# How Vanguard Total Bond Market ETF (BND) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/bnd
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on BND alone. It places BND (Vanguard Total Bond Market ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where BND stands in the market, and of the alternatives worth a closer look.

Period covered: BND's full trading record, from April 2007 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 6 months, BND fell 2.8% while the S&P 500 rose 9.1%. That said, both BND and the S&P 500 are within a few percent of a record high.
- **Fund or market?:** A move of its own: BND fell 2.0% over the past 3 months, while the S&P 500 rose 3.9%.
- **Long term:** BND turned $10,000 into $11,300 over the past decade, against $42,100 in the S&P 500. BND's 10-year return of 13.2% puts it behind 93% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** Across six sell-offs, BND has typically lost about 21% as much as the S&P 500. In the 2022 bear market, BND fell 14.6%, against 24.5% for the S&P 500. That was more than GOVT (iShares U.S. Treasury Bond ETF, 13.0%) but less than BOND (PIMCO Active Bond Exchange-Traded Fund, 16.5%).
- **Diversification:** Against the S&P 500, BND has a correlation of 0.62 over 5 years, less closely than 72% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. BND cushions stocks less than it used to: its correlation with the S&P 500 rose to 0.62 over the past 5 years, from 0.13 in the 5 years before.
- **Better options**
  - **Popular alternatives:** SGOV (iShares 0-3 Month Treasury Bond ETF) earned more than BND with less volatility over the past 5 years: 3.8% a year at 0.3% volatility, against a loss of 0.4% a year at 6.1%.
  - **Nearby categories and themes:** NEAR (iShares Short Duration Bond Active ETF, short-term bonds) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF, treasury bonds) earned more than BND with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.4% a year at 6.1%.
  - **Whole market:** 98 of the 3,633 stocks and funds worth at least $500 million earned more than BND with less volatility over the past 5 years, among them SGOV (iShares 0-3 Month Treasury Bond ETF), VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and BSV (Vanguard Short-Term Bond ETF).

## How much would $10,000 in BND have grown?

This chart tracks a hypothetical $10,000 investment in BND over the past 19 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of BND over the same span and BND's popular alternatives, among those that traded for the entire period.

- $10,000 invested in BND at the end of September 2007 would have grown to $16,803 by September 2026, less than the $70,725 it would have become in SPY, an S&P 500 fund.
- Five of the six other investments on the chart ended ahead of BND, and NVDA finished highest, at $2,767,416.

## BND at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- BND's deepest decline since it began trading in 2007 was 18.6%, from August 2020 to October 2022. It has not yet climbed back to that peak.
- Over 18 full calendar years, BND's best was 2019, when it returned 8.8%, and its worst was 2022, when it lost 13.1%. It lost money in four of those years.
- BND is 4.5% below its all-time high.

- Type: ETF, Bonds (Asset Management - Bonds)
- Trading since: April 10, 2007
- Assets: $389B
- Expense ratio: 0.03%
- Volatility (5 years): 6.1%; Sharpe ratio: -0.03
- Worst decline ever: −18.6%, from August 6, 2020 to October 20, 2022; not yet back at its high

| Period | BND total return |
| --- | --- |
| 1 month | −0.6% |
| 3 months | −2.0% |
| 6 months | −2.8% |
| year to date | −1.8% |
| 1 year | −2.1% |
| 3 years | +15.7% |
| 5 years | −1.8% |
| 10 years | +13.2% |

## BND against the whole market

Where BND ranks among every stock and fund, and what across the market has done better.

