VFSTX vs. BND
VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares) and BND (Vanguard Total Bond Market ETF) are both Total Bond Market funds from Vanguard. Over the past 10 years, VFSTX returned 2.42%/yr vs 1.36%/yr for BND. Their 0.71 correlation means they have sometimes moved together and sometimes differently. VFSTX charges 0.20%/yr vs 0.03%/yr for BND.
Performance
VFSTX vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VFSTX achieves a 0.49% return, which is significantly higher than BND's -0.54% return. Over the past 10 years, VFSTX has outperformed BND with an annualized return of 2.42%, while BND has yielded a comparatively lower 1.36% annualized return.
VFSTX
- 1D
- 0.00%
- 1M
- -0.48%
- 6M
- 0.11%
- YTD
- 0.49%
- 1Y
- 2.70%
- 3Y*
- 5.27%
- 5Y*
- 2.18%
- 10Y*
- 2.42%
- ALL TIME*
- 3.78%
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 | |
| $0.00 | $0.00 | $0.00 |
VFSTX vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 0.49% | 6.75% | 4.98% | 6.06% | -5.84% | -0.70% | 5.16% | 5.75% | 0.87% | 2.02% |
BND Vanguard Total Bond Market ETF | -0.54% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between VFSTX and BND is 0.78, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.78 |
Correlation (3Y) Balances recent behavior with more history. | 0.80 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.82 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.76 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.71 |
The correlation between VFSTX and BND shifts across timeframes, from 0.71 (all time) to 0.82 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VFSTX vs. BND — Risk / Return Rank
VFSTX
BND
VFSTX vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) 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.
| VFSTX | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.88 | ||
| Sortino ratioReturn per unit of downside risk | +1.62 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.12 | +0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.11 | 0.99 | +1.13 |
| Martin ratioReturn relative to average drawdown | 7.83 | 2.48 | +5.35 |
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Drawdowns
VFSTX vs. BND - Drawdown Comparison
The maximum VFSTX drawdown since its inception was -9.35%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VFSTX and BND.
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Drawdown Indicators
| VFSTX | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.35% | -18.58% | +9.23% |
Max Drawdown (1Y)Largest decline over 1 year | -1.71% | -2.68% | +0.97% |
Max Drawdown (3Y)Largest decline over 3 years | -1.71% | -4.81% | +3.10% |
Max Drawdown (5Y)Largest decline over 5 years | -9.35% | -17.91% | +8.56% |
Max Drawdown (10Y)Largest decline over 10 years | -9.35% | -18.58% | +9.23% |
Current DrawdownCurrent decline from peak | -0.58% | -3.15% | +2.57% |
Average DrawdownAverage peak-to-trough decline | -1.11% | -3.06% | +1.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.46% | 1.07% | -0.61% |
Volatility
VFSTX vs. BND - Volatility Comparison
The current volatility for Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) is 0.48%, while Vanguard Total Bond Market ETF (BND) has a volatility of 0.98%. This indicates that VFSTX 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.
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Volatility by Period
| VFSTX | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.48% | 0.98% | -0.50% |
Volatility (6M)Calculated over the trailing 6-month period | 1.75% | 2.90% | -1.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.26% | 3.70% | -1.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.99% | 6.03% | -3.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.48% | 5.53% | -3.05% |
VFSTX vs. BND - Expense Ratio Comparison
VFSTX has a 0.20% 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
VFSTX vs. BND - Dividend Comparison
VFSTX's dividend yield for the trailing twelve months is around 4.25%, 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% |
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 4.25% | 4.48% | 4.06% | 3.05% | 1.93% | 1.70% | 2.24% | 2.83% | 2.68% | 2.00% | 2.04% | 1.99% |
Frequently Asked Questions
VFSTX and BND have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (0.98%) compared to VFSTX (0.48%). In terms of maximum drawdown, VFSTX dropped -9.35% vs BND's -18.58%.
VFSTX currently has the higher Sharpe Ratio (1.60 vs 0.72), 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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