VGIT vs. BND
VGIT (Vanguard Intermediate-Term Treasury ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, VGIT returned 1.21%/yr vs 1.56%/yr for BND. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.
Performance
VGIT vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VGIT achieves a -0.73% return, which is significantly lower than BND's -0.05% return. Over the past 10 years, VGIT has underperformed BND with an annualized return of 1.21%, while BND has yielded a comparatively higher 1.56% annualized return.
VGIT
- 1D
- -0.41%
- 1M
- -0.67%
- YTD
- -0.73%
- 6M
- -0.51%
- 1Y
- 3.61%
- 3Y*
- 3.31%
- 5Y*
- -0.01%
- 10Y*
- 1.21%
BND
- 1D
- -0.45%
- 1M
- -0.39%
- YTD
- -0.05%
- 6M
- 0.11%
- 1Y
- 4.90%
- 3Y*
- 3.80%
- 5Y*
- 0.02%
- 10Y*
- 1.56%
VGIT vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | -0.73% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
BND Vanguard Total Bond Market ETF | -0.05% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between VGIT and BND is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.89 |
The correlation between VGIT and BND has been stable across timeframes, ranging from 0.89 to 0.96 - a consistent structural relationship.
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Return for Risk
VGIT vs. BND — Risk / Return Rank
VGIT
BND
VGIT vs. BND - Risk-Adjusted Trends 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.
| VGIT | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.26 | ||
| Sortino ratioReturn per unit of downside risk | -0.36 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.20 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.07 | 1.62 | -0.56 |
| Martin ratioReturn relative to average drawdown | 3.14 | 4.86 | -1.72 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VGIT | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.90 | 1.16 | -0.26 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.00 | 0.00 | -0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.27 | 0.28 | -0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 0.58 | -0.09 |
Drawdowns
VGIT vs. BND - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VGIT and BND.
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Drawdown Indicators
| VGIT | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.05% | -18.58% | +2.53% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -2.68% | -0.15% |
Max Drawdown (3Y)Largest decline over 3 years | -4.34% | -5.92% | +1.58% |
Max Drawdown (5Y)Largest decline over 5 years | -15.02% | -17.91% | +2.89% |
Max Drawdown (10Y)Largest decline over 10 years | -16.05% | -18.58% | +2.53% |
Current DrawdownCurrent decline from peak | -2.66% | -2.67% | +0.01% |
Average DrawdownAverage peak-to-trough decline | -3.52% | -3.06% | -0.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 0.89% | +0.07% |
Volatility
VGIT vs. BND - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Treasury ETF (VGIT) is 1.06%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.23%. 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.
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Volatility by Period
| VGIT | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.06% | 1.23% | -0.17% |
Volatility (6M)Calculated over the trailing 6-month period | 2.37% | 2.70% | -0.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.38% | 3.76% | -0.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 6.02% | -0.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.50% | 5.53% | -1.03% |
VGIT vs. BND - Expense Ratio Comparison
Both VGIT and BND have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VGIT vs. BND - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.88%, less than BND's 3.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.98% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.88% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
With a correlation of 0.95, VGIT and BND 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.
BND has higher volatility (1.23%) compared to VGIT (1.06%). In terms of maximum drawdown, VGIT dropped -16.05% vs BND's -18.58%.
On 10-year performance, BND leads with 1.56% vs 1.21% for VGIT. Both ETFs have the same 0.03% expense ratio. On volatility, VGIT has been the lower-risk option at 1.06%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BND has performed better with a 1.56% return vs 1.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT and BND have the same expense ratio: 0.03% per year.
BND has the higher dividend yield at 3.98%, compared with 3.88% for VGIT.
VGIT is categorized as Government Bonds, while BND is Total Bond Market. VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index.
BND currently has the higher Sharpe Ratio (1.16 vs 0.90), 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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