BND alternatives and similar ETFs

BND alternatives at a glance#

Each fund below can stand in for BND, closest first. “Same kind” funds hold the same kind of bonds through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How BND and its alternatives did over the same dates#

Each row measures the alternative and BND on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each BND alternative, compared#

AGG: iShares Core U.S. Aggregate Bond ETF#

AGG also holds a broad mix of US bonds: government, company and mortgage bonds. It tracks the Bloomberg US Aggregate Bond Index, while BND tracks the Bloomberg U.S. Aggregate Float Adjusted Index.

It charges 0.03% a year, about $3 on $10,000, against $3 for BND. It held 13,416 holdings, against 11,434 for BND.

From April 2007 to October 2026, AGG returned about 2.9% a year and BND returned about 2.9% a year. Over about the last five years they moved almost exactly together (correlation 1.00).

Read AGG vs BND for the full side-by-side, or the AGG fund page.

SCHZ: Schwab U.S. Aggregate Bond ETF#

SCHZ also holds a broad mix of US bonds: government, company and mortgage bonds. It tracks the Bloomberg US Aggregate Bond Index, while BND tracks the Bloomberg U.S. Aggregate Float Adjusted Index.

It charges 0.03% a year, about $3 on $10,000, against $3 for BND. It held 12,355 holdings, against 11,434 for BND.

From July 2011 to October 2026, SCHZ returned about 1.9% a year and BND returned about 2.0% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the SCHZ fund page for its returns by year and worst drop.

IUSB: iShares Core Universal USD Bond ETF#

IUSB also holds a broad mix of US bonds: government, company and mortgage bonds. It tracks the Bloomberg U.S. Universal Index, while BND tracks the Bloomberg U.S. Aggregate Float Adjusted Index.

It charges 0.06% a year, about $6 on $10,000, against $3 for BND. It held 18,251 holdings, against 11,434 for BND.

From June 2014 to October 2026, IUSB returned about 2.0% a year and BND returned about 1.8% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the IUSB fund page for its returns by year and worst drop.

IEF: iShares 7-10 Year Treasury Bond ETF#

IEF is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while BND holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.15% a year, about $15 on $10,000, against $3 for BND. It held 17 holdings, against 11,434 for BND.

From April 2007 to October 2026, IEF returned about 3.1% a year and BND returned about 2.9% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the IEF fund page for its returns by year and worst drop.

VGIT: Vanguard Intermediate-Term Treasury ETF#

VGIT is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while BND holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.03% a year, about $3 on $10,000, against $3 for BND. It held 102 holdings, against 11,434 for BND.

From November 2009 to October 2026, VGIT returned about 2.0% a year and BND returned about 2.3% a year. Over about the last five years they moved almost exactly together (correlation 0.96).

Read the VGIT fund page for its returns by year and worst drop.

VCIT: Vanguard Intermediate-Term Corporate Bond ETF#

VCIT is a looser match. It holds bonds from large US companies with strong credit ratings, while BND holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.03% a year, about $3 on $10,000, against $3 for BND. It held 2,342 holdings, against 11,434 for BND.

From November 2009 to October 2026, VCIT returned about 4.0% a year and BND returned about 2.3% a year. Over about the last five years they moved almost exactly together (correlation 0.96).

Read the VCIT fund page for its returns by year and worst drop.

LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF#

LQD is a looser match. It holds bonds from large US companies with strong credit ratings, while BND holds a broad mix of US bonds: government, company and mortgage bonds.

It charges 0.14% a year, about $14 on $10,000, against $3 for BND. It held 3,171 holdings, against 11,434 for BND.

From April 2007 to October 2026, LQD returned about 3.9% a year and BND returned about 2.9% a year. Over about the last five years they moved together on most days (correlation 0.94).

Read the LQD fund page for its returns by year and worst drop.

BND versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to BND from each other company on this page:

• iShares (BlackRock): AGG, iShares Core U.S. Aggregate Bond ETF (same kind of fund, 0.03% a year)
• Schwab: SCHZ, Schwab U.S. Aggregate Bond ETF (same kind of fund, 0.03% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between BND and its alternatives#

• What it tracks. A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, BND costs about $3 a year.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping BND to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as AGG, SCHZ or IUSB, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test BND and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add BND and AGG, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as BND. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like BND over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with BND only on days both traded. Read what a backtest simulates for more on these measures.