VGK vs. BND
VGK (Vanguard FTSE Europe ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap 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, VGK returned 9.26%/yr vs 1.58%/yr for BND. At a correlation of -0.08, they often move in opposite directions. VGK charges 0.06%/yr vs 0.03%/yr for BND.
Performance
VGK vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VGK achieves a 5.62% return, which is significantly higher than BND's 0.27% return. Over the past 10 years, VGK has outperformed BND with an annualized return of 9.26%, while BND has yielded a comparatively lower 1.58% annualized return.
VGK
- 1D
- -1.19%
- 1M
- 2.79%
- YTD
- 5.62%
- 6M
- 8.66%
- 1Y
- 18.01%
- 3Y*
- 16.32%
- 5Y*
- 8.24%
- 10Y*
- 9.26%
BND
- 1D
- -0.19%
- 1M
- 0.27%
- YTD
- 0.27%
- 6M
- 0.12%
- 1Y
- 5.11%
- 3Y*
- 3.96%
- 5Y*
- 0.09%
- 10Y*
- 1.58%
VGK vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGK Vanguard FTSE Europe ETF | 5.62% | 35.83% | 1.88% | 20.19% | -15.98% | 16.89% | 5.43% | 24.85% | -14.89% | 26.98% |
BND Vanguard Total Bond Market ETF | 0.27% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between VGK and BND is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.10 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | -0.08 |
The correlation between VGK and BND shifts across timeframes, from -0.08 (all time) to 0.44 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGK vs. BND — Risk / Return Rank
VGK
BND
VGK vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) 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.
| VGK | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.18 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.24 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.50 | 1.92 | -0.42 |
| Martin ratioReturn relative to average drawdown | 5.56 | 5.80 | -0.24 |
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
| VGK | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.18 | 1.36 | -0.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.46 | 0.01 | +0.45 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.49 | 0.29 | +0.20 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.28 | 0.59 | -0.31 |
Drawdowns
VGK vs. BND - Drawdown Comparison
The maximum VGK drawdown since its inception was -63.61%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VGK and BND.
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Drawdown Indicators
| VGK | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.61% | -18.58% | -45.03% |
Max Drawdown (1Y)Largest decline over 1 year | -12.09% | -2.68% | -9.41% |
Max Drawdown (3Y)Largest decline over 3 years | -14.31% | -5.92% | -8.39% |
Max Drawdown (5Y)Largest decline over 5 years | -32.74% | -17.91% | -14.83% |
Max Drawdown (10Y)Largest decline over 10 years | -37.24% | -18.58% | -18.66% |
Current DrawdownCurrent decline from peak | -2.41% | -2.37% | -0.04% |
Average DrawdownAverage peak-to-trough decline | -13.34% | -3.06% | -10.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.25% | 0.88% | +2.37% |
Volatility
VGK vs. BND - Volatility Comparison
Vanguard FTSE Europe ETF (VGK) has a higher volatility of 5.73% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that VGK'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
| VGK | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.73% | 1.23% | +4.50% |
Volatility (6M)Calculated over the trailing 6-month period | 12.78% | 2.66% | +10.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.40% | 3.78% | +11.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.90% | 6.02% | +11.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.96% | 5.53% | +13.43% |
VGK vs. BND - Expense Ratio Comparison
VGK has a 0.06% 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
VGK vs. BND - Dividend Comparison
VGK's dividend yield for the trailing twelve months is around 2.82%, less than BND's 3.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.97% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VGK Vanguard FTSE Europe ETF | 2.82% | 2.86% | 3.61% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% |
Frequently Asked Questions
VGK and BND have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGK has higher volatility (5.73%) compared to BND (1.23%). In terms of maximum drawdown, VGK dropped -63.61% vs BND's -18.58%.
On 10-year performance, VGK leads with 9.26% vs 1.58% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGK has performed better with a 9.26% return vs 1.58%. 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 0.06% for VGK.
BND has the higher dividend yield at 3.97%, compared with 2.82% for VGK.
VGK is categorized as Europe Equities, while BND is Total Bond Market. VGK tracks FTSE Developed Europe All Cap Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.06% for VGK and 0.03% for BND.
BND currently has the higher Sharpe Ratio (1.36 vs 1.18), 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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