VUSTX vs. BND

Last updated Jun 12, 2026

VUSTX (Vanguard Long-Term Treasury Fund Investor Shares) and BND (Vanguard Total Bond Market ETF) are both funds - VUSTX is a Government Bonds fund managed by Vanguard, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 10 years, VUSTX returned -1.30%/yr vs 1.60%/yr for BND. Their correlation of 0.87 suggests significant overlap in exposure. VUSTX charges 0.20%/yr vs 0.03%/yr for BND.

Performance

VUSTX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Treasury Fund Investor Shares (VUSTX) 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, VUSTX achieves a -1.07% return, which is significantly lower than BND's 0.64% return. Over the past 10 years, VUSTX has underperformed BND with an annualized return of -1.30%, while BND has yielded a comparatively higher 1.60% annualized return.

VUSTX

• 1D: -0.26%
• 1M: 0.13%
• YTD: -1.07%
• 6M: -1.20%
• 1Y: 3.68%
• 3Y*: -0.78%
• 5Y*: -5.75%
• 10Y*: -1.30%

BND

• 1D: 0.58%
• 1M: 0.58%
• YTD: 0.64%
• 6M: 0.72%
• 1Y: 4.91%
• 3Y*: 4.06%
• 5Y*: 0.06%
• 10Y*: 1.60%

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

VUSTX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUSTX Vanguard Long-Term Treasury Fund Investor Shares	-1.07%	5.55%	-6.41%	3.33%	-29.58%	-4.93%	18.20%	14.14%	-1.89%	8.60%
BND Vanguard Total Bond Market ETF	0.64%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%

Correlation

The correlation between VUSTX and BND is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007	0.87

The correlation between VUSTX and BND has been stable across timeframes, ranging from 0.87 to 0.94 - a consistent structural relationship.

Return for Risk

VUSTX vs. BND — Risk / Return Rank

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

VUSTX

VUSTX Risk / Return Rank: 7
VUSTX Sharpe Ratio Rank: 8
VUSTX Sortino Ratio Rank: 7
VUSTX Omega Ratio Rank: 7
VUSTX Calmar Ratio Rank: 8
VUSTX Martin Ratio Rank: 7

BND

BND Risk / Return Rank: 44
BND Sharpe Ratio Rank: 46
BND Sortino Ratio Rank: 48
BND Omega Ratio Rank: 43
BND Calmar Ratio Rank: 45
BND Martin Ratio Rank: 40

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.

VUSTX vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury Fund Investor Shares (VUSTX) 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.

	VUSTX	BND	Difference
Sharpe ratio: Return per unit of total volatility	0.46	1.32	-0.86
Sortino ratio: Return per unit of downside risk	0.71	1.98	-1.26
Omega ratio: Gain probability vs. loss probability	1.08	1.23	-0.15
Calmar ratio: Return relative to maximum drawdown	0.57	1.84	-1.27
Martin ratio: Return relative to average drawdown	1.45	5.38	-3.93

VUSTX vs. BND - Sharpe Ratio Comparison

The current VUSTX Sharpe Ratio is 0.46, which is lower than the BND Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of VUSTX 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

VUSTX vs. BND - Drawdown Comparison

The maximum VUSTX drawdown since its inception was -46.37%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VUSTX and BND.

Drawdown Indicators

	VUSTX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-18.58%	-27.79%
Max Drawdown (1Y) Largest decline over 1 year	-7.19%	-2.68%	-4.51%
Max Drawdown (3Y) Largest decline over 3 years	-17.70%	-5.92%	-11.78%
Max Drawdown (5Y) Largest decline over 5 years	-41.45%	-17.91%	-23.54%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	-18.58%	-27.79%
Current Drawdown Current decline from peak	-37.11%	-2.00%	-35.11%
Average Drawdown Average peak-to-trough decline	-9.36%	-3.06%	-6.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	0.91%	+1.90%

Volatility

VUSTX vs. BND - Volatility Comparison

Vanguard Long-Term Treasury Fund Investor Shares (VUSTX) has a higher volatility of 2.51% compared to Vanguard Total Bond Market ETF (BND) at 1.27%. This indicates that VUSTX's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VUSTX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.51%	1.27%	+1.24%
Volatility (6M) Calculated over the trailing 6-month period	6.08%	2.75%	+3.33%
Volatility (1Y) Calculated over the trailing 1-year period	8.91%	3.75%	+5.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.60%	6.03%	+8.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.76%	5.53%	+8.23%

VUSTX vs. BND - Expense Ratio Comparison

VUSTX has a 0.20% 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

VUSTX vs. BND - Dividend Comparison

VUSTX's dividend yield for the trailing twelve months is around 4.51%, more than BND's 3.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.95%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VUSTX Vanguard Long-Term Treasury Fund Investor Shares	4.51%	4.29%	4.03%	3.33%	2.93%	4.21%	10.38%	2.82%	2.82%	2.64%	5.27%	5.52%

Frequently Asked Questions

Can I hold both VUSTX and BND in my portfolio?

With a correlation of 0.93, VUSTX 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, VUSTX or BND?

VUSTX has higher volatility (2.51%) compared to BND (1.27%). In terms of maximum drawdown, VUSTX dropped -46.37% vs BND's -18.58%.

Which has better risk-adjusted returns?

BND currently has the higher Sharpe Ratio (1.32 vs 0.46), 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.