VTEC vs. BND
VTEC (Vanguard California Tax-Exempt Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VTEC is a Municipal Bonds fund tracking the S&P California AMT-Free Municipal Bond 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 year, VTEC returned 6.69% vs 5.11% for BND. A 0.68 correlation means they provide meaningful diversification when combined. VTEC charges 0.08%/yr vs 0.03%/yr for BND.
Performance
VTEC vs. BND - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VTEC achieves a 0.98% return, which is significantly higher than BND's 0.27% return.
VTEC
- 1D
- -0.05%
- 1M
- 0.62%
- YTD
- 0.98%
- 6M
- 1.25%
- 1Y
- 6.69%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
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%
VTEC vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VTEC Vanguard California Tax-Exempt Bond ETF | 0.98% | 3.98% | 1.42% |
BND Vanguard Total Bond Market ETF | 0.27% | 7.08% | 1.98% |
Correlation
The correlation between VTEC and BND is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024 | 0.68 |
The correlation between VTEC and BND has been stable across timeframes, ranging from 0.62 to 0.68 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VTEC vs. BND — Risk / Return Rank
VTEC
BND
VTEC vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard California Tax-Exempt Bond ETF (VTEC) 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.
| VTEC | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.03 | ||
| Sortino ratioReturn per unit of downside risk | +1.50 | ||
| Omega ratioGain probability vs. loss probability | 1.52 | 1.24 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 2.35 | 1.92 | +0.44 |
| Martin ratioReturn relative to average drawdown | 7.83 | 5.80 | +2.03 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VTEC | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.39 | 1.36 | +1.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.01 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.29 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.73 | 0.59 | +0.14 |
Drawdowns
VTEC vs. BND - Drawdown Comparison
The maximum VTEC drawdown since its inception was -4.50%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VTEC and BND.
Loading charts...
Drawdown Indicators
| VTEC | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.50% | -18.58% | +14.08% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -2.68% | -0.17% |
Max Drawdown (3Y)Largest decline over 3 years | — | -5.92% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -17.91% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | -0.82% | -2.37% | +1.55% |
Average DrawdownAverage peak-to-trough decline | -1.12% | -3.06% | +1.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.88% | -0.02% |
Volatility
VTEC vs. BND - Volatility Comparison
The current volatility for Vanguard California Tax-Exempt Bond ETF (VTEC) is 0.86%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.23%. This indicates that VTEC experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VTEC | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.86% | 1.23% | -0.37% |
Volatility (6M)Calculated over the trailing 6-month period | 1.87% | 2.66% | -0.79% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.82% | 3.78% | -0.96% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.76% | 6.02% | -2.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.76% | 5.53% | -1.77% |
VTEC vs. BND - Expense Ratio Comparison
VTEC has a 0.08% 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
VTEC vs. BND - Dividend Comparison
VTEC's dividend yield for the trailing twelve months is around 3.16%, 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% |
VTEC Vanguard California Tax-Exempt Bond ETF | 3.16% | 3.13% | 2.54% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VTEC and BND have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.23%) compared to VTEC (0.86%). In terms of maximum drawdown, VTEC dropped -4.50% vs BND's -18.58%.
On 1-year performance, VTEC leads with 6.69% vs 5.11% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, VTEC has been the lower-risk option at 0.86%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VTEC has performed better with a 6.69% return vs 5.11%. 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 0.08% for VTEC.
BND has the higher dividend yield at 3.97%, compared with 3.16% for VTEC.
VTEC is categorized as Municipal Bonds, while BND is Total Bond Market. VTEC tracks S&P California AMT-Free Municipal Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.08% for VTEC and 0.03% for BND.
VTEC currently has the higher Sharpe Ratio (2.39 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.
Find the right allocation for VTEC and BND
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer