VCEB vs. BND
VCEB (Vanguard ESG U.S. Corporate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VCEB is a Corporate Bonds fund tracking the Bloomberg Barclays MSCI US Corp SRI Select Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 5 years, VCEB returned -0.23%/yr vs -0.42%/yr for BND. Their correlation of 0.94 means they have usually moved in the same direction. VCEB charges 0.12%/yr vs 0.03%/yr for BND.
Performance
VCEB vs. BND - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VCEB achieves a -0.91% return, which is significantly lower than BND's -0.54% return.
VCEB
- 1D
- -0.03%
- 1M
- -1.57%
- 6M
- -1.15%
- YTD
- -0.91%
- 1Y
- 1.38%
- 3Y*
- 4.64%
- 5Y*
- -0.23%
- 10Y*
- —
- ALL TIME*
- 0.11%
BND
- 1D
- -0.26%
- 1M
- -1.20%
- 6M
- -0.75%
- YTD
- -0.54%
- 1Y
- 1.75%
- 3Y*
- 3.92%
- 5Y*
- -0.42%
- 10Y*
- 1.36%
- ALL TIME*
- 2.99%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $451.00M | $507.49M | $592.68M | |
| $3.14M | $4.62M | $5.43M |
VCEB vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
VCEB Vanguard ESG U.S. Corporate Bond ETF | -0.91% | 7.48% | 2.23% | 8.52% | -15.15% | -1.99% | 2.45% |
BND Vanguard Total Bond Market ETF | -0.54% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 0.80% |
Correlation
The correlation between VCEB and BND is 0.94, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.94 |
Correlation (3Y) Balances recent behavior with more history. | 0.95 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.94 |
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020 | 0.94 |
The correlation between VCEB and BND has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VCEB vs. BND — Risk / Return Rank
VCEB
BND
VCEB vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard ESG U.S. Corporate Bond ETF (VCEB) 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.
| VCEB | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.20 | ||
| Sortino ratioReturn per unit of downside risk | -0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.12 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 0.77 | 0.99 | -0.22 |
| Martin ratioReturn relative to average drawdown | 2.01 | 2.48 | -0.46 |
Loading charts...
Drawdowns
VCEB vs. BND - Drawdown Comparison
The maximum VCEB drawdown since its inception was -21.60%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VCEB and BND.
Loading charts...
Drawdown Indicators
| VCEB | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.60% | -18.58% | -3.02% |
Max Drawdown (1Y)Largest decline over 1 year | -2.82% | -2.68% | -0.14% |
Max Drawdown (3Y)Largest decline over 3 years | -5.00% | -4.81% | -0.19% |
Max Drawdown (5Y)Largest decline over 5 years | -21.39% | -17.91% | -3.48% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | -2.26% | -3.15% | +0.89% |
Average DrawdownAverage peak-to-trough decline | -7.46% | -3.06% | -4.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.07% | 1.07% | 0.00% |
Volatility
VCEB vs. BND - Volatility Comparison
Vanguard ESG U.S. Corporate Bond ETF (VCEB) has a higher volatility of 1.12% compared to Vanguard Total Bond Market ETF (BND) at 0.98%. This indicates that VCEB's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VCEB | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.12% | 0.98% | +0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 3.33% | 2.90% | +0.43% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.20% | 3.70% | +0.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.84% | 6.03% | +0.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.60% | 5.53% | +1.07% |
VCEB vs. BND - Expense Ratio Comparison
VCEB has a 0.12% 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
VCEB vs. BND - Dividend Comparison
VCEB's dividend yield for the trailing twelve months is around 4.73%, more than BND's 4.03% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.69% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VCEB Vanguard ESG U.S. Corporate Bond ETF | 4.33% | 4.57% | 4.47% | 3.70% | 2.84% | 1.69% | 0.43% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.94, VCEB and BND move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VCEB has higher volatility (1.12%) compared to BND (0.98%). In terms of maximum drawdown, VCEB dropped -21.60% vs BND's -18.58%.
On 5-year performance, VCEB leads with -0.23% vs -0.42% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VCEB has performed better with a -0.23% return vs -0.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.12% for VCEB.
VCEB has the higher dividend yield at 4.33%, compared with 3.69% for BND.
VCEB is categorized as Corporate Bonds, while BND is Total Bond Market. VCEB tracks Bloomberg Barclays MSCI US Corp SRI Select Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.12% for VCEB and 0.03% for BND.
BND currently has the higher Sharpe Ratio (0.72 vs 0.51), 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.
Find the right allocation for VCEB and BND
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer