VGIT vs. BND
Compare and contrast key facts about Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard Total Bond Market ETF (BND).
VGIT and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 3-10 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both VGIT and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGIT or BND.
Key characteristics
| VGIT | BND | |
|---|---|---|
| YTD Return | 1.25% | 1.55% |
| 1Y Return | 4.75% | 6.48% |
| 3Y Return (Ann) | -1.78% | -2.22% |
| 5Y Return (Ann) | -0.21% | -0.27% |
| 10Y Return (Ann) | 1.12% | 1.39% |
| Sharpe Ratio | 1.07 | 1.25 |
| Sortino Ratio | 1.58 | 1.83 |
| Omega Ratio | 1.19 | 1.22 |
| Calmar Ratio | 0.41 | 0.48 |
| Martin Ratio | 3.23 | 4.20 |
| Ulcer Index | 1.65% | 1.70% |
| Daily Std Dev | 4.95% | 5.68% |
| Max Drawdown | -16.05% | -18.84% |
| Current Drawdown | -8.77% | -9.21% |
Correlation
The correlation between VGIT and BND is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VGIT vs. BND - Performance Comparison
In the year-to-date period, VGIT achieves a 1.25% return, which is significantly lower than BND's 1.55% return. Over the past 10 years, VGIT has underperformed BND with an annualized return of 1.12%, while BND has yielded a comparatively higher 1.39% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VGIT vs. BND - Expense Ratio Comparison
VGIT has a 0.04% 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%.
Risk-Adjusted Performance
VGIT vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) 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.
Dividends
VGIT vs. BND - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.58%, which matches BND's 3.58% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | 3.58% | 2.72% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% | 1.54% | 1.63% |
BND Vanguard Total Bond Market ETF | 3.58% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
VGIT vs. BND - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VGIT and BND. For additional features, visit the drawdowns tool.
Volatility
VGIT vs. BND - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Treasury ETF (VGIT) is 1.21%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.64%. This indicates that VGIT 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.