VTEAX vs. BND
Compare and contrast key facts about Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) and Vanguard Total Bond Market ETF (BND).
VTEAX is managed by Vanguard. It was launched on Aug 25, 2015. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTEAX or BND.
Key characteristics
| VTEAX | BND | |
|---|---|---|
| YTD Return | 1.35% | 2.40% |
| 1Y Return | 6.94% | 8.91% |
| 3Y Return (Ann) | -0.30% | -2.38% |
| 5Y Return (Ann) | 1.23% | 0.01% |
| Sharpe Ratio | 2.24 | 1.38 |
| Sortino Ratio | 3.33 | 2.03 |
| Omega Ratio | 1.53 | 1.24 |
| Calmar Ratio | 0.88 | 0.51 |
| Martin Ratio | 8.85 | 4.99 |
| Ulcer Index | 0.80% | 1.62% |
| Daily Std Dev | 3.15% | 5.85% |
| Max Drawdown | -12.74% | -18.84% |
| Current Drawdown | -1.61% | -8.44% |
Correlation
The correlation between VTEAX and BND is 0.48, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VTEAX vs. BND - Performance Comparison
In the year-to-date period, VTEAX achieves a 1.35% return, which is significantly lower than BND's 2.40% 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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VTEAX vs. BND - Expense Ratio Comparison
VTEAX has a 0.09% 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%.
Risk-Adjusted Performance
VTEAX vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) 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.
Dividends
VTEAX vs. BND - Dividend Comparison
VTEAX's dividend yield for the trailing twelve months is around 3.07%, less than BND's 3.55% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares | 3.07% | 2.75% | 2.06% | 1.61% | 1.97% | 2.28% | 2.24% | 0.34% | 0.00% | 0.00% | 0.00% | 0.00% |
BND Vanguard Total Bond Market ETF | 3.55% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
VTEAX vs. BND - Drawdown Comparison
The maximum VTEAX drawdown since its inception was -12.74%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VTEAX and BND. For additional features, visit the drawdowns tool.
Volatility
VTEAX vs. BND - Volatility Comparison
Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) and Vanguard Total Bond Market ETF (BND) have volatilities of 1.62% and 1.67%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.