%

VBIRX vs. VFWAX - Expense Ratio Comparison

VBIRX has a 0.07% expense ratio, which is lower than VFWAX's 0.11% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBIRX vs. VFWAX - Dividend Comparison

VBIRX's dividend yield for the trailing twelve months is around 3.99%, more than VFWAX's 2.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBIRX Vanguard Short-Term Bond Index Fund Admiral Shares	3.99%	3.83%	3.37%	2.41%	1.46%	1.22%	1.77%	2.24%	2.03%	1.66%	1.50%	1.41%
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	2.60%	3.05%	3.20%	3.28%	3.07%	3.03%	1.97%	3.07%	3.24%	2.67%	2.96%	2.95%

Frequently Asked Questions

Can I hold both VBIRX and VFWAX in my portfolio?

VBIRX and VFWAX have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBIRX or VFWAX?

VFWAX has higher volatility (6.53%) compared to VBIRX (0.72%). In terms of maximum drawdown, VBIRX dropped -8.69% vs VFWAX's -34.93%.

Which has better risk-adjusted returns?

VFWAX currently has the higher Sharpe Ratio (1.88 vs 1.66), 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.