VTG vs. BNDD

Last updated Jul 12, 2026

VTG (Vanguard Total Treasury ETF) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. VTG is passively managed, while BNDD is actively managed. Over the past year, VTG returned 3.10% vs 4.44% for BNDD. At a 0.41 correlation, their price movements are largely independent. VTG charges 0.03%/yr vs 1.02%/yr for BNDD.

Performance

VTG vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Treasury ETF (VTG) and Quadratic Deflation ETF (BNDD). 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 BNDD's 4.85% return.

VTG

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

BNDD

• 1D: 0.20%
• 1M: -1.27%
• 6M: 3.88%
• YTD: 4.85%
• 1Y: 4.44%
• 3Y*: -4.64%
• 5Y*: —
• 10Y*: —

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

VTG vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025
VTG Vanguard Total Treasury ETF	-0.15%	3.07%
BNDD Quadratic Deflation ETF	4.85%	-0.92%

Correlation

The correlation between VTG and BNDD is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.41

Return for Risk

VTG vs. BNDD — 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

BNDD

BNDD Risk / Return Rank: 15
BNDD Sharpe Ratio Rank: 15
BNDD Sortino Ratio Rank: 13
BNDD Omega Ratio Rank: 13
BNDD Calmar Ratio Rank: 16
BNDD Martin Ratio Rank: 16

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. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Treasury ETF (VTG) and Quadratic Deflation ETF (BNDD). 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	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	0.77	0.29	+0.48
Sortino ratio: Return per unit of downside risk	1.15	0.48	+0.67
Omega ratio: Gain probability vs. loss probability	1.13	1.06	+0.08
Calmar ratio: Return relative to maximum drawdown	0.94	0.49	+0.45
Martin ratio: Return relative to average drawdown	2.48	1.12	+1.36

VTG vs. BNDD - Sharpe Ratio Comparison

The current VTG Sharpe Ratio is 0.77, which is higher than the BNDD Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of VTG and BNDD, 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. BNDD - Drawdown Comparison

The maximum VTG drawdown since its inception was -2.89%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for VTG and BNDD.

Drawdown Indicators

	VTG	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-2.89%	-30.87%	+27.98%
Max Drawdown (1Y) Largest decline over 1 year	-2.89%	-6.09%	+3.20%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.45%	—
Current Drawdown Current decline from peak	-1.94%	-26.13%	+24.19%
Average Drawdown Average peak-to-trough decline	-0.82%	-19.44%	+18.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.09%	2.70%	-1.61%

Volatility

VTG vs. BNDD - Volatility Comparison

The current volatility for Vanguard Total Treasury ETF (VTG) is 1.10%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.73%. This indicates that VTG experiences smaller price fluctuations and is considered to be less risky than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTG	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.10%	2.73%	-1.63%
Volatility (6M) Calculated over the trailing 6-month period	2.64%	8.18%	-5.54%
Volatility (1Y) Calculated over the trailing 1-year period	3.53%	10.36%	-6.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.53%	13.29%	-9.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.53%	13.29%	-9.76%

VTG vs. BNDD - Expense Ratio Comparison

VTG has a 0.03% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

VTG vs. BNDD - Dividend Comparison

VTG's dividend yield for the trailing twelve months is around 3.54%, less than BNDD's 3.60% yield.

Position	TTM	2025	2024	2023	2022	2021
BNDD Quadratic Deflation ETF	3.60%	3.82%	3.85%	4.30%	43.17%	1.04%
VTG Vanguard Total Treasury ETF	3.54%	1.65%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTG and BNDD in my portfolio?

VTG and BNDD have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTG or BNDD?

BNDD has higher volatility (2.73%) compared to VTG (1.10%). In terms of maximum drawdown, VTG dropped -2.89% vs BNDD's -30.87%.

Which ETF is better, VTG or BNDD?

On 1-year performance, BNDD leads with 4.44% vs 3.10% for VTG. On fees, VTG is cheaper at 0.03% per year. On volatility, VTG has been the lower-risk option at 1.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTG or BNDD?

Over the 1-year period, BNDD has performed better with a 4.44% 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 BNDD?

VTG is cheaper with a 0.03% expense ratio, compared with 1.02% for BNDD.

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

BNDD has the higher dividend yield at 3.60%, compared with 3.54% for VTG.

What is the main difference between VTG and BNDD?

They also come from different issuers: Vanguard and KraneShares. Their fees differ too: 0.03% for VTG and 1.02% for BNDD.

Which has better risk-adjusted returns?

VTG currently has the higher Sharpe Ratio (0.77 vs 0.29), 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.