VFMF vs. BND
VFMF (Vanguard U.S. Multifactor ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VFMF is a Multi-factor fund actively managed by Vanguard, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. VFMF is actively managed, while BND is passively managed. Over the past 5 years, VFMF returned 14.79%/yr vs -0.22%/yr for BND. At a 0.01 correlation, their price movements are largely independent. VFMF charges 0.18%/yr vs 0.03%/yr for BND.
Performance
VFMF vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VFMF achieves a 20.33% return, which is significantly higher than BND's -0.17% return.
VFMF
- 1D
- 0.17%
- 1M
- 2.16%
- 6M
- 16.06%
- YTD
- 20.33%
- 1Y
- 35.05%
- 3Y*
- 21.59%
- 5Y*
- 14.79%
- 10Y*
- —
BND
- 1D
- -0.37%
- 1M
- -0.68%
- 6M
- -0.37%
- YTD
- -0.17%
- 1Y
- 3.58%
- 3Y*
- 3.76%
- 5Y*
- -0.22%
- 10Y*
- 1.43%
VFMF vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VFMF Vanguard U.S. Multifactor ETF | 20.33% | 17.38% | 15.60% | 18.52% | -5.70% | 30.05% | 4.99% | 22.34% | -10.89% |
BND Vanguard Total Bond Market ETF | -0.17% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | 2.39% |
Correlation
The correlation between VFMF and BND is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.30 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018 | 0.01 |
Over the past year, VFMF and BND have become more correlated (0.30) than their long-term average of 0.01, meaning their price movements have been converging.
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Return for Risk
VFMF vs. BND — Risk / Return Rank
VFMF
BND
VFMF vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Multifactor ETF (VFMF) 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.
| VFMF | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.73 | ||
| Sortino ratioReturn per unit of downside risk | +2.41 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.17 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 4.98 | 1.34 | +3.63 |
| Martin ratioReturn relative to average drawdown | 18.90 | 3.72 | +15.18 |
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Drawdowns
VFMF vs. BND - Drawdown Comparison
The maximum VFMF drawdown since its inception was -41.34%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VFMF and BND.
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Drawdown Indicators
| VFMF | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -41.34% | -18.58% | -22.76% |
Max Drawdown (1Y)Largest decline over 1 year | -7.08% | -2.68% | -4.40% |
Max Drawdown (3Y)Largest decline over 3 years | -20.57% | -5.92% | -14.65% |
Max Drawdown (5Y)Largest decline over 5 years | -20.57% | -17.91% | -2.66% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | 0.00% | -2.79% | +2.79% |
Average DrawdownAverage peak-to-trough decline | -5.67% | -3.06% | -2.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.86% | 0.97% | +0.89% |
Volatility
VFMF vs. BND - Volatility Comparison
Vanguard U.S. Multifactor ETF (VFMF) has a higher volatility of 2.71% compared to Vanguard Total Bond Market ETF (BND) at 1.24%. This indicates that VFMF'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.
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Volatility by Period
| VFMF | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.71% | 1.24% | +1.47% |
Volatility (6M)Calculated over the trailing 6-month period | 9.14% | 2.86% | +6.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.06% | 3.72% | +9.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.91% | 6.03% | +11.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.05% | 5.53% | +15.52% |
VFMF vs. BND - Expense Ratio Comparison
VFMF has a 0.18% 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
VFMF vs. BND - Dividend Comparison
VFMF's dividend yield for the trailing twelve months is around 1.36%, less than BND's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 4.01% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VFMF Vanguard U.S. Multifactor ETF | 1.36% | 1.54% | 1.60% | 1.78% | 2.21% | 1.39% | 1.56% | 1.61% | 1.22% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VFMF and BND have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VFMF has higher volatility (2.71%) compared to BND (1.24%). In terms of maximum drawdown, VFMF dropped -41.34% vs BND's -18.58%.
On 5-year performance, VFMF leads with 14.79% vs -0.22% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.24%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VFMF has performed better with a 14.79% return vs -0.22%. 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 0.18% for VFMF.
BND has the higher dividend yield at 4.01%, compared with 1.36% for VFMF.
VFMF is categorized as Multi-factor, while BND is Total Bond Market. Their fees differ too: 0.18% for VFMF and 0.03% for BND.
VFMF currently has the higher Sharpe Ratio (2.70 vs 0.97), 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.
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