VBND vs. FALN
VBND (Vident U.S. Bond Strategy ETF) and FALN (iShares Fallen Angels USD Bond ETF) are both exchange-traded funds - VBND is a Intermediate Core-Plus Bond fund tracking the Vident Core U.S. Bond Strategy Index, while FALN is a High Yield Bonds fund tracking the Bloomberg US High Yield Fallen Angel 3% Capped Index. Both are passively managed. Over the past 10 years, VBND returned 1.29%/yr vs 6.24%/yr for FALN. Their 0.36 correlation means their historical movements had little consistent relationship. VBND charges 0.41%/yr vs 0.25%/yr for FALN.
Performance
VBND vs. FALN - Performance Comparison
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Returns By Period
In the year-to-date period, VBND achieves a -0.59% return, which is significantly lower than FALN's 1.86% return. Over the past 10 years, VBND has underperformed FALN with an annualized return of 1.29%, while FALN has yielded a comparatively higher 6.24% annualized return.
VBND
- 1D
- -0.19%
- 1M
- -1.53%
- 6M
- -0.55%
- YTD
- -0.59%
- 1Y
- 2.16%
- 3Y*
- 4.38%
- 5Y*
- -0.19%
- 10Y*
- 1.29%
- ALL TIME*
- 1.54%
FALN
- 1D
- -0.11%
- 1M
- -0.92%
- 6M
- 0.86%
- YTD
- 1.86%
- 1Y
- 6.24%
- 3Y*
- 8.53%
- 5Y*
- 3.39%
- 10Y*
- 6.24%
- ALL TIME*
- 6.52%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $23.72M | $18.39M | $26.66M | |
| $846.73K | $2.16M | $1.29M |
VBND vs. FALN - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VBND Vident U.S. Bond Strategy ETF | -0.59% | 7.31% | 1.26% | 8.16% | -14.18% | -0.43% | 5.37% | 9.50% | -0.96% | 3.15% |
FALN iShares Fallen Angels USD Bond ETF | 1.86% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
Correlation
The correlation between VBND and FALN is 0.57, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.57 |
Correlation (3Y) Balances recent behavior with more history. | 0.60 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.56 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.37 |
Correlation (All Time) Calculated using the full available price history since Jun 17, 2016 | 0.36 |
Over the past year, VBND and FALN have become more correlated (0.57) than their long-term average of 0.36, meaning their price movements have been converging.
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Return for Risk
VBND vs. FALN — Risk / Return Rank
VBND
FALN
VBND vs. FALN - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vident U.S. Bond Strategy ETF (VBND) and iShares Fallen Angels USD Bond ETF (FALN). 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.
| VBND | FALN | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.63 | ||
| Sortino ratioReturn per unit of downside risk | -0.88 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.26 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.06 | 1.57 | -0.52 |
| Martin ratioReturn relative to average drawdown | 2.72 | 6.42 | -3.70 |
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Drawdowns
VBND vs. FALN - Drawdown Comparison
The maximum VBND drawdown since its inception was -18.97%, smaller than the maximum FALN drawdown of -29.22%. Use the drawdown chart below to compare losses from any high point for VBND and FALN.
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Drawdown Indicators
| VBND | FALN | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.97% | -29.22% | +10.25% |
Max Drawdown (1Y)Largest decline over 1 year | -2.82% | -3.96% | +1.14% |
Max Drawdown (3Y)Largest decline over 3 years | -4.60% | -5.92% | +1.32% |
Max Drawdown (5Y)Largest decline over 5 years | -18.97% | -18.78% | -0.19% |
Max Drawdown (10Y)Largest decline over 10 years | -18.97% | -29.22% | +10.25% |
Current DrawdownCurrent decline from peak | -1.84% | -1.07% | -0.77% |
Average DrawdownAverage peak-to-trough decline | -4.17% | -3.28% | -0.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.09% | 0.97% | +0.12% |
Volatility
VBND vs. FALN - Volatility Comparison
Vident U.S. Bond Strategy ETF (VBND) and iShares Fallen Angels USD Bond ETF (FALN) have volatilities of 1.01% and 0.99%, 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.
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Volatility by Period
| VBND | FALN | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.01% | 0.99% | +0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 2.94% | 3.79% | -0.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.12% | 4.59% | -0.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.12% | 7.33% | -1.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.45% | 8.86% | -3.41% |
VBND vs. FALN - Expense Ratio Comparison
VBND has a 0.41% expense ratio, which is higher than FALN's 0.25% expense ratio.
Dividends
VBND vs. FALN - Dividend Comparison
VBND's dividend yield for the trailing twelve months is around 4.35%, less than FALN's 6.51% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 5.98% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 0.00% |
VBND Vident U.S. Bond Strategy ETF | 4.35% | 4.22% | 4.41% | 3.88% | 2.55% | 1.56% | 1.98% | 3.14% | 2.82% | 2.00% | 3.12% | 1.49% |
Frequently Asked Questions
VBND and FALN have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VBND has higher volatility (1.01%) compared to FALN (0.99%). In terms of maximum drawdown, VBND dropped -18.97% vs FALN's -29.22%.
On 10-year performance, FALN leads with 6.24% vs 1.29% for VBND. On fees, FALN is cheaper at 0.25% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FALN has performed better with a 6.24% return vs 1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FALN is cheaper with a 0.25% expense ratio, compared with 0.41% for VBND.
FALN has the higher dividend yield at 5.98%, compared with 4.35% for VBND.
VBND is categorized as Intermediate Core-Plus Bond, while FALN is High Yield Bonds. VBND tracks Vident Core U.S. Bond Strategy Index, while FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index. They also come from different issuers: Vident and iShares. Their fees differ too: 0.41% for VBND and 0.25% for FALN.
FALN currently has the higher Sharpe Ratio (1.36 vs 0.73), 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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