VBU.NEO vs. BOND

Last updated Jun 26, 2026

VBU.NEO (Vanguard U.S. Aggregate Bond Index ETF) and BOND (PIMCO Active Bond ETF) are both exchange-traded funds - VBU.NEO is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Bond Index (CAD Hedged), while BOND is a Intermediate Core-Plus Bond fund actively managed by PIMCO. VBU.NEO is passively managed, while BOND is actively managed. Over the past 10 years, VBU.NEO returned 0.70%/yr vs 3.12%/yr for BOND. At a 0.40 correlation, their price movements are largely independent. VBU.NEO charges 0.22%/yr vs 0.54%/yr for BOND.

Performance

VBU.NEO vs. BOND - 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 PIMCO Active Bond ETF (BOND). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VBU.NEO is traded in CAD, while BOND is traded in USD. To make them comparable, the BOND 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 BOND's 5.40% return. Over the past 10 years, VBU.NEO has underperformed BOND with an annualized return of 0.70%, while BOND has yielded a comparatively higher 3.12% 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%

BOND

• 1D: 0.27%
• 1M: 4.25%
• YTD: 5.40%
• 6M: 5.34%
• 1Y: 9.90%
• 3Y*: 7.90%
• 5Y*: 3.57%
• 10Y*: 3.12%

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

VBU.NEO vs. BOND - 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%
BOND PIMCO Active Bond ETF	5.40%	3.44%	11.47%	3.95%	-9.15%	-0.82%	5.24%	4.07%	8.49%	-2.34%

Correlation

The correlation between VBU.NEO and BOND is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Jun 30, 2014	0.40

The correlation between VBU.NEO and BOND shifts across timeframes, from 0.40 (all time) to 0.58 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VBU.NEO vs. BOND — 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

BOND

BOND Risk / Return Rank: 47
BOND Sharpe Ratio Rank: 49
BOND Sortino Ratio Rank: 51
BOND Omega Ratio Rank: 48
BOND Calmar Ratio Rank: 45
BOND Martin Ratio Rank: 42

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. BOND - 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 PIMCO Active Bond ETF (BOND). 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	BOND	Difference
Sharpe ratio: Return per unit of total volatility	0.52	1.59	-1.07
Sortino ratio: Return per unit of downside risk	0.77	2.34	-1.57
Omega ratio: Gain probability vs. loss probability	1.10	1.28	-0.17
Calmar ratio: Return relative to maximum drawdown	0.80	2.43	-1.63
Martin ratio: Return relative to average drawdown	2.07	5.40	-3.33

VBU.NEO vs. BOND - Sharpe Ratio Comparison

The current VBU.NEO Sharpe Ratio is 0.52, which is lower than the BOND Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of VBU.NEO and BOND, 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. BOND - Drawdown Comparison

The maximum VBU.NEO drawdown since its inception was -19.34%, roughly equal to the maximum BOND drawdown of -18.46%. Use the drawdown chart below to compare losses from any high point for VBU.NEO and BOND.

Drawdown Indicators

	VBU.NEO	BOND	Difference
Max Drawdown Largest peak-to-trough decline	-19.34%	-18.46%	-0.88%
Max Drawdown (1Y) Largest decline over 1 year	-3.08%	-4.09%	+1.01%
Max Drawdown (3Y) Largest decline over 3 years	-5.94%	-6.71%	+0.77%
Max Drawdown (5Y) Largest decline over 5 years	-18.44%	-14.79%	-3.65%
Max Drawdown (10Y) Largest decline over 10 years	-19.34%	-18.46%	-0.88%
Current Drawdown Current decline from peak	-7.41%	0.00%	-7.41%
Average Drawdown Average peak-to-trough decline	-5.31%	-4.99%	-0.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.18%	1.84%	-0.66%

Volatility

VBU.NEO vs. BOND - Volatility Comparison

The current volatility for Vanguard U.S. Aggregate Bond Index ETF (VBU.NEO) is 1.25%, while PIMCO Active Bond ETF (BOND) has a volatility of 1.84%. This indicates that VBU.NEO experiences smaller price fluctuations and is considered to be less risky than BOND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBU.NEO	BOND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	1.84%	-0.59%
Volatility (6M) Calculated over the trailing 6-month period	3.67%	4.46%	-0.79%
Volatility (1Y) Calculated over the trailing 1-year period	4.73%	6.26%	-1.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.30%	8.55%	-2.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.95%	8.32%	-2.37%

VBU.NEO vs. BOND - Expense Ratio Comparison

VBU.NEO has a 0.22% expense ratio, which is lower than BOND's 0.54% expense ratio.

Dividends

VBU.NEO vs. BOND - Dividend Comparison

VBU.NEO's dividend yield for the trailing twelve months is around 3.62%, less than BOND's 5.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BOND PIMCO Active Bond ETF	5.14%	5.11%	5.02%	4.06%	3.44%	2.58%	2.66%	3.38%	3.18%	2.87%	2.85%	4.14%
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 BOND in my portfolio?

VBU.NEO and BOND 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 BOND?

On fees, VBU.NEO is cheaper at 0.22% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBU.NEO or BOND?

VBU.NEO is cheaper with a 0.22% expense ratio, compared with 0.54% for BOND.

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

VBU.NEO is categorized as Total Bond Market, while BOND is Intermediate Core-Plus Bond. They also come from different issuers: Vanguard and PIMCO. Their fees differ too: 0.22% for VBU.NEO and 0.54% for BOND.