### How does BND rank among all ETFs?

This section ranks BND on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- BND's worst decline of the past 10 years ranks in the top 9% of the 951 ETFs with at least $100 million in assets, where the top fell the least.
- On return for the risk taken (the Sharpe ratio), BND ranks in the bottom 6% of the 1,560 ETFs with at least $100 million in assets.

| Measure | BND | Rank |
| --- | --- | --- |
| 1-year return | −2.1% | 2,199 of 2,485 (top 89%) |
| 3-year return | +15.7% | 1,731 of 1,949 (top 89%) |
| 5-year return | −1.8% | 1,417 of 1,560 (top 91%) |
| 10-year return | +13.2% | 894 of 958 (top 94%) |
| Volatility, 5 years | 6.1% | 185 of 1,560 (top 12%) |
| Sharpe ratio, 5 years | -0.03 | 1,460 of 1,560 (top 94%) |
| Worst decline, past 10 years | −18.6% | 90 of 951 (top 10%) |

### What has beaten BND on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 98 ETFs worth at least $500 million sit in the green region: each earned more than BND over the past 5 years with smaller price swings. That is 3% of the 3,633 screened.
- Among those with at least half BND's swings, BALT has the best return for its risk: 6.3% a year at 3.3% volatility, 45% less than BND's 6.1%, and a Sharpe ratio (return above cash per unit of volatility) of 1.85 against -0.03 for BND.
- Among BND's popular alternatives, SGOV is in the region. SGOV earned 3.8% a year against a loss of 0.4% a year for BND, at 0.3% volatility, 95% less than BND's 6.1%.

### Is there a better investment than BND?

The table below lists investments that beat BND over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among BND's popular alternatives, SGOV earned more than BND with less volatility over the past 5 years: 3.8% a year at 0.3% volatility, against a loss of 0.4% a year at 6.1%.
- Looking beyond its popular alternatives, NEAR (short-term bonds) and VTIP (treasury bonds) earned more than BND with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.4% a year at 6.1%.
- Across the whole market, 98 of the 3,633 stocks and funds worth at least $500 million earned more than BND with less volatility over the past 5 years, among them SGOV, VTIP and BSV.

The 15 strongest of 98 investments that beat BND over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with BND | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BND: Vanguard Total Bond Market ETF (this page) |  | −0.4% | 6.1% | -0.03 | −18.6% | +13.2% |  |  |
| [BIL](https://easycompare.io/research/bil): State Street SPDR Bloomberg 1-3 Month T-Bill ETF | Treasury Bonds | +3.7% | 0.3% | 14.05 | −0.2% | +25.8% | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.26 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VRIG: Invesco Variable Rate Investment Grade ETF | Bonds | +4.7% | 1.3% | 3.51 | −13.1% | +40.5% | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLOT: iShares Floating Rate Bond ETF | Floating Rate Bonds | +4.5% | 1.8% | 2.48 | −13.5% | +35.9% | 0.21 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VNLA: Janus Henderson Short Duration Income ETF | Bonds | +4.0% | 1.1% | 3.77 | −4.5% | — | 0.67 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLDR: Fidelity Low Duration Bond Factor ETF | Bonds | +3.9% | 1.2% | 3.09 | −12.2% | — | 0.82 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NEAR: iShares Short Duration Bond Active ETF | Short-Term Bonds | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.71 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SUB: iShares Short-Term National Muni Bond ETF | Municipal Bonds | +1.4% | 1.7% | 0.85 | −9.4% | +15.6% | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| TBUX: T. Rowe Price Ultra Short-Term Bond ETF | Bonds | +4.1% | 1.1% | 3.85 | −1.8% | — | 0.66 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USTB: VictoryShares Short-Term Bond ETF | Bonds | +3.6% | 2.0% | 1.73 | −5.3% | — | 0.88 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LMBS: First Trust Low Duration Opportunities ETF | Mortgage-Backed Securities | +3.0% | 2.6% | 1.14 | −6.5% | +25.6% | 0.90 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RAVI: Northern Trust Ultra-Short Fixed Income ETF | Bonds | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | Treasury Bonds | +2.7% | 2.9% | 0.94 | −6.3% | +32.7% | 0.72 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| MEAR: iShares Short Maturity Municipal Bond Active ETF | Bonds | +2.4% | 1.0% | 2.37 | −2.7% | +19.3% | 0.75 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## BND against its popular alternatives

The investments people most often weigh against BND, compared period by period and year by year.

