VBITX vs. PBDIX
VBITX (Vanguard Short-Term Bond Index Fund Institutional Shares) and PBDIX (T. Rowe Price QM U.S. Bond Index Fund) are both Total Bond Market funds. Over the past 10 years, VBITX returned 1.89%/yr vs 1.86%/yr for PBDIX. A 0.80 correlation means they provide meaningful diversification when combined. VBITX charges 0.05%/yr vs 0.23%/yr for PBDIX.
Performance
VBITX vs. PBDIX - Performance Comparison
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Returns By Period
In the year-to-date period, VBITX achieves a 0.21% return, which is significantly higher than PBDIX's -0.01% return. Both investments have delivered pretty close results over the past 10 years, with VBITX having a 1.89% annualized return and PBDIX not far behind at 1.86%.
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%
PBDIX
- 1D
- -0.21%
- 1M
- 0.05%
- YTD
- -0.01%
- 6M
- 0.62%
- 1Y
- 5.91%
- 3Y*
- 4.77%
- 5Y*
- 0.40%
- 10Y*
- 1.86%
VBITX vs. PBDIX - 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% |
PBDIX T. Rowe Price QM U.S. Bond Index Fund | -0.01% | 8.71% | 2.66% | 6.02% | -14.24% | -1.45% | 8.17% | 8.69% | -0.01% | 3.83% |
Correlation
The correlation between VBITX and PBDIX 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 | 0.81 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.83 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.81 |
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011 | 0.80 |
The correlation between VBITX and PBDIX has been stable across timeframes, ranging from 0.78 to 0.83 - a consistent structural relationship.
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Return for Risk
VBITX vs. PBDIX — Risk / Return Rank
VBITX
PBDIX
VBITX vs. PBDIX - 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 T. Rowe Price QM U.S. Bond Index Fund (PBDIX). 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 | PBDIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.01 | ||
| Sortino ratioReturn per unit of downside risk | +0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.29 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.38 | 2.20 | +0.18 |
| Martin ratioReturn relative to average drawdown | 7.79 | 6.43 | +1.36 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VBITX | PBDIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.61 | 1.60 | +0.01 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.52 | 0.07 | +0.45 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.79 | 0.38 | +0.41 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.78 | 0.85 | -0.06 |
Drawdowns
VBITX vs. PBDIX - Drawdown Comparison
The maximum VBITX drawdown since its inception was -8.65%, smaller than the maximum PBDIX drawdown of -19.20%. Use the drawdown chart below to compare losses from any high point for VBITX and PBDIX.
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Drawdown Indicators
| VBITX | PBDIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.65% | -19.20% | +10.55% |
Max Drawdown (1Y)Largest decline over 1 year | -1.54% | -3.08% | +1.54% |
Max Drawdown (3Y)Largest decline over 3 years | -1.54% | -6.19% | +4.65% |
Max Drawdown (5Y)Largest decline over 5 years | -8.61% | -19.10% | +10.49% |
Max Drawdown (10Y)Largest decline over 10 years | -8.65% | -19.20% | +10.55% |
Current DrawdownCurrent decline from peak | -0.72% | -1.80% | +1.08% |
Average DrawdownAverage peak-to-trough decline | -1.18% | -2.45% | +1.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.47% | 1.04% | -0.57% |
Volatility
VBITX vs. PBDIX - Volatility Comparison
The current volatility for Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) is 0.71%, while T. Rowe Price QM U.S. Bond Index Fund (PBDIX) has a volatility of 1.44%. This indicates that VBITX experiences smaller price fluctuations and is considered to be less risky than PBDIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBITX | PBDIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.71% | 1.44% | -0.73% |
Volatility (6M)Calculated over the trailing 6-month period | 1.61% | 3.10% | -1.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.27% | 4.22% | -1.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.96% | 6.06% | -3.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.40% | 4.99% | -2.59% |
VBITX vs. PBDIX - Expense Ratio Comparison
VBITX has a 0.05% expense ratio, which is lower than PBDIX's 0.23% 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
VBITX vs. PBDIX - Dividend Comparison
VBITX's dividend yield for the trailing twelve months is around 4.02%, less than PBDIX's 5.70% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PBDIX T. Rowe Price QM U.S. Bond Index Fund | 5.70% | 5.59% | 5.17% | 4.00% | 2.01% | 1.84% | 3.59% | 3.18% | 2.94% | 2.75% | 2.82% | 2.99% |
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
VBITX and PBDIX 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.
PBDIX has higher volatility (1.44%) compared to VBITX (0.71%). In terms of maximum drawdown, VBITX dropped -8.65% vs PBDIX's -19.20%.
VBITX currently has the higher Sharpe Ratio (1.61 vs 1.60), 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.
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