VTP vs. BND
VTP (Vanguard Total Inflation-Protected Securities ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VTP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked 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, VTP returned 3.25% vs 3.58% for BND. Their correlation of 0.85 suggests significant overlap in exposure. VTP charges 0.05%/yr vs 0.03%/yr for BND.
Performance
VTP vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VTP achieves a 0.82% return, which is significantly higher than BND's -0.17% return.
VTP
- 1D
- -0.20%
- 1M
- -0.57%
- 6M
- 0.58%
- YTD
- 0.82%
- 1Y
- 3.25%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BND
- 1D
- -0.37%
- 1M
- -0.68%
- 6M
- -0.37%
- YTD
- -0.17%
- 1Y
- 3.58%
- 3Y*
- 3.76%
- 5Y*
- -0.22%
- 10Y*
- 1.43%
VTP vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VTP Vanguard Total Inflation-Protected Securities ETF | 0.82% | 2.46% |
BND Vanguard Total Bond Market ETF | -0.17% | 3.76% |
Correlation
The correlation between VTP and BND is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.85 |
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025 | 0.85 |
The correlation between VTP and BND has been stable across timeframes, ranging from 0.85 to 0.85 - a consistent structural relationship.
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Return for Risk
VTP vs. BND — Risk / Return Rank
VTP
BND
VTP vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Inflation-Protected Securities ETF (VTP) 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.
| VTP | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.01 | ||
| Sortino ratioReturn per unit of downside risk | -0.01 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.17 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.70 | 1.34 | +0.36 |
| Martin ratioReturn relative to average drawdown | 4.86 | 3.72 | +1.14 |
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Drawdowns
VTP vs. BND - Drawdown Comparison
The maximum VTP drawdown since its inception was -1.92%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VTP and BND.
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Drawdown Indicators
| VTP | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.92% | -18.58% | +16.66% |
Max Drawdown (1Y)Largest decline over 1 year | -1.92% | -2.68% | +0.76% |
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 | -1.01% | -2.79% | +1.78% |
Average DrawdownAverage peak-to-trough decline | -0.53% | -3.06% | +2.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.67% | 0.97% | -0.30% |
Volatility
VTP vs. BND - Volatility Comparison
Vanguard Total Inflation-Protected Securities ETF (VTP) and Vanguard Total Bond Market ETF (BND) have volatilities of 1.24% and 1.24%, 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.
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Volatility by Period
| VTP | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.24% | 1.24% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 2.47% | 2.86% | -0.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.36% | 3.72% | -0.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.35% | 6.03% | -2.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 5.53% | -2.18% |
VTP vs. BND - Expense Ratio Comparison
VTP has a 0.05% 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
VTP vs. BND - Dividend Comparison
VTP's dividend yield for the trailing twelve months is around 2.98%, less than BND's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 4.01% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VTP Vanguard Total Inflation-Protected Securities ETF | 2.98% | 1.56% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VTP and BND have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.24%) compared to VTP (1.24%). In terms of maximum drawdown, VTP dropped -1.92% vs BND's -18.58%.
On 1-year performance, BND leads with 3.58% vs 3.25% for VTP. On fees, BND is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, BND has performed better with a 3.58% return vs 3.25%. 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 0.05% for VTP.
BND has the higher dividend yield at 4.01%, compared with 2.98% for VTP.
VTP is categorized as Inflation-Protected Bonds, while BND is Total Bond Market. VTP tracks ICE U.S. Treasury Inflation Linked Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.05% for VTP and 0.03% for BND.
VTP currently has the higher Sharpe Ratio (0.97 vs 0.97), 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.
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