VBND vs. VTBIX

Last updated Jun 3, 2026

VBND (Vident U.S. Bond Strategy ETF) and VTBIX (Vanguard Total Bond Market II Index Fund Investor Shares) are both funds - VBND is a Intermediate Core-Plus Bond fund tracking the Vident Core U.S. Bond Strategy Index, while VTBIX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VBND returned 1.60%/yr vs 1.44%/yr for VTBIX. Their correlation of 0.83 suggests significant overlap in exposure. VBND charges 0.41%/yr vs 0.09%/yr for VTBIX.

Performance

VBND vs. VTBIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vident U.S. Bond Strategy ETF (VBND) and Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBND achieves a 0.55% return, which is significantly higher than VTBIX's 0.30% return. Over the past 10 years, VBND has outperformed VTBIX with an annualized return of 1.60%, while VTBIX has yielded a comparatively lower 1.44% annualized return.

VBND

• 1D: 0.11%
• 1M: 0.49%
• YTD: 0.55%
• 6M: 1.02%
• 1Y: 6.14%
• 3Y*: 4.80%
• 5Y*: 0.55%
• 10Y*: 1.60%

VTBIX

• 1D: 0.00%
• 1M: 0.45%
• YTD: 0.30%
• 6M: 0.22%
• 1Y: 5.14%
• 3Y*: 3.84%
• 5Y*: 0.03%
• 10Y*: 1.44%

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

VBND vs. VTBIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBND Vident U.S. Bond Strategy ETF	0.55%	7.31%	1.26%	8.16%	-14.18%	-0.43%	5.37%	9.50%	-0.96%	3.15%
VTBIX Vanguard Total Bond Market II Index Fund Investor Shares	0.30%	7.11%	1.25%	5.03%	-13.18%	-1.88%	7.47%	8.62%	-0.32%	3.53%

Correlation

The correlation between VBND and VTBIX is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Oct 17, 2014	0.83

The correlation between VBND and VTBIX shifts across timeframes, from 0.80 (1 year) to 0.90 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VBND vs. VTBIX — Risk / Return Rank

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

VBND

VBND Risk / Return Rank: 38
VBND Sharpe Ratio Rank: 39
VBND Sortino Ratio Rank: 41
VBND Omega Ratio Rank: 37
VBND Calmar Ratio Rank: 40
VBND Martin Ratio Rank: 34

VTBIX

VTBIX Risk / Return Rank: 22
VTBIX Sharpe Ratio Rank: 22
VTBIX Sortino Ratio Rank: 23
VTBIX Omega Ratio Rank: 20
VTBIX Calmar Ratio Rank: 24
VTBIX Martin Ratio Rank: 21

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.

VBND vs. VTBIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vident U.S. Bond Strategy ETF (VBND) and Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX). 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.

	VBND	VTBIX	Difference
Sharpe ratio Return per unit of total volatility	1.41	1.32	+0.09
Sortino ratio Return per unit of downside risk	2.14	2.00	+0.14
Omega ratio Gain probability vs. loss probability	1.25	1.23	+0.01
Calmar ratio Return relative to maximum drawdown	2.01	1.82	+0.19
Martin ratio Return relative to average drawdown	5.43	5.43	0.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBND vs. VTBIX - Sharpe Ratio Comparison

The current VBND Sharpe Ratio is 1.41, which is comparable to the VTBIX Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of VBND and VTBIX, 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

	VBND	VTBIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.41	1.32	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.09	0.00	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	0.29	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.27	+0.05

Drawdowns

VBND vs. VTBIX - Drawdown Comparison

The maximum VBND drawdown since its inception was -18.97%, roughly equal to the maximum VTBIX drawdown of -18.72%. Use the drawdown chart below to compare losses from any high point for VBND and VTBIX.

Drawdown Indicators

	VBND	VTBIX	Difference
Max Drawdown Largest peak-to-trough decline	-18.97%	-18.72%	-0.25%
Max Drawdown (1Y) Largest decline over 1 year	-2.82%	-2.84%	+0.02%
Max Drawdown (3Y) Largest decline over 3 years	-4.60%	-5.98%	+1.38%
Max Drawdown (5Y) Largest decline over 5 years	-18.97%	-18.11%	-0.86%
Max Drawdown (10Y) Largest decline over 10 years	-18.97%	-18.72%	-0.25%
Current Drawdown Current decline from peak	-0.71%	-3.00%	+2.29%
Average Drawdown Average peak-to-trough decline	-4.21%	-4.42%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.05%	0.95%	+0.10%

Volatility

VBND vs. VTBIX - Volatility Comparison

Vident U.S. Bond Strategy ETF (VBND) has a higher volatility of 1.51% compared to Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) at 1.33%. This indicates that VBND's price experiences larger fluctuations and is considered to be riskier than VTBIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBND	VTBIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.51%	1.33%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	2.94%	2.80%	+0.14%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	3.91%	+0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.12%	5.95%	+0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.45%	4.92%	+0.53%

VBND vs. VTBIX - Expense Ratio Comparison

VBND has a 0.41% expense ratio, which is higher than VTBIX's 0.09% expense ratio.

Dividends

VBND vs. VTBIX - Dividend Comparison

VBND's dividend yield for the trailing twelve months is around 4.22%, more than VTBIX's 3.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBND Vident U.S. Bond Strategy ETF	4.22%	4.22%	4.41%	3.88%	2.55%	1.56%	1.98%	3.14%	2.82%	2.00%	3.12%	1.49%
VTBIX Vanguard Total Bond Market II Index Fund Investor Shares	3.99%	3.88%	3.70%	2.53%	2.47%	1.75%	3.20%	2.72%	2.51%	2.43%	2.48%	2.64%

Frequently Asked Questions

Can I hold both VBND and VTBIX in my portfolio?

VBND and VTBIX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBND or VTBIX?

VBND has higher volatility (1.51%) compared to VTBIX (1.33%). In terms of maximum drawdown, VBND dropped -18.97% vs VTBIX's -18.72%.

Which has better risk-adjusted returns?

VBND currently has the higher Sharpe Ratio (1.41 vs 1.32), 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.