VWESX vs. VTBNX

Last updated Jun 5, 2026

VWESX (Vanguard Long-Term Investment-Grade Fund Investor Shares) and VTBNX (Vanguard Total Bond Market II Index Fund) are both Total Bond Market funds from Vanguard. Over the past 10 years, VWESX returned 1.59%/yr vs 1.53%/yr for VTBNX. Their correlation of 0.92 suggests significant overlap in exposure. VWESX charges 0.22%/yr vs 0.02%/yr for VTBNX.

Performance

VWESX vs. VTBNX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) and Vanguard Total Bond Market II Index Fund (VTBNX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWESX achieves a 0.41% return, which is significantly higher than VTBNX's 0.12% return. Both investments have delivered pretty close results over the past 10 years, with VWESX having a 1.59% annualized return and VTBNX not far behind at 1.53%.

VWESX

• 1D: -0.40%
• 1M: 0.70%
• YTD: 0.41%
• 6M: -0.21%
• 1Y: 5.98%
• 3Y*: 3.36%
• 5Y*: -2.37%
• 10Y*: 1.59%

VTBNX

• 1D: -0.21%
• 1M: 0.14%
• YTD: 0.12%
• 6M: 0.25%
• 1Y: 4.44%
• 3Y*: 3.94%
• 5Y*: 0.09%
• 10Y*: 1.53%

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

VWESX vs. VTBNX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWESX Vanguard Long-Term Investment-Grade Fund Investor Shares	0.41%	7.20%	-2.75%	9.30%	-25.62%	-3.14%	15.39%	20.44%	-6.26%	11.96%
VTBNX Vanguard Total Bond Market II Index Fund	0.12%	7.18%	1.32%	5.68%	-13.12%	-1.82%	7.39%	8.71%	-0.27%	3.62%

Correlation

The correlation between VWESX and VTBNX is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jan 25, 2016	0.92

The correlation between VWESX and VTBNX has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

Return for Risk

VWESX vs. VTBNX — Risk / Return Rank

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

VWESX

VWESX Risk / Return Rank: 13
VWESX Sharpe Ratio Rank: 12
VWESX Sortino Ratio Rank: 12
VWESX Omega Ratio Rank: 11
VWESX Calmar Ratio Rank: 17
VWESX Martin Ratio Rank: 13

VTBNX

VTBNX Risk / Return Rank: 21
VTBNX Sharpe Ratio Rank: 20
VTBNX Sortino Ratio Rank: 22
VTBNX Omega Ratio Rank: 18
VTBNX Calmar Ratio Rank: 23
VTBNX Martin Ratio Rank: 20

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.

VWESX vs. VTBNX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) and Vanguard Total Bond Market II Index Fund (VTBNX). 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.

	VWESX	VTBNX	Difference
Sharpe ratio: Return per unit of total volatility	0.93	1.28	-0.35
Sortino ratio: Return per unit of downside risk	1.38	1.94	-0.56
Omega ratio: Gain probability vs. loss probability	1.16	1.22	-0.06
Calmar ratio: Return relative to maximum drawdown	1.42	1.77	-0.35
Martin ratio: Return relative to average drawdown	3.61	5.27	-1.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWESX vs. VTBNX - Sharpe Ratio Comparison

The current VWESX Sharpe Ratio is 0.93, which is comparable to the VTBNX Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of VWESX and VTBNX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VWESX	VTBNX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.93	1.28	-0.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.20	0.02	-0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.15	0.31	-0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.37	+0.18

Drawdowns

VWESX vs. VTBNX - Drawdown Comparison

The maximum VWESX drawdown since its inception was -36.34%, which is greater than VTBNX's maximum drawdown of -18.71%. Use the drawdown chart below to compare losses from any high point for VWESX and VTBNX.

Drawdown Indicators

	VWESX	VTBNX	Difference
Max Drawdown Largest peak-to-trough decline	-36.34%	-18.71%	-17.63%
Max Drawdown (1Y) Largest decline over 1 year	-5.12%	-2.83%	-2.29%
Max Drawdown (3Y) Largest decline over 3 years	-13.36%	-5.97%	-7.39%
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	-18.05%	-16.43%
Max Drawdown (10Y) Largest decline over 10 years	-36.34%	-18.71%	-17.63%
Current Drawdown Current decline from peak	-19.16%	-2.41%	-16.75%
Average Drawdown Average peak-to-trough decline	-6.74%	-4.87%	-1.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.02%	0.95%	+1.07%

Volatility

VWESX vs. VTBNX - Volatility Comparison

Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) has a higher volatility of 2.50% compared to Vanguard Total Bond Market II Index Fund (VTBNX) at 1.31%. This indicates that VWESX's price experiences larger fluctuations and is considered to be riskier than VTBNX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWESX	VTBNX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.50%	1.31%	+1.19%
Volatility (6M) Calculated over the trailing 6-month period	5.54%	2.78%	+2.76%
Volatility (1Y) Calculated over the trailing 1-year period	7.86%	3.92%	+3.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.10%	5.96%	+6.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.85%	4.93%	+5.92%

VWESX vs. VTBNX - Expense Ratio Comparison

VWESX has a 0.22% expense ratio, which is higher than VTBNX's 0.02% 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

VWESX vs. VTBNX - Dividend Comparison

VWESX's dividend yield for the trailing twelve months is around 5.07%, more than VTBNX's 4.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTBNX Vanguard Total Bond Market II Index Fund	4.06%	3.95%	3.77%	3.13%	2.54%	1.82%	3.12%	2.79%	2.56%	2.52%	2.55%	0.00%
VWESX Vanguard Long-Term Investment-Grade Fund Investor Shares	5.07%	4.95%	5.06%	4.55%	4.43%	4.51%	6.89%	5.01%	4.31%	5.50%	6.14%	7.38%

Frequently Asked Questions

Can I hold both VWESX and VTBNX in my portfolio?

With a correlation of 0.90, VWESX and VTBNX 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, VWESX or VTBNX?

VWESX has higher volatility (2.50%) compared to VTBNX (1.31%). In terms of maximum drawdown, VWESX dropped -36.34% vs VTBNX's -18.71%.

Which has better risk-adjusted returns?

VTBNX currently has the higher Sharpe Ratio (1.28 vs 0.93), 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.