### How do BND's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Nine of the 17 popular alternatives, led by SGOV, JCPB and FBND, were both more rewarding and calmer than BND over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, BND returned -0.4% a year, less than the S&P 500's 12.7%, with lower volatility (6.1% against 17.1%).

### Has BND consistently beaten its popular alternatives?

This section compares BND with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Three of the 21 popular alternatives, HYG, BNDX and TIP, outperformed BND in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- SGOV, JCPB and MUB earned more for the risk they took than BND (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
- BIV outperformed BND over all three long-term periods but in none of the five short-term ones, so BND has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of BND | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| BND: Vanguard Total Bond Market ETF (this page) | −2.1% | +15.7% | −1.8% | +13.2% |  |  | -0.03 |
| HYG: iShares iBoxx $ High Yield Corporate Bond ETF | +0.7% | +27.5% | +16.8% | +49.5% | 3/5 short-term, 3/3 long-term | consistent | 0.45 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | −1.4% | +13.4% | +0.8% | +15.0% | 5/5 short-term, 2/3 long-term | consistent | 0.06 |
| TIP: iShares TIPS Bond ETF | −1.5% | +13.3% | −0.3% | +23.5% | 3/5 short-term, 2/3 long-term | consistent | 0.02 |
| [IUSB](https://easycompare.io/research/iusb): iShares Core Universal USD Bond ETF | −1.6% | +17.5% | +0.2% | +16.9% | 1/5 short-term, 3/3 long-term |  | 0.04 |
| FBND: Fidelity Total Bond ETF | −1.9% | +17.8% | +1.5% | +21.9% | 0/5 short-term, 3/3 long-term |  | 0.08 |
| BOND: PIMCO Active Bond Exchange-Traded Fund | −1.9% | +19.5% | −0.3% | +19.3% | 0/5 short-term, 3/3 long-term |  | 0.02 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | −2.7% | +16.8% | −0.7% | +15.7% | 0/5 short-term, 3/3 long-term |  | 0.01 |
| JCPB: JPMorgan Core Plus Bond ETF | −1.3% | +19.8% | +3.0% | — | 2/5 short-term, 2/3 long-term |  | 0.14 |
| GTO: Invesco Total Return Bond ETF | −1.7% | +18.3% | −2.1% | +25.8% | 0/5 short-term, 2/3 long-term |  | -0.05 |
| [MUB](https://easycompare.io/research/mub): iShares National Muni Bond ETF | −1.7% | +10.8% | +1.5% | +17.8% | 0/5 short-term, 2/3 long-term |  | 0.09 |
| TOTL: State Street DoubleLine Total Return Tactical ETF | −2.6% | +17.4% | +0.7% | +12.7% | 0/5 short-term, 2/3 long-term |  | 0.05 |
| FIGB: Fidelity Investment Grade Bond ETF | −2.2% | +16.5% | −1.2% | — | 0/5 short-term, 2/3 long-term |  | -0.01 |
| UITB: VictoryShares Core Intermediate Bond ETF | −1.9% | +16.6% | +0.8% | — | 0/5 short-term, 2/3 long-term |  | 0.06 |
| VTC: Vanguard Total Corporate Bond ETF | −2.7% | +19.2% | −0.9% | — | 0/5 short-term, 2/3 long-term |  | 0.01 |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | +3.4% | +13.8% | +20.3% | — | 5/5 short-term, 1/3 long-term |  | 13.25 |
| SCHZ: Schwab U.S. Aggregate Bond ETF | −1.9% | +16.2% | −1.6% | +15.0% | 0/5 short-term, 1/3 long-term |  | -0.02 |
| CGCP: Capital Group Core Plus Income ETF | −2.0% | +18.5% | — | — | 0/5 short-term, 1/3 long-term |  | — |
| [GOVT](https://easycompare.io/research/govt): iShares U.S. Treasury Bond ETF | −1.8% | +12.7% | −3.5% | +7.1% | 2/5 short-term, 0/3 long-term |  | -0.09 |
| [AGG](https://easycompare.io/research/agg): iShares Core U.S. Aggregate Bond ETF | −1.9% | +16.2% | −1.5% | +13.3% | 0/5 short-term, 0/3 long-term |  | -0.02 |
| SPAB: State Street SPDR Portfolio Aggregate Bond ETF | −1.9% | +16.1% | −1.6% | +13.1% | 0/5 short-term, 0/3 long-term |  | -0.02 |
| BBAG: JPMorgan BetaBuilders U.S. Aggregate Bond ETF | −1.9% | +16.1% | −2.0% | — | 0/5 short-term, 0/3 long-term |  | -0.05 |

