VTG vs. BND

Last updated Jul 12, 2026

VTG (Vanguard Total Treasury ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VTG is a Government Bonds fund tracking the Bloomberg U.S. Treasury Total Return Unhedged USD 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, VTG returned 3.10% vs 3.97% for BND. With a 0.97 correlation, they move nearly in lockstep. Both charge a 0.03% expense ratio.

Performance

VTG vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Treasury ETF (VTG) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTG achieves a -0.15% return, which is significantly lower than BND's 0.20% return.

VTG

• 1D: -0.07%
• 1M: -0.25%
• 6M: -0.29%
• YTD: -0.15%
• 1Y: 3.10%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BND

• 1D: -0.08%
• 1M: -0.31%
• 6M: -0.09%
• YTD: 0.20%
• 1Y: 3.97%
• 3Y*: 4.21%
• 5Y*: -0.15%
• 10Y*: 1.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VTG vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025
VTG Vanguard Total Treasury ETF	-0.15%	3.07%
BND Vanguard Total Bond Market ETF	0.20%	3.76%

Correlation

The correlation between VTG and BND is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.97

The correlation between VTG and BND has been stable across timeframes, ranging from 0.97 to 0.97 - a consistent structural relationship.

Return for Risk

VTG vs. BND — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTG

VTG Risk / Return Rank: 24
VTG Sharpe Ratio Rank: 25
VTG Sortino Ratio Rank: 25
VTG Omega Ratio Rank: 23
VTG Calmar Ratio Rank: 24
VTG Martin Ratio Rank: 24

BND

BND Risk / Return Rank: 31
BND Sharpe Ratio Rank: 32
BND Sortino Ratio Rank: 31
BND Omega Ratio Rank: 29
BND Calmar Ratio Rank: 33
BND Martin Ratio Rank: 32

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VTG vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Treasury ETF (VTG) 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.

	VTG	BND	Difference
Sharpe ratio: Return per unit of total volatility	0.77	0.96	-0.19
Sortino ratio: Return per unit of downside risk	1.15	1.42	-0.26
Omega ratio: Gain probability vs. loss probability	1.13	1.17	-0.03
Calmar ratio: Return relative to maximum drawdown	0.94	1.33	-0.39
Martin ratio: Return relative to average drawdown	2.48	3.71	-1.23

VTG vs. BND - Sharpe Ratio Comparison

The current VTG Sharpe Ratio is 0.77, which is comparable to the BND Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of VTG and BND, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTG vs. BND - Drawdown Comparison

The maximum VTG drawdown since its inception was -2.89%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VTG and BND.

Drawdown Indicators

	VTG	BND	Difference
Max Drawdown Largest peak-to-trough decline	-2.89%	-18.58%	+15.69%
Max Drawdown (1Y) Largest decline over 1 year	-2.89%	-2.68%	-0.21%
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 Drawdown Current decline from peak	-1.94%	-2.43%	+0.49%
Average Drawdown Average peak-to-trough decline	-0.82%	-3.06%	+2.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.09%	0.96%	+0.13%

Volatility

VTG vs. BND - Volatility Comparison

The current volatility for Vanguard Total Treasury ETF (VTG) is 1.10%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.18%. This indicates that VTG 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.

Volatility by Period

	VTG	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.10%	1.18%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	2.64%	2.84%	-0.20%
Volatility (1Y) Calculated over the trailing 1-year period	3.53%	3.72%	-0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.53%	6.03%	-2.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.53%	5.53%	-2.00%

VTG vs. BND - Expense Ratio Comparison

Both VTG 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

VTG vs. BND - Dividend Comparison

VTG's dividend yield for the trailing twelve months is around 3.54%, less than BND's 4.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	4.00%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VTG Vanguard Total Treasury ETF	3.54%	1.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTG and BND in my portfolio?

With a correlation of 0.97, VTG 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.

Which is riskier, VTG or BND?

BND has higher volatility (1.18%) compared to VTG (1.10%). In terms of maximum drawdown, VTG dropped -2.89% vs BND's -18.58%.

Which ETF is better, VTG or BND?

On 1-year performance, BND leads with 3.97% vs 3.10% for VTG. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTG or BND?

Over the 1-year period, BND has performed better with a 3.97% return vs 3.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTG or BND?

VTG and BND have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, VTG or BND?

BND has the higher dividend yield at 4.00%, compared with 3.54% for VTG.

What is the main difference between VTG and BND?

VTG is categorized as Government Bonds, while BND is Total Bond Market. VTG tracks Bloomberg U.S. Treasury Total Return Unhedged USD Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index.

Which has better risk-adjusted returns?

BND currently has the higher Sharpe Ratio (0.96 vs 0.77), 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.