VBU.NEO vs. BND

Last updated Jun 26, 2026

VBU.NEO (Vanguard U.S. Aggregate Bond Index ETF) and BND (Vanguard Total Bond Market ETF) are both Total Bond Market funds from Vanguard - VBU.NEO tracks the Bloomberg U.S. Aggregate Float Adjusted Bond Index (CAD Hedged) while BND tracks the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, VBU.NEO returned 0.70%/yr vs 2.47%/yr for BND. At a 0.44 correlation, their price movements are largely independent. VBU.NEO charges 0.22%/yr vs 0.03%/yr for BND.

Performance

VBU.NEO vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard U.S. Aggregate Bond Index ETF (VBU.NEO) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VBU.NEO is traded in CAD, while BND is traded in USD. To make them comparable, the BND values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VBU.NEO achieves a 0.13% return, which is significantly lower than BND's 5.00% return. Over the past 10 years, VBU.NEO has underperformed BND with an annualized return of 0.70%, while BND has yielded a comparatively higher 2.47% annualized return.

VBU.NEO

• 1D: 0.28%
• 1M: 0.76%
• YTD: 0.13%
• 6M: -0.05%
• 1Y: 2.43%
• 3Y*: 2.52%
• 5Y*: -0.93%
• 10Y*: 0.70%

BND

• 1D: 0.25%
• 1M: 4.02%
• YTD: 5.00%
• 6M: 4.90%
• 1Y: 8.29%
• 3Y*: 6.84%
• 5Y*: 3.13%
• 10Y*: 2.47%

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

VBU.NEO vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBU.NEO Vanguard U.S. Aggregate Bond Index ETF	0.13%	4.92%	0.11%	4.79%	-13.68%	-2.06%	7.26%	7.77%	-1.09%	3.47%
BND Vanguard Total Bond Market ETF	5.00%	2.19%	9.97%	3.14%	-7.61%	-1.91%	5.16%	4.35%	8.28%	-3.45%

Correlation

The correlation between VBU.NEO and BND is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Jun 30, 2014	0.44

The correlation between VBU.NEO and BND shifts across timeframes, from 0.44 (all time) to 0.61 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VBU.NEO vs. BND — Risk / Return Rank

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

VBU.NEO

VBU.NEO Risk / Return Rank: 17
VBU.NEO Sharpe Ratio Rank: 17
VBU.NEO Sortino Ratio Rank: 15
VBU.NEO Omega Ratio Rank: 16
VBU.NEO Calmar Ratio Rank: 19
VBU.NEO Martin Ratio Rank: 19

BND

BND Risk / Return Rank: 36
BND Sharpe Ratio Rank: 37
BND Sortino Ratio Rank: 38
BND Omega Ratio Rank: 34
BND Calmar Ratio Rank: 37
BND Martin Ratio Rank: 35

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.

VBU.NEO vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Aggregate Bond Index ETF (VBU.NEO) 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.

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.

	VBU.NEO	BND	Difference
Sharpe ratio: Return per unit of total volatility	0.52	1.38	-0.86
Sortino ratio: Return per unit of downside risk	0.77	2.05	-1.28
Omega ratio: Gain probability vs. loss probability	1.10	1.24	-0.13
Calmar ratio: Return relative to maximum drawdown	0.80	1.83	-1.03
Martin ratio: Return relative to average drawdown	2.07	4.07	-2.00

VBU.NEO vs. BND - Sharpe Ratio Comparison

The current VBU.NEO Sharpe Ratio is 0.52, which is lower than the BND Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of VBU.NEO and BND, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VBU.NEO vs. BND - Drawdown Comparison

The maximum VBU.NEO drawdown since its inception was -19.34%, roughly equal to the maximum BND drawdown of -20.35%. Use the drawdown chart below to compare losses from any high point for VBU.NEO and BND.

Drawdown Indicators

	VBU.NEO	BND	Difference
Max Drawdown Largest peak-to-trough decline	-19.34%	-20.35%	+1.01%
Max Drawdown (1Y) Largest decline over 1 year	-3.08%	-4.56%	+1.48%
Max Drawdown (3Y) Largest decline over 3 years	-5.94%	-6.41%	+0.47%
Max Drawdown (5Y) Largest decline over 5 years	-18.44%	-13.53%	-4.91%
Max Drawdown (10Y) Largest decline over 10 years	-19.34%	-20.35%	+1.01%
Current Drawdown Current decline from peak	-7.41%	0.00%	-7.41%
Average Drawdown Average peak-to-trough decline	-5.31%	-7.06%	+1.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.18%	2.04%	-0.86%

Volatility

VBU.NEO vs. BND - Volatility Comparison

The current volatility for Vanguard U.S. Aggregate Bond Index ETF (VBU.NEO) is 1.25%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.65%. This indicates that VBU.NEO experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBU.NEO	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	1.65%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	3.67%	4.19%	-0.52%
Volatility (1Y) Calculated over the trailing 1-year period	4.73%	6.03%	-1.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.30%	8.72%	-2.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.95%	8.65%	-2.70%

VBU.NEO vs. BND - Expense Ratio Comparison

VBU.NEO has a 0.22% 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%.

Dividends

VBU.NEO vs. BND - Dividend Comparison

VBU.NEO's dividend yield for the trailing twelve months is around 3.62%, less than BND's 3.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.94%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VBU.NEO Vanguard U.S. Aggregate Bond Index ETF	3.62%	3.50%	3.34%	2.93%	2.32%	1.87%	2.15%	2.36%	2.24%	2.20%	2.18%	2.23%

Frequently Asked Questions

Can I hold both VBU.NEO and BND in my portfolio?

VBU.NEO and BND have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBU.NEO or BND?

On fees, BND is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBU.NEO or BND?

BND is cheaper with a 0.03% expense ratio, compared with 0.22% for VBU.NEO.

What is the main difference between VBU.NEO and BND?

VBU.NEO tracks Bloomberg U.S. Aggregate Float Adjusted Bond Index (CAD Hedged), while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.22% for VBU.NEO and 0.03% for BND.