### How did BND do year by year?

This table shows each investment's total return in every full calendar year since 2008, along with where BND ranked among its popular alternatives each year.

- BND finished ahead of the S&P 500 in four of its 18 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, JCPB came out ahead of BND most often, in five of the six years both traded.
- Ranked against its popular alternatives each year, BND finished in the top quarter in one of 18 years and in the bottom quarter in two. In 2025, it ranked 12 of 18.

| Year | BND | SPY |
| --- | --- | --- |
| 2025 | +7.1% | +17.7% |
| 2024 | +1.4% | +24.9% |
| 2023 | +5.7% | +26.2% |
| 2022 | −13.1% | −18.2% |
| 2021 | −1.9% | +28.7% |
| 2020 | +7.7% | +18.3% |
| 2019 | +8.8% | +31.2% |
| 2018 | −0.1% | −4.6% |
| 2017 | +3.6% | +21.7% |
| 2016 | +2.5% | +12.0% |

## Risk and diversification

How BND has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were BND's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- Not every decline was the market's doing: BND fell 18.6% from August 2020 to October 2022, while the S&P 500 rose 13.0%.
- In two of BND's four worst declines, it fell less than the S&P 500 did over the same dates.
- None of these declines kept BND below its old high for long; the longest climb back took eight months.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −18.6% | August 6, 2020 | October 20, 2022 | not yet | +13.0% | 2022 bear market |
| −9.3% | September 15, 2008 | October 10, 2008 | December 15, 2008 | −25.9% | 2008 financial crisis |
| −8.7% | March 6, 2020 | March 12, 2020 | May 21, 2020 | −16.6% | Covid crash |
| −5.2% | May 2, 2013 | September 5, 2013 | May 14, 2014 | +4.4% |  |

### How did BND do in stock market crashes?

This section measures how far BND, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- BND fell less than the S&P 500 in all nine crashes it has traded through. The clearest case was the 2008 financial crisis, when BND fell 9.3% and the S&P 500 fell 55.2%.
- None of its popular alternatives fell less than BND in most of the crashes they both traded through.

| Crash | Dates | BND fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −9.3% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −0.2% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −1.1% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −1.5% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −0.9% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −1.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −8.7% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −14.6% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | 0.0% | −3.4% |

### How closely does BND move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, BND captured 13% of the S&P 500's gains in rising months and 19% of its losses in falling months, with a beta of 0.15. Its share of the market's losses was slightly larger than its share of the gains.
- Ten of the 11 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than BND's 0.69, led by TIP, HYG and BNDX.
- BNDX took just 13% of the S&P 500's losses, against 19% for BND, while still keeping 11% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| BND: Vanguard Total Bond Market ETF (this page) | 13.0% | 19.0% | 0.15 |
| HYG: iShares iBoxx $ High Yield Corporate Bond ETF | 34.0% | 40.0% | 0.39 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | 11.0% | 13.0% | 0.14 |
| TIP: iShares TIPS Bond ETF | 15.0% | 17.0% | 0.18 |
| [IUSB](https://easycompare.io/research/iusb): iShares Core Universal USD Bond ETF | 15.0% | 20.0% | 0.16 |
| FBND: Fidelity Total Bond ETF | 17.0% | 21.0% | 0.18 |
| BOND: PIMCO Active Bond Exchange-Traded Fund | 16.0% | 22.0% | 0.19 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | 13.0% | 18.0% | 0.15 |
| GTO: Invesco Total Return Bond ETF | 19.0% | 24.0% | 0.22 |
| [MUB](https://easycompare.io/research/mub): iShares National Muni Bond ETF | 14.0% | 18.0% | 0.14 |
| TOTL: State Street DoubleLine Total Return Tactical ETF | 13.0% | 18.0% | 0.15 |
| [GOVT](https://easycompare.io/research/govt): iShares U.S. Treasury Bond ETF | 6.0% | 8.0% | 0.06 |

