How the Largest Bond ETFs Performed

Each month, we check in on the performance of the largest US bond exchange-traded funds. When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.

Out of the 10 largest US bond ETFs, the top performer last month was the $122 billion Vanguard Total International Bond Index Fund BNDX, which gained 0.49%. The bottom performer was the $70.5 billion Vanguard Short-Term Inflation-Protected Securities Index Fund VTIP, which lost 0.32%.

Here’s more about the performance of the largest bond ETFs.

Vanguard Total Bond Market Index Fund

• Morningstar Medalist Rating

  : Gold

• : Intermediate Core Bond

In June, the Vanguard Total Bond Market Index Fund rose 0.23%, while the average intermediate core bond fund gained 0.24%. The fund placed in the 60th percentile for performance. The $394.4 billion fund has climbed 3.7% over the past 12 months, performing roughly in line with the average fund in its category, which rose 3.8%. The Vanguard fund, launched in April 2007, has climbed 4.15% over the past three years annualized and gained 0.07% annualized over the past five years.

iShares Core US Aggregate Bond ETF

• Morningstar Medalist Rating

  : Gold

• : Intermediate Core Bond

In June, the iShares Core US Aggregate Bond ETF rose 0.25%, while the average intermediate core bond fund gained 0.24%. The fund placed in the 45th percentile for performance. The $138.1 billion fund has climbed 3.80% over the past 12 months, performing roughly in line with the average fund in its category, which rose 3.80%. The iShares fund, launched in September 2003, has climbed 4.16% over the past three years annualized and gained 0.09% annualized over the past five years.

Vanguard Total International Bond Index Fund

• Morningstar Medalist Rating

  : Gold

• : Global Bond-USD Hedged

In June, the Vanguard Total International Bond Index Fund rose 0.49%, while the average global bond-USD hedged fund gained 0.47%. The fund placed in the 40th percentile for performance. The $122 billion fund has climbed 2.38% over the past 12 months, underperforming the average fund in its category, which rose 3.47%. The Vanguard fund, launched in May 2013, has climbed 4.31% over the past three years annualized and gained 0.48% annualized over the past five years.

iShares 0-3 Month Treasury Bond ETF

• Morningstar Medalist Rating

  : Neutral

• : Ultrashort Bond

The iShares 0-3 Month Treasury Bond ETF gained 0.30% in June, outperforming the average fund in the ultrashort bond category, which rose 0.25%. The $94.7 billion fund has gained 3.90% over the past 12 months, while the average fund in its category is up 4.22%. The iShares fund, launched in May 2020, has climbed 4.68% over the past three years annualized and gained 3.59% annualized over the past five years.

Vanguard Short-Term Inflation-Protected Securities Index Fund

• Morningstar Medalist Rating

  : Gold

• : Short-Term Inflation-Protected Bond

The Vanguard Short-Term Inflation-Protected Securities Index Fund lost 0.32% in June, falling less than the average fund in the short-term inflation-protected bond category, which fell 0.42%. The $70.5 billion fund has gained 3.64% over the past 12 months, while the average fund in its category is up 3.36%. The Vanguard fund, launched in October 2012, has climbed 5.17% over the past three years annualized and gained 3.30% annualized over the past five years.

Vanguard Short-Term Bond Index Fund

• Morningstar Medalist Rating

  : Gold

• : Short-Term Bond

The Vanguard Short-Term Bond Index Fund gained 0.07% in June, underperforming the average fund in the short-term bond category, which rose 0.12%. The $70.4 billion fund has gained 2.99% over the past 12 months, while the average fund in its category is up 3.72%. The Vanguard fund, launched in April 2007, has climbed 4.65% over the past three years annualized and gained 1.71% annualized over the past five years.

Vanguard Intermediate-Term Corporate Bond Index Fund

• Morningstar Medalist Rating

  : Gold

• : Corporate Bond

The Vanguard Intermediate-Term Corporate Bond Index Fund gained 0.12% in June, underperforming the average fund in the corporate bond category, which rose 0.17%. The $68.7 billion fund has gained 4.54% over the past 12 months, while the average fund in its category is up 4.21%. The Vanguard fund, launched in November 2009, has climbed 6.21% over the past three years annualized and gained 1.16% annualized over the past five years.

Vanguard Intermediate-Term Bond Index Fund

• Morningstar Medalist Rating

  : Neutral

• : Intermediate Core Bond

The Vanguard Intermediate-Term Bond Index Fund gained 0.17% in June, underperforming the average fund in the intermediate core bond category, which rose 0.24%. The $52.2 billion fund has gained 3.39% over the past 12 months, while the average fund in its category is up 3.80%. The Vanguard fund, launched in April 2007, has climbed 4.64% over the past three years annualized and gained 0.25% annualized over the past five years.

Vanguard Short-Term Corporate Bond Index Fund

• Morningstar Medalist Rating

  : Gold

• : Short-Term Bond

In June, the Vanguard Short-Term Corporate Bond Index Fund rose 0.12%, while the average short-term bond fund gained 0.12%. The fund placed in the 62nd percentile for performance. The $50.5 billion fund has climbed 3.85% over the past 12 months, performing roughly in line with the average fund in its category, which rose 3.72%. The Vanguard fund, launched in November 2009, has climbed 5.68% over the past three years annualized and gained 2.41% annualized over the past five years.

Vanguard Intermediate-Term Treasury Index Fund

• Morningstar Medalist Rating

  : Gold

• : Intermediate Government

In June, the Vanguard Intermediate-Term Treasury Index Fund rose 0.13%, while the average intermediate government fund gained 0.20%. The fund placed in the 68th percentile for performance. The $49.5 billion fund has climbed 2.43% over the past 12 months, underperforming the average fund in its category, which rose 2.74%. The Vanguard fund, launched in November 2009, has climbed 3.85% over the past three years annualized and gained 0.15% annualized over the past five years.