VO vs. BND
VO (Vanguard Mid-Cap ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid 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, VO returned 11.55%/yr vs 1.58%/yr for BND. At a correlation of -0.12, they often move in opposite directions. Both charge a 0.03% expense ratio.
Performance
VO vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VO achieves a 10.05% return, which is significantly higher than BND's 0.27% return. Over the past 10 years, VO has outperformed BND with an annualized return of 11.55%, while BND has yielded a comparatively lower 1.58% annualized return.
VO
- 1D
- -0.45%
- 1M
- 3.20%
- YTD
- 10.05%
- 6M
- 9.73%
- 1Y
- 18.13%
- 3Y*
- 16.69%
- 5Y*
- 7.87%
- 10Y*
- 11.55%
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%
VO vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 10.05% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.10% | 30.98% | -9.24% | 19.28% |
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 VO and BND is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.29 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | -0.12 |
The correlation between VO and BND shifts across timeframes, from -0.12 (all time) to 0.32 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VO vs. BND — Risk / Return Rank
VO
BND
VO vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.
| VO | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.12 | ||
| Sortino ratioReturn per unit of downside risk | +0.11 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.24 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.23 | 1.92 | +0.31 |
| Martin ratioReturn relative to average drawdown | 8.50 | 5.80 | +2.70 |
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
| VO | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.48 | 1.36 | +0.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.45 | 0.01 | +0.44 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.61 | 0.29 | +0.33 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.59 | -0.08 |
Drawdowns
VO vs. BND - Drawdown Comparison
The maximum VO drawdown since its inception was -58.87%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VO and BND.
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Drawdown Indicators
| VO | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.87% | -18.58% | -40.29% |
Max Drawdown (1Y)Largest decline over 1 year | -8.17% | -2.68% | -5.49% |
Max Drawdown (3Y)Largest decline over 3 years | -19.02% | -5.92% | -13.10% |
Max Drawdown (5Y)Largest decline over 5 years | -27.57% | -17.91% | -9.66% |
Max Drawdown (10Y)Largest decline over 10 years | -39.37% | -18.58% | -20.79% |
Current DrawdownCurrent decline from peak | -0.45% | -2.37% | +1.92% |
Average DrawdownAverage peak-to-trough decline | -7.86% | -3.06% | -4.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.14% | 0.88% | +1.26% |
Volatility
VO vs. BND - Volatility Comparison
Vanguard Mid-Cap ETF (VO) has a higher volatility of 2.99% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that VO'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
| VO | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.99% | 1.23% | +1.76% |
Volatility (6M)Calculated over the trailing 6-month period | 9.21% | 2.66% | +6.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.34% | 3.78% | +8.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.59% | 6.02% | +11.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.95% | 5.53% | +13.42% |
VO vs. BND - Expense Ratio Comparison
Both VO 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
VO vs. BND - Dividend Comparison
VO's dividend yield for the trailing twelve months is around 1.36%, 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% |
VO Vanguard Mid-Cap ETF | 1.36% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
Frequently Asked Questions
VO and BND have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VO has higher volatility (2.99%) compared to BND (1.23%). In terms of maximum drawdown, VO dropped -58.87% vs BND's -18.58%.
On 10-year performance, VO leads with 11.55% vs 1.58% for BND. Both ETFs have the same 0.03% expense ratio. 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, VO has performed better with a 11.55% return vs 1.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VO and BND have the same expense ratio: 0.03% per year.
BND has the higher dividend yield at 3.97%, compared with 1.36% for VO.
VO is categorized as Mid Cap Blend Equities, while BND is Total Bond Market. VO tracks CRSP US Mid Cap Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index.
VO currently has the higher Sharpe Ratio (1.48 vs 1.36), 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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