VGLT vs. BND
VGLT (Vanguard Long-Term Treasury ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VGLT is a Government Bonds fund tracking the Bloomberg U.S. Long Treasury 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, VGLT returned -1.18%/yr vs 1.59%/yr for BND. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.
Performance
VGLT vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VGLT achieves a 0.54% return, which is significantly lower than BND's 0.75% return. Over the past 10 years, VGLT has underperformed BND with an annualized return of -1.18%, while BND has yielded a comparatively higher 1.59% annualized return.
VGLT
- 1D
- 0.49%
- 1M
- 3.15%
- YTD
- 0.54%
- 6M
- 0.39%
- 1Y
- 5.67%
- 3Y*
- -0.53%
- 5Y*
- -5.50%
- 10Y*
- -1.18%
BND
- 1D
- 0.15%
- 1M
- 1.26%
- YTD
- 0.75%
- 6M
- 0.83%
- 1Y
- 5.22%
- 3Y*
- 4.09%
- 5Y*
- 0.12%
- 10Y*
- 1.59%
VGLT vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 0.54% | 5.35% | -6.28% | 3.27% | -29.34% | -4.98% | 17.57% | 14.30% | -1.54% | 8.64% |
BND Vanguard Total Bond Market ETF | 0.75% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between VGLT and BND is 0.94, 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 | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.89 |
The correlation between VGLT and BND has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.
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Return for Risk
VGLT vs. BND — Risk / Return Rank
VGLT
BND
VGLT vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) 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.
| VGLT | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.75 | ||
| Sortino ratioReturn per unit of downside risk | -1.11 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.25 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 0.81 | 1.96 | -1.15 |
| Martin ratioReturn relative to average drawdown | 2.04 | 5.67 | -3.63 |
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Drawdowns
VGLT vs. BND - Drawdown Comparison
The maximum VGLT drawdown since its inception was -46.18%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VGLT and BND.
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Drawdown Indicators
| VGLT | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.18% | -18.58% | -27.60% |
Max Drawdown (1Y)Largest decline over 1 year | -7.01% | -2.68% | -4.33% |
Max Drawdown (3Y)Largest decline over 3 years | -17.68% | -5.92% | -11.76% |
Max Drawdown (5Y)Largest decline over 5 years | -40.98% | -17.91% | -23.07% |
Max Drawdown (10Y)Largest decline over 10 years | -46.18% | -18.58% | -27.60% |
Current DrawdownCurrent decline from peak | -36.23% | -1.90% | -34.33% |
Average DrawdownAverage peak-to-trough decline | -15.10% | -3.06% | -12.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.79% | 0.92% | +1.87% |
Volatility
VGLT vs. BND - Volatility Comparison
Vanguard Long-Term Treasury ETF (VGLT) has a higher volatility of 2.23% compared to Vanguard Total Bond Market ETF (BND) at 1.12%. This indicates that VGLT'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
| VGLT | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.23% | 1.12% | +1.11% |
Volatility (6M)Calculated over the trailing 6-month period | 6.04% | 2.73% | +3.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.68% | 3.71% | +4.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.57% | 6.03% | +8.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 13.82% | 5.53% | +8.29% |
VGLT vs. BND - Expense Ratio Comparison
Both VGLT 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
VGLT vs. BND - Dividend Comparison
VGLT's dividend yield for the trailing twelve months is around 4.57%, more than BND's 3.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.95% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VGLT Vanguard Long-Term Treasury ETF | 4.57% | 4.44% | 4.33% | 3.33% | 2.84% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% |
Frequently Asked Questions
With a correlation of 0.94, VGLT 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.
VGLT has higher volatility (2.23%) compared to BND (1.12%). In terms of maximum drawdown, VGLT dropped -46.18% vs BND's -18.58%.
On 10-year performance, BND leads with 1.59% vs -1.18% for VGLT. Both ETFs have the same 0.03% expense ratio. On volatility, BND has been the lower-risk option at 1.12%. 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 1.59% return vs -1.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGLT and BND have the same expense ratio: 0.03% per year.
VGLT has the higher dividend yield at 4.57%, compared with 3.95% for BND.
VGLT is categorized as Government Bonds, while BND is Total Bond Market. VGLT tracks Bloomberg U.S. Long Treasury Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index.
BND currently has the higher Sharpe Ratio (1.41 vs 0.66), 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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