PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
VWO vs. BND
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VWO vs. BND

Last updated Jun 4, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging 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 10 years, VWO returned 8.85%/yr vs 1.58%/yr for BND. At a correlation of -0.10, they often move in opposite directions. VWO charges 0.08%/yr vs 0.03%/yr for BND.

Performance

VWO vs. BND - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, VWO achieves a 12.22% return, which is significantly higher than BND's 0.27% return. Over the past 10 years, VWO has outperformed BND with an annualized return of 8.85%, while BND has yielded a comparatively lower 1.58% annualized return.

VWO

1D
-1.41%
1M
2.72%
YTD
12.22%
6M
13.79%
1Y
30.72%
3Y*
18.02%
5Y*
5.17%
10Y*
8.85%

BND

1D
-0.19%
1M
0.27%
YTD
0.27%
6M
0.12%
1Y
5.11%
3Y*
3.96%
5Y*
0.09%
10Y*
1.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VWO vs. BND - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VWO
Vanguard FTSE Emerging Markets ETF		12.22%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%
BND
Vanguard Total Bond Market ETF		0.27%7.08%1.38%5.65%-13.11%-1.86%7.71%8.84%-0.12%3.57%

Correlation

The correlation between VWO and BND is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.31

Correlation (3Y)
Calculated over the trailing 3-year period

0.22

Correlation (5Y)
Calculated over the trailing 5-year period

0.15

Correlation (10Y)
Calculated over the trailing 10-year period

0.06

Correlation (All Time)
Calculated using the full available price history since Apr 11, 2007

-0.10

The correlation between VWO and BND shifts across timeframes, from -0.10 (all time) to 0.31 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard FTSE Emerging Markets ETF

Vanguard Total Bond Market ETF

Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX
Often compared with BND:
BND vs. BNDXBND vs. FXNAXBND vs. AGGBND vs. FBNDBND vs. BNDWBND vs. TLTBND vs. VBTLX

Return for Risk

VWO vs. BND — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VWO
VWO Risk / Return Rank: 5656
Overall Rank
VWO Sharpe Ratio Rank: 5656
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 5555
Sortino Ratio Rank
VWO Omega Ratio Rank: 5757
Omega Ratio Rank
VWO Calmar Ratio Rank: 5454
Calmar Ratio Rank
VWO Martin Ratio Rank: 5656
Martin Ratio Rank
BND
BND Risk / Return Rank: 3737
Overall Rank
BND Sharpe Ratio Rank: 3737
Sharpe Ratio Rank
BND Sortino Ratio Rank: 3939
Sortino Ratio Rank
BND Omega Ratio Rank: 3535
Omega Ratio Rank
BND Calmar Ratio Rank: 3838
Calmar Ratio Rank
BND Martin Ratio Rank: 3636
Martin Ratio Rank
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.

VWO vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.

VWOBNDDifference
Sharpe ratioReturn per unit of total volatility
1.94
1.36

+0.58

Sortino ratioReturn per unit of downside risk
2.69
2.03

+0.66

Omega ratioGain probability vs. loss probability

1.36

1.24

+0.12

Calmar ratioReturn relative to maximum drawdown

2.76

1.92

+0.85

Martin ratioReturn relative to average drawdown

9.96

5.80

+4.16

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWO vs. BND - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.94, which is higher than the BND Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of VWO 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.

Loading charts...

Sharpe Ratios by Period

VWOBNDDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.94

1.36

+0.58

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.30

0.01

+0.29

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.46

0.29

+0.18

Sharpe Ratio (All Time)

Calculated using the full available price history

0.27

0.59

-0.32

Drawdowns

VWO vs. BND - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VWO and BND.

Loading charts...

Drawdown Indicators

VWOBNDDifference

Max Drawdown

Largest peak-to-trough decline

-67.68%

-18.58%

-49.10%

Max Drawdown (1Y)

Largest decline over 1 year

-11.17%

-2.68%

-8.49%

Max Drawdown (3Y)

Largest decline over 3 years

-17.37%

-5.92%

-11.45%

Max Drawdown (5Y)

Largest decline over 5 years

-32.64%

-17.91%

-14.73%

Max Drawdown (10Y)

Largest decline over 10 years

-36.39%

-18.58%

-17.81%

Current Drawdown

Current decline from peak

-1.41%

-2.37%

+0.96%

Average Drawdown

Average peak-to-trough decline

-15.82%

-3.06%

-12.76%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.09%

0.88%

+2.21%

Volatility

VWO vs. BND - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 5.61% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that VWO'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.

Loading charts...

Volatility by Period

VWOBNDDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.61%

1.23%

+4.38%

Volatility (6M)

Calculated over the trailing 6-month period

13.22%

2.66%

+10.56%

Volatility (1Y)

Calculated over the trailing 1-year period

15.89%

3.78%

+12.11%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.37%

6.02%

+11.35%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.20%

5.53%

+13.67%

VWO vs. BND - Expense Ratio Comparison

VWO has a 0.08% 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

VWO vs. BND - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.40%, less than BND's 3.97% yield.

PositionTTM20252024202320222021202020192018201720162015
BND
Vanguard Total Bond Market ETF		3.97%3.86%3.67%3.09%2.60%2.12%2.38%2.72%2.81%2.54%2.51%2.57%
VWO
Vanguard FTSE Emerging Markets ETF		2.40%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%

Frequently Asked Questions

VWO and BND have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (5.61%) compared to BND (1.23%). In terms of maximum drawdown, VWO dropped -67.68% vs BND's -18.58%.

On 10-year performance, VWO leads with 8.85% vs 1.58% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VWO has performed better with a 8.85% return vs 1.58%. 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 0.08% for VWO.

BND has the higher dividend yield at 3.97%, compared with 2.40% for VWO.

VWO is categorized as Emerging Markets Equities, while BND is Total Bond Market. VWO tracks FTSE Emerging Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.08% for VWO and 0.03% for BND.

VWO currently has the higher Sharpe Ratio (1.94 vs 1.36), 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.

Portfolio Optimizer

Find the right allocation for VWO and BND

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer