VT vs. BNDW
Compare and contrast key facts about Vanguard Total World Stock ETF (VT) and Vanguard Total World Bond ETF (BNDW).
VT and BNDW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VT is a passively managed fund by Vanguard that tracks the performance of the FTSE Global All Cap Index. It was launched on Jun 24, 2008. BNDW is a passively managed fund by Vanguard that tracks the performance of the Bloomberg Barclays Global Aggregate Float Adjusted TR Index. It was launched on Sep 4, 2018. Both VT and BNDW 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: VT or BNDW.
Key characteristics
| VT | BNDW | |
|---|---|---|
| YTD Return | 4.51% | -2.27% |
| 1Y Return | 19.70% | 0.98% |
| 3Y Return (Ann) | 3.91% | -2.93% |
| 5Y Return (Ann) | 9.58% | -0.05% |
| Sharpe Ratio | 1.52 | 0.29 |
| Daily Std Dev | 11.70% | 5.72% |
| Max Drawdown | -50.27% | -17.21% |
| Current Drawdown | -3.08% | -10.66% |
Correlation
The correlation between VT and BNDW is 0.06, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VT vs. BNDW - Performance Comparison
In the year-to-date period, VT achieves a 4.51% return, which is significantly higher than BNDW's -2.27% 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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VT vs. BNDW - Expense Ratio Comparison
VT has a 0.07% expense ratio, which is higher than BNDW's 0.06% 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
VT vs. BNDW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Stock ETF (VT) and Vanguard Total World Bond ETF (BNDW). 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
VT vs. BNDW - Dividend Comparison
VT's dividend yield for the trailing twelve months is around 2.13%, less than BNDW's 3.99% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VT Vanguard Total World Stock ETF | 2.13% | 2.08% | 2.20% | 1.82% | 1.66% | 2.32% | 2.53% | 2.11% | 2.39% | 2.45% | 2.44% | 2.06% |
BNDW Vanguard Total World Bond ETF | 3.99% | 3.73% | 2.02% | 2.58% | 1.56% | 3.05% | 1.66% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
VT vs. BNDW - Drawdown Comparison
The maximum VT drawdown since its inception was -50.27%, which is greater than BNDW's maximum drawdown of -17.21%. Use the drawdown chart below to compare losses from any high point for VT and BNDW. For additional features, visit the drawdowns tool.
Volatility
VT vs. BNDW - Volatility Comparison
Vanguard Total World Stock ETF (VT) has a higher volatility of 3.34% compared to Vanguard Total World Bond ETF (BNDW) at 1.52%. This indicates that VT's price experiences larger fluctuations and is considered to be riskier than BNDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.