VCOBX vs. BND

Last updated Jun 3, 2026

VCOBX (Vanguard Core Bond Fund Admiral Shares) and BND (Vanguard Total Bond Market ETF) are both Total Bond Market funds from Vanguard. Over the past 10 years, VCOBX returned 2.19%/yr vs 1.60%/yr for BND. With a 0.96 correlation, they move nearly in lockstep. VCOBX charges 0.10%/yr vs 0.03%/yr for BND.

Performance

VCOBX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Core Bond Fund Admiral Shares (VCOBX) 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, VCOBX achieves a 0.60% return, which is significantly higher than BND's 0.46% return. Over the past 10 years, VCOBX has outperformed BND with an annualized return of 2.19%, while BND has yielded a comparatively lower 1.60% annualized return.

VCOBX

• 1D: -0.00%
• 1M: 0.22%
• YTD: 0.60%
• 6M: 0.64%
• 1Y: 5.73%
• 3Y*: 4.90%
• 5Y*: 0.62%
• 10Y*: 2.19%

BND

• 1D: 0.03%
• 1M: 0.12%
• YTD: 0.46%
• 6M: 0.46%
• 1Y: 5.19%
• 3Y*: 4.03%
• 5Y*: 0.20%
• 10Y*: 1.60%

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

VCOBX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCOBX Vanguard Core Bond Fund Admiral Shares	0.60%	7.73%	2.21%	6.39%	-13.13%	-1.51%	10.41%	9.64%	-0.85%	3.89%
BND Vanguard Total Bond Market ETF	0.46%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%

Correlation

The correlation between VCOBX and BND is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Mar 31, 2016	0.96

The correlation between VCOBX and BND has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

Return for Risk

VCOBX vs. BND — Risk / Return Rank

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

VCOBX

VCOBX Risk / Return Rank: 27
VCOBX Sharpe Ratio Rank: 26
VCOBX Sortino Ratio Rank: 27
VCOBX Omega Ratio Rank: 26
VCOBX Calmar Ratio Rank: 32
VCOBX Martin Ratio Rank: 26

BND

BND Risk / Return Rank: 38
BND Sharpe Ratio Rank: 38
BND Sortino Ratio Rank: 40
BND Omega Ratio Rank: 36
BND Calmar Ratio Rank: 37
BND Martin Ratio Rank: 36

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.

VCOBX vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Bond Fund Admiral Shares (VCOBX) 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.

	VCOBX	BND	Difference
Sharpe ratio Return per unit of total volatility	1.50	1.38	+0.12
Sortino ratio Return per unit of downside risk	2.23	2.07	+0.17
Omega ratio Gain probability vs. loss probability	1.27	1.24	+0.03
Calmar ratio Return relative to maximum drawdown	2.17	1.85	+0.32
Martin ratio Return relative to average drawdown	6.51	5.66	+0.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCOBX vs. BND - Sharpe Ratio Comparison

The current VCOBX Sharpe Ratio is 1.50, which is comparable to the BND Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of VCOBX 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.

Sharpe Ratios by Period

	VCOBX	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.50	1.38	+0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	0.03	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.29	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.59	-0.10

Drawdowns

VCOBX vs. BND - Drawdown Comparison

The maximum VCOBX drawdown since its inception was -18.14%, roughly equal to the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VCOBX and BND.

Drawdown Indicators

	VCOBX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-18.14%	-18.58%	+0.44%
Max Drawdown (1Y) Largest decline over 1 year	-2.62%	-2.68%	+0.06%
Max Drawdown (3Y) Largest decline over 3 years	-5.63%	-5.92%	+0.29%
Max Drawdown (5Y) Largest decline over 5 years	-18.03%	-17.91%	-0.12%
Max Drawdown (10Y) Largest decline over 10 years	-18.14%	-18.58%	+0.44%
Current Drawdown Current decline from peak	-1.25%	-2.18%	+0.93%
Average Drawdown Average peak-to-trough decline	-4.18%	-3.06%	-1.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	0.88%	-0.01%

Volatility

VCOBX vs. BND - Volatility Comparison

Vanguard Core Bond Fund Admiral Shares (VCOBX) has a higher volatility of 1.33% compared to Vanguard Total Bond Market ETF (BND) at 1.26%. This indicates that VCOBX'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.

Volatility by Period

	VCOBX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.33%	1.26%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	2.66%	2.68%	-0.02%
Volatility (1Y) Calculated over the trailing 1-year period	3.69%	3.78%	-0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.78%	6.02%	-0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.76%	5.53%	-0.77%

VCOBX vs. BND - Expense Ratio Comparison

VCOBX has a 0.10% 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

VCOBX vs. BND - Dividend Comparison

VCOBX's dividend yield for the trailing twelve months is around 4.73%, more 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%
VCOBX Vanguard Core Bond Fund Admiral Shares	4.73%	4.80%	5.04%	4.44%	3.01%	1.23%	3.09%	3.08%	3.10%	2.20%	2.29%	0.00%

Frequently Asked Questions

Can I hold both VCOBX and BND in my portfolio?

With a correlation of 0.98, VCOBX 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.

Which is riskier, VCOBX or BND?

VCOBX has higher volatility (1.33%) compared to BND (1.26%). In terms of maximum drawdown, VCOBX dropped -18.14% vs BND's -18.58%.

Which has better risk-adjusted returns?

VCOBX currently has the higher Sharpe Ratio (1.50 vs 1.38), 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.