VBITX vs. BND

Last updated Jun 5, 2026

VBITX (Vanguard Short-Term Bond Index Fund Institutional Shares) and BND (Vanguard Total Bond Market ETF) are both Total Bond Market funds from Vanguard. Over the past 10 years, VBITX returned 1.89%/yr vs 1.61%/yr for BND. A 0.75 correlation means they provide meaningful diversification when combined. VBITX charges 0.05%/yr vs 0.03%/yr for BND.

Performance

VBITX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBITX achieves a 0.21% return, which is significantly lower than BND's 0.41% return. Over the past 10 years, VBITX has outperformed BND with an annualized return of 1.89%, while BND has yielded a comparatively lower 1.61% annualized return.

VBITX

• 1D: -0.10%
• 1M: -0.05%
• YTD: 0.21%
• 6M: 0.55%
• 1Y: 3.45%
• 3Y*: 4.32%
• 5Y*: 1.52%
• 10Y*: 1.89%

BND

• 1D: 0.14%
• 1M: 0.23%
• YTD: 0.41%
• 6M: 0.44%
• 1Y: 4.60%
• 3Y*: 4.01%
• 5Y*: 0.11%
• 10Y*: 1.61%

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

VBITX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares	0.21%	6.11%	3.77%	4.43%	-5.61%	-1.18%	4.72%	4.89%	1.38%	1.20%
BND Vanguard Total Bond Market ETF	0.41%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%

Correlation

The correlation between VBITX and BND is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011	0.75

The correlation between VBITX and BND has been stable across timeframes, ranging from 0.75 to 0.82 - a consistent structural relationship.

Return for Risk

VBITX vs. BND — Risk / Return Rank

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

VBITX

VBITX Risk / Return Rank: 37
VBITX Sharpe Ratio Rank: 31
VBITX Sortino Ratio Rank: 42
VBITX Omega Ratio Rank: 36
VBITX Calmar Ratio Rank: 40
VBITX Martin Ratio Rank: 35

BND

BND Risk / Return Rank: 35
BND Sharpe Ratio Rank: 35
BND Sortino Ratio Rank: 36
BND Omega Ratio Rank: 33
BND Calmar Ratio Rank: 35
BND Martin Ratio Rank: 35

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.

VBITX vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) 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.

	VBITX	BND	Difference
Sharpe ratio: Return per unit of total volatility	1.61	1.24	+0.38
Sortino ratio: Return per unit of downside risk	2.73	1.84	+0.89
Omega ratio: Gain probability vs. loss probability	1.32	1.22	+0.10
Calmar ratio: Return relative to maximum drawdown	2.38	1.73	+0.65
Martin ratio: Return relative to average drawdown	7.79	5.21	+2.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBITX vs. BND - Sharpe Ratio Comparison

The current VBITX Sharpe Ratio is 1.61, which is higher than the BND Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of VBITX and BND, 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

	VBITX	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.61	1.24	+0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.02	+0.50
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	0.29	+0.50
Sharpe Ratio (All Time) Calculated using the full available price history	0.78	0.59	+0.20

Drawdowns

VBITX vs. BND - Drawdown Comparison

The maximum VBITX drawdown since its inception was -8.65%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VBITX and BND.

Drawdown Indicators

	VBITX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-8.65%	-18.58%	+9.93%
Max Drawdown (1Y) Largest decline over 1 year	-1.54%	-2.68%	+1.14%
Max Drawdown (3Y) Largest decline over 3 years	-1.54%	-5.92%	+4.38%
Max Drawdown (5Y) Largest decline over 5 years	-8.61%	-17.91%	+9.30%
Max Drawdown (10Y) Largest decline over 10 years	-8.65%	-18.58%	+9.93%
Current Drawdown Current decline from peak	-0.72%	-2.23%	+1.51%
Average Drawdown Average peak-to-trough decline	-1.18%	-3.06%	+1.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.47%	0.89%	-0.42%

Volatility

VBITX vs. BND - Volatility Comparison

The current volatility for Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) is 0.71%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.22%. This indicates that VBITX experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBITX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.71%	1.22%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	1.61%	2.66%	-1.05%
Volatility (1Y) Calculated over the trailing 1-year period	2.27%	3.78%	-1.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.96%	6.02%	-3.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.40%	5.53%	-3.13%

VBITX vs. BND - Expense Ratio Comparison

VBITX has a 0.05% 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

VBITX vs. BND - Dividend Comparison

VBITX's dividend yield for the trailing twelve months is around 4.02%, more 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%
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares	4.02%	3.85%	3.39%	1.99%	1.48%	1.24%	1.80%	2.26%	2.03%	1.69%	1.52%	1.44%

Frequently Asked Questions

Can I hold both VBITX and BND in my portfolio?

VBITX and BND have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBITX or BND?

BND has higher volatility (1.22%) compared to VBITX (0.71%). In terms of maximum drawdown, VBITX dropped -8.65% vs BND's -18.58%.

Which has better risk-adjusted returns?

VBITX currently has the higher Sharpe Ratio (1.61 vs 1.24), 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.