### What diversifies BND?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in BND into DBMF would have cut the portfolio's volatility by 33% over the past 5 years and raised its annual return (-0.7% for BND alone, +1.6% for the mix).
- FIX made money in four of the four calendar years in which BND lost money.
- Among large ETFs, DXJ, EMLP and GLD have moved largely independently of BND over the past 5 years, with correlations of 0.49 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with BND | 5Y return | Volatility | Sharpe | Rose in BND's 4 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.24 | +225% | 19.1% | 1.34 | 3 of 4 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.49 | +101% | 14.5% | 1.04 | 3 of 4 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.41 | +126% | 18.9% | 0.96 | 0 of 4 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.42 | +136% | 20.8% | 0.93 | 1 of 4 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.10 | +177% | 25.5% | 0.93 | 3 of 4 |
| AMLP: Alerian MLP ETF | 0.22 | +111% | 18.9% | 0.89 | 3 of 4 |
| PTLC: Pacer Trendpilot US Large Cap ETF | 0.47 | +57.4% | 11.8% | 0.83 | 2 of 4 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.55 | +59.7% | 12.4% | 0.82 | 2 of 4 |

## Common questions

### What was BND's worst drawdown?

BND's deepest decline since it began trading in 2007 was 18.6%, from August 2020 to October 2022. It has not yet climbed back to that peak. Because BND launched in April 2007, that record does not include the dot-com bust.

### What were BND's best and worst years?

Over 18 full calendar years, BND's best year was 2019, when it returned 8.8%. Its worst was 2022, with a return of -13.1%.

### Is there a better investment than BND?

Among BND's popular alternatives, SGOV earned more than BND with less volatility over the past 5 years: 3.8% a year at 0.3% volatility, against a loss of 0.4% a year at 6.1%. Looking beyond its popular alternatives, NEAR (short-term bonds) and VTIP (treasury bonds) earned more than BND with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.4% a year at 6.1%.

### Is BND more volatile than the S&P 500?

No. BND's volatility over the past 5 years was 6.1%, 35% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, BND's return lands within 6.1% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is BND's Sharpe ratio?

BND's Sharpe ratio over the past 5 years was -0.03, against 0.79 for the S&P 500, so BND earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is BND with the S&P 500?

Over the past 5 years, BND's monthly returns had a correlation of 0.62 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against BND instead: the lower it is, the more that option would diversify a BND holding.

### What are the best alternatives to BND?

Of the 21 popular alternatives we compared, three outperformed BND in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: HYG, BNDX and TIP.

### Did BND outperform the S&P 500?

BND finished ahead of the S&P 500 (SPY) in four of 18 full calendar years. In 2025, it returned +7.1%, against +17.7% for the index.

### How did BND do in stock market crashes?

BND fell less than the S&P 500 (SPY) in nine of the nine major crashes it has traded through, and further in no. The clearest case was the 2008 financial crisis, when BND fell 9.3% and the S&P 500 fell 55.2%.

### What diversifies BND?

These had a low correlation with BND over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.24), EMLP (correlation 0.49) and GLD (correlation 0.41); among large stocks, CAH (correlation 0.24), CLS (correlation 0.10) and FIX (correlation 0.19). A correlation near zero means the two have moved largely independently.

## More research

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- [iShares Core U.S. Aggregate Bond ETF (AGG) Performance, Alternatives and Market Rank](https://easycompare.io/research/agg)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)
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## Explore further

- Full page with charts: https://easycompare.io/research/bnd
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against BND live: https://betterthanspy.com/?b=BND&utm_source=easycompare&utm_medium=research