VBTIX vs. BNDW
VBTIX (Vanguard Total Bond Market Index Fund Institutional Shares) and BNDW (Vanguard Total World Bond ETF) are both funds - VBTIX is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index. Both are passively managed. Over the past 5 years, VBTIX returned 0.04%/yr vs 0.27%/yr for BNDW. Their correlation of 0.90 suggests significant overlap in exposure. VBTIX charges 0.03%/yr vs 0.05%/yr for BNDW.
Performance
VBTIX vs. BNDW - Performance Comparison
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Returns By Period
In the year-to-date period, VBTIX achieves a 0.12% return, which is significantly lower than BNDW's 0.88% return.
VBTIX
- 1D
- -0.31%
- 1M
- 0.66%
- YTD
- 0.12%
- 6M
- 0.45%
- 1Y
- 4.16%
- 3Y*
- 3.95%
- 5Y*
- 0.04%
- 10Y*
- 1.50%
BNDW
- 1D
- 0.15%
- 1M
- 0.77%
- YTD
- 0.88%
- 6M
- 0.88%
- 1Y
- 3.23%
- 3Y*
- 4.10%
- 5Y*
- 0.27%
- 10Y*
- —
VBTIX vs. BNDW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VBTIX Vanguard Total Bond Market Index Fund Institutional Shares | 0.12% | 7.18% | 1.27% | 5.75% | -13.15% | -1.95% | 7.75% | 8.74% | 1.27% |
BNDW Vanguard Total World Bond ETF | 0.88% | 5.02% | 2.42% | 7.18% | -12.88% | -2.10% | 6.22% | 8.37% | 1.27% |
Correlation
The correlation between VBTIX and BNDW is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Sep 6, 2018 | 0.90 |
The correlation between VBTIX and BNDW has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.
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Return for Risk
VBTIX vs. BNDW — Risk / Return Rank
VBTIX
BNDW
VBTIX vs. BNDW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) and Vanguard Total World Bond ETF (BNDW). 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.
| VBTIX | BNDW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.15 | ||
| Sortino ratioReturn per unit of downside risk | +0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.17 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.52 | 1.20 | +0.32 |
| Martin ratioReturn relative to average drawdown | 4.30 | 3.24 | +1.06 |
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Drawdowns
VBTIX vs. BNDW - Drawdown Comparison
The maximum VBTIX drawdown since its inception was -18.90%, which is greater than BNDW's maximum drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for VBTIX and BNDW.
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Drawdown Indicators
| VBTIX | BNDW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.90% | -17.22% | -1.68% |
Max Drawdown (1Y)Largest decline over 1 year | -2.89% | -2.70% | -0.19% |
Max Drawdown (3Y)Largest decline over 3 years | -5.99% | -4.27% | -1.72% |
Max Drawdown (5Y)Largest decline over 5 years | -18.13% | -16.93% | -1.20% |
Max Drawdown (10Y)Largest decline over 10 years | -18.90% | — | — |
Current DrawdownCurrent decline from peak | -2.55% | -1.08% | -1.47% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -4.95% | +2.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.02% | 1.00% | +0.02% |
Volatility
VBTIX vs. BNDW - Volatility Comparison
Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) has a higher volatility of 1.17% compared to Vanguard Total World Bond ETF (BNDW) at 0.92%. This indicates that VBTIX's price experiences larger fluctuations and is considered to be riskier than BNDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBTIX | BNDW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.17% | 0.92% | +0.25% |
Volatility (6M)Calculated over the trailing 6-month period | 2.88% | 2.70% | +0.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.92% | 3.35% | +0.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.02% | 5.22% | +0.80% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.99% | 4.89% | +0.10% |
VBTIX vs. BNDW - Expense Ratio Comparison
VBTIX has a 0.03% expense ratio, which is lower than BNDW's 0.05% 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
VBTIX vs. BNDW - Dividend Comparison
VBTIX's dividend yield for the trailing twelve months is around 4.01%, less than BNDW's 4.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BNDW Vanguard Total World Bond ETF | 4.19% | 4.12% | 3.90% | 3.73% | 2.02% | 2.58% | 1.56% | 3.05% | 1.66% | 0.00% | 0.00% | 0.00% |
VBTIX Vanguard Total Bond Market Index Fund Institutional Shares | 4.01% | 3.88% | 3.69% | 3.12% | 2.61% | 1.81% | 2.41% | 2.75% | 2.58% | 2.56% | 2.54% | 2.84% |
Frequently Asked Questions
VBTIX and BNDW have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VBTIX has higher volatility (1.17%) compared to BNDW (0.92%). In terms of maximum drawdown, VBTIX dropped -18.90% vs BNDW's -17.22%.
VBTIX currently has the higher Sharpe Ratio (1.12 vs 0.97), 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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