VBMFX vs. BND
Compare and contrast key facts about Vanguard Total Bond Market Index Fund (VBMFX) and Vanguard Total Bond Market ETF (BND).
VBMFX is managed by Vanguard. It was launched on Dec 11, 1986. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VBMFX or BND.
Key characteristics
| VBMFX | BND | |
|---|---|---|
| YTD Return | 1.27% | 1.59% |
| 1Y Return | 7.71% | 7.87% |
| 3Y Return (Ann) | -2.51% | -2.37% |
| 5Y Return (Ann) | -0.40% | -0.27% |
| 10Y Return (Ann) | 1.25% | 1.41% |
| Sharpe Ratio | 1.33 | 1.34 |
| Sortino Ratio | 1.98 | 1.98 |
| Omega Ratio | 1.24 | 1.24 |
| Calmar Ratio | 0.48 | 0.50 |
| Martin Ratio | 4.59 | 4.75 |
| Ulcer Index | 1.68% | 1.65% |
| Daily Std Dev | 5.78% | 5.84% |
| Max Drawdown | -19.21% | -18.84% |
| Current Drawdown | -9.66% | -9.17% |
Correlation
The correlation between VBMFX and BND is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VBMFX vs. BND - Performance Comparison
In the year-to-date period, VBMFX achieves a 1.27% return, which is significantly lower than BND's 1.59% return. Over the past 10 years, VBMFX has underperformed BND with an annualized return of 1.25%, while BND has yielded a comparatively higher 1.41% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VBMFX vs. BND - Expense Ratio Comparison
VBMFX has a 0.15% 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%.
Risk-Adjusted Performance
VBMFX vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market Index Fund (VBMFX) 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.
Dividends
VBMFX vs. BND - Dividend Comparison
VBMFX's dividend yield for the trailing twelve months is around 3.48%, less than BND's 3.58% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VBMFX Vanguard Total Bond Market Index Fund | 3.48% | 3.00% | 2.42% | 1.81% | 2.14% | 2.64% | 2.67% | 2.43% | 2.38% | 2.38% | 2.43% | 2.43% |
BND Vanguard Total Bond Market ETF | 3.58% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
VBMFX vs. BND - Drawdown Comparison
The maximum VBMFX drawdown since its inception was -19.21%, roughly equal to the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VBMFX and BND. For additional features, visit the drawdowns tool.
Volatility
VBMFX vs. BND - Volatility Comparison
Vanguard Total Bond Market Index Fund (VBMFX) and Vanguard Total Bond Market ETF (BND) have volatilities of 1.76% and 1.77%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.