VCLAX vs. BND

Last updated Jun 23, 2026

VCLAX (Vanguard California Long-Term Tax-Exempt Fund Admiral Shares) and BND (Vanguard Total Bond Market ETF) are both funds - VCLAX is a Municipal Bonds fund managed by Vanguard, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 10 years, VCLAX returned 2.55%/yr vs 1.55%/yr for BND. At a 0.47 correlation, their price movements are largely independent. VCLAX charges 0.09%/yr vs 0.03%/yr for BND.

Performance

VCLAX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard California Long-Term Tax-Exempt Fund Admiral Shares (VCLAX) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCLAX achieves a 1.96% return, which is significantly higher than BND's 0.38% return. Over the past 10 years, VCLAX has outperformed BND with an annualized return of 2.55%, while BND has yielded a comparatively lower 1.55% annualized return.

VCLAX

• 1D: 0.09%
• 1M: 1.99%
• YTD: 1.96%
• 6M: 2.45%
• 1Y: 8.22%
• 3Y*: 4.86%
• 5Y*: 1.42%
• 10Y*: 2.55%

BND

• 1D: -0.27%
• 1M: 0.53%
• YTD: 0.38%
• 6M: 0.45%
• 1Y: 4.37%
• 3Y*: 3.92%
• 5Y*: 0.04%
• 10Y*: 1.55%

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

VCLAX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCLAX Vanguard California Long-Term Tax-Exempt Fund Admiral Shares	1.96%	4.97%	2.77%	7.60%	-9.99%	1.50%	5.68%	8.91%	0.76%	6.93%
BND Vanguard Total Bond Market ETF	0.38%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%

Correlation

The correlation between VCLAX 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	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007	0.47

The correlation between VCLAX and BND shifts across timeframes, from 0.47 (all time) to 0.58 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VCLAX vs. BND — Risk / Return Rank

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

VCLAX

VCLAX Risk / Return Rank: 71
VCLAX Sharpe Ratio Rank: 88
VCLAX Sortino Ratio Rank: 91
VCLAX Omega Ratio Rank: 92
VCLAX Calmar Ratio Rank: 44
VCLAX Martin Ratio Rank: 42

BND

BND Risk / Return Rank: 33
BND Sharpe Ratio Rank: 33
BND Sortino Ratio Rank: 34
BND Omega Ratio Rank: 31
BND Calmar Ratio Rank: 33
BND Martin Ratio Rank: 33

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.

VCLAX vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard California Long-Term Tax-Exempt Fund Admiral Shares (VCLAX) 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.

	VCLAX	BND	Difference
Sharpe ratio: Return per unit of total volatility	2.65	1.18	+1.48
Sortino ratio: Return per unit of downside risk	4.19	1.76	+2.44
Omega ratio: Gain probability vs. loss probability	1.66	1.21	+0.46
Calmar ratio: Return relative to maximum drawdown	2.41	1.64	+0.77
Martin ratio: Return relative to average drawdown	8.56	4.69	+3.87

VCLAX vs. BND - Sharpe Ratio Comparison

The current VCLAX Sharpe Ratio is 2.65, which is higher than the BND Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of VCLAX 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

VCLAX vs. BND - Drawdown Comparison

The maximum VCLAX drawdown since its inception was -15.72%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VCLAX and BND.

Drawdown Indicators

	VCLAX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-15.72%	-18.58%	+2.86%
Max Drawdown (1Y) Largest decline over 1 year	-3.43%	-2.68%	-0.75%
Max Drawdown (3Y) Largest decline over 3 years	-6.55%	-5.92%	-0.63%
Max Drawdown (5Y) Largest decline over 5 years	-15.72%	-17.91%	+2.19%
Max Drawdown (10Y) Largest decline over 10 years	-15.72%	-18.58%	+2.86%
Current Drawdown Current decline from peak	-0.29%	-2.26%	+1.97%
Average Drawdown Average peak-to-trough decline	-2.18%	-3.06%	+0.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.93%	+0.03%

Volatility

VCLAX vs. BND - Volatility Comparison

The current volatility for Vanguard California Long-Term Tax-Exempt Fund Admiral Shares (VCLAX) is 0.83%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.08%. This indicates that VCLAX 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

	VCLAX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.83%	1.08%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	2.39%	2.77%	-0.38%
Volatility (1Y) Calculated over the trailing 1-year period	3.12%	3.74%	-0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.57%	6.03%	-1.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.56%	5.54%	-0.98%

VCLAX vs. BND - Expense Ratio Comparison

VCLAX has a 0.09% 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

VCLAX vs. BND - Dividend Comparison

VCLAX's dividend yield for the trailing twelve months is around 3.59%, less than BND's 3.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.96%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VCLAX Vanguard California Long-Term Tax-Exempt Fund Admiral Shares	3.59%	4.41%	3.95%	3.07%	2.74%	2.60%	3.28%	3.24%	3.41%	3.32%	3.56%	3.58%

Frequently Asked Questions

Can I hold both VCLAX and BND in my portfolio?

VCLAX 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 is riskier, VCLAX or BND?

BND has higher volatility (1.08%) compared to VCLAX (0.83%). In terms of maximum drawdown, VCLAX dropped -15.72% vs BND's -18.58%.

Which has better risk-adjusted returns?

VCLAX currently has the higher Sharpe Ratio (2.65 vs 1.18), 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.