VGCIX vs. BNDW

Last updated Jun 3, 2026

VGCIX (Vanguard Global Credit Bond Fund Investor Shares) and BNDW (Vanguard Total World Bond ETF) are both funds - VGCIX is a Total Bond Market fund managed by Vanguard, while BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index. Over the past 5 years, VGCIX returned 1.38%/yr vs 0.33%/yr for BNDW. Their correlation of 0.91 suggests significant overlap in exposure. VGCIX charges 0.35%/yr vs 0.05%/yr for BNDW.

Performance

VGCIX vs. BNDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Global Credit Bond Fund Investor Shares (VGCIX) and Vanguard Total World Bond ETF (BNDW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGCIX achieves a 0.97% return, which is significantly higher than BNDW's 0.68% return.

VGCIX

• 1D: -0.10%
• 1M: 0.63%
• YTD: 0.97%
• 6M: 1.04%
• 1Y: 5.84%
• 3Y*: 6.13%
• 5Y*: 1.38%
• 10Y*: —

BNDW

• 1D: 0.10%
• 1M: 0.44%
• YTD: 0.68%
• 6M: 0.54%
• 1Y: 3.74%
• 3Y*: 4.08%
• 5Y*: 0.33%
• 10Y*: —

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

VGCIX vs. BNDW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VGCIX Vanguard Global Credit Bond Fund Investor Shares	0.97%	7.26%	3.82%	9.17%	-13.61%	-0.70%	10.70%	12.93%	0.95%
BNDW Vanguard Total World Bond ETF	0.68%	5.02%	2.42%	7.18%	-12.88%	-2.10%	6.22%	8.37%	1.90%

Correlation

The correlation between VGCIX and BNDW is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Nov 16, 2018	0.91

The correlation between VGCIX and BNDW has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

VGCIX vs. BNDW - Sectors Allocation Comparison

Sectors	VGCIX	BNDW
Energy	0.0%	-
Real Estate	0.0%	-
Financial Services	0.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Industrials	-	-
Technology	-	100.0%
Utilities	-	-

Return for Risk

VGCIX vs. BNDW — Risk / Return Rank

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

VGCIX

VGCIX Risk / Return Rank: 31
VGCIX Sharpe Ratio Rank: 33
VGCIX Sortino Ratio Rank: 35
VGCIX Omega Ratio Rank: 32
VGCIX Calmar Ratio Rank: 27
VGCIX Martin Ratio Rank: 27

BNDW

BNDW Risk / Return Rank: 29
BNDW Sharpe Ratio Rank: 31
BNDW Sortino Ratio Rank: 30
BNDW Omega Ratio Rank: 29
BNDW Calmar Ratio Rank: 27
BNDW Martin Ratio Rank: 27

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.

VGCIX vs. BNDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Global Credit Bond Fund Investor Shares (VGCIX) and Vanguard Total World Bond ETF (BNDW). 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.

	VGCIX	BNDW	Difference
Sharpe ratio Return per unit of total volatility	1.68	1.12	+0.56
Sortino ratio Return per unit of downside risk	2.47	1.60	+0.87
Omega ratio Gain probability vs. loss probability	1.30	1.19	+0.11
Calmar ratio Return relative to maximum drawdown	1.98	1.34	+0.64
Martin ratio Return relative to average drawdown	6.71	3.82	+2.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGCIX vs. BNDW - Sharpe Ratio Comparison

The current VGCIX Sharpe Ratio is 1.68, which is higher than the BNDW Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of VGCIX and BNDW, 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

	VGCIX	BNDW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.68	1.12	+0.56
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.06	+0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.79	0.38	+0.41

Drawdowns

VGCIX vs. BNDW - Drawdown Comparison

The maximum VGCIX drawdown since its inception was -18.69%, which is greater than BNDW's maximum drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for VGCIX and BNDW.

Drawdown Indicators

	VGCIX	BNDW	Difference
Max Drawdown Largest peak-to-trough decline	-18.69%	-17.22%	-1.47%
Max Drawdown (1Y) Largest decline over 1 year	-2.95%	-2.70%	-0.25%
Max Drawdown (3Y) Largest decline over 3 years	-4.13%	-4.27%	+0.14%
Max Drawdown (5Y) Largest decline over 5 years	-18.69%	-16.93%	-1.76%
Current Drawdown Current decline from peak	-0.77%	-1.27%	+0.50%
Average Drawdown Average peak-to-trough decline	-4.45%	-4.98%	+0.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	0.95%	-0.08%

Volatility

VGCIX vs. BNDW - Volatility Comparison

Vanguard Global Credit Bond Fund Investor Shares (VGCIX) and Vanguard Total World Bond ETF (BNDW) have volatilities of 1.35% and 1.31%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGCIX	BNDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.35%	1.31%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	2.64%	2.63%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	3.43%	3.35%	+0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.14%	5.21%	-0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.91%	4.90%	+0.01%

VGCIX vs. BNDW - Expense Ratio Comparison

VGCIX has a 0.35% expense ratio, which is higher than BNDW's 0.05% expense ratio.

Dividends

VGCIX vs. BNDW - Dividend Comparison

VGCIX's dividend yield for the trailing twelve months is around 4.85%, more than BNDW's 4.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
BNDW Vanguard Total World Bond ETF	4.20%	4.12%	3.90%	3.73%	2.02%	2.58%	1.56%	3.05%	1.66%
VGCIX Vanguard Global Credit Bond Fund Investor Shares	4.85%	4.82%	4.54%	4.38%	2.61%	3.05%	4.55%	6.77%	0.35%

Frequently Asked Questions

Can I hold both VGCIX and BNDW in my portfolio?

With a correlation of 0.92, VGCIX and BNDW 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, VGCIX or BNDW?

VGCIX has higher volatility (1.35%) compared to BNDW (1.31%). In terms of maximum drawdown, VGCIX dropped -18.69% vs BNDW's -17.22%.

Which has better risk-adjusted returns?

VGCIX currently has the higher Sharpe Ratio (1.68 vs 1.12), 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.