VEGBX vs. BND

Last updated Jun 19, 2026

VEGBX (Vanguard Emerging Markets Bond Fund Admiral Shares) and BND (Vanguard Total Bond Market ETF) are both funds - VEGBX is a Emerging Markets 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 5 years, VEGBX returned 4.41%/yr vs 0.04%/yr for BND. A 0.52 correlation means they provide meaningful diversification when combined. VEGBX charges 0.40%/yr vs 0.03%/yr for BND.

Performance

VEGBX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Emerging Markets Bond Fund Admiral Shares (VEGBX) 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, VEGBX achieves a 3.36% return, which is significantly higher than BND's 0.65% return.

VEGBX

• 1D: -0.28%
• 1M: 2.47%
• YTD: 3.36%
• 6M: 3.61%
• 1Y: 13.11%
• 3Y*: 11.49%
• 5Y*: 4.41%
• 10Y*: —

BND

• 1D: 0.27%
• 1M: 1.57%
• YTD: 0.65%
• 6M: 0.54%
• 1Y: 4.73%
• 3Y*: 4.05%
• 5Y*: 0.04%
• 10Y*: 1.60%

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

VEGBX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEGBX Vanguard Emerging Markets Bond Fund Admiral Shares	3.36%	14.46%	7.60%	13.81%	-13.02%	-1.44%	15.18%	17.87%	-0.66%	11.65%
BND Vanguard Total Bond Market ETF	0.65%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.38%

Correlation

The correlation between VEGBX and BND is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (All Time) Calculated using the full available price history since Feb 1, 2017	0.52

The correlation between VEGBX and BND shifts across timeframes, from 0.52 (all time) to 0.73 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VEGBX vs. BND — Risk / Return Rank

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

VEGBX

VEGBX Risk / Return Rank: 90
VEGBX Sharpe Ratio Rank: 95
VEGBX Sortino Ratio Rank: 95
VEGBX Omega Ratio Rank: 90
VEGBX Calmar Ratio Rank: 81
VEGBX Martin Ratio Rank: 87

BND

BND Risk / Return Rank: 37
BND Sharpe Ratio Rank: 38
BND Sortino Ratio Rank: 39
BND Omega Ratio Rank: 35
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.

VEGBX vs. BND - Risk-Adjusted Trends Comparison

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

	VEGBX	BND	Difference
Sharpe ratio: Return per unit of total volatility	3.01	1.27	+1.73
Sortino ratio: Return per unit of downside risk	4.86	1.91	+2.95
Omega ratio: Gain probability vs. loss probability	1.62	1.22	+0.39
Calmar ratio: Return relative to maximum drawdown	3.47	1.77	+1.70
Martin ratio: Return relative to average drawdown	15.17	5.10	+10.07

VEGBX vs. BND - Sharpe Ratio Comparison

The current VEGBX Sharpe Ratio is 3.01, which is higher than the BND Sharpe Ratio of 1.27. The chart below compares the historical Sharpe Ratios of VEGBX 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

VEGBX vs. BND - Drawdown Comparison

The maximum VEGBX drawdown since its inception was -24.27%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VEGBX and BND.

Drawdown Indicators

	VEGBX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-24.27%	-18.58%	-5.69%
Max Drawdown (1Y) Largest decline over 1 year	-3.79%	-2.68%	-1.11%
Max Drawdown (3Y) Largest decline over 3 years	-5.53%	-5.92%	+0.39%
Max Drawdown (5Y) Largest decline over 5 years	-24.27%	-17.91%	-6.36%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.58%	—
Current Drawdown Current decline from peak	-0.28%	-1.99%	+1.71%
Average Drawdown Average peak-to-trough decline	-3.83%	-3.06%	-0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	0.93%	-0.06%

Volatility

VEGBX vs. BND - Volatility Comparison

Vanguard Emerging Markets Bond Fund Admiral Shares (VEGBX) has a higher volatility of 1.28% compared to Vanguard Total Bond Market ETF (BND) at 1.14%. This indicates that VEGBX'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

	VEGBX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.28%	1.14%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	3.66%	2.76%	+0.90%
Volatility (1Y) Calculated over the trailing 1-year period	4.38%	3.72%	+0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.35%	6.03%	+0.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.36%	5.53%	+0.83%

VEGBX vs. BND - Expense Ratio Comparison

VEGBX has a 0.40% expense ratio, which is higher than BND's 0.03% expense ratio.

Dividends

VEGBX vs. BND - Dividend Comparison

VEGBX's dividend yield for the trailing twelve months is around 6.12%, more than BND's 3.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.95%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VEGBX Vanguard Emerging Markets Bond Fund Admiral Shares	6.12%	6.34%	7.02%	7.20%	5.61%	5.14%	4.62%	6.42%	5.00%	0.39%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VEGBX and BND in my portfolio?

VEGBX and BND have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEGBX or BND?

VEGBX has higher volatility (1.28%) compared to BND (1.14%). In terms of maximum drawdown, VEGBX dropped -24.27% vs BND's -18.58%.

Which has better risk-adjusted returns?

VEGBX currently has the higher Sharpe Ratio (3.01 vs 1.27), 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.