BND vs FANG: Correlation
Vanguard Total Bond Market ETF (BND) and Diamondback Energy (FANG) show a negative relationship: their 3-year correlation of weekly returns is -0.25.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BND and FANG?
Over the past 3 years, BND and FANG moved with a correlation of -0.25, which is negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.58 versus -0.25 over 3 years. Over 5 years the correlation is -0.16, and the annualized covariance of weekly returns is -44.9 %².
By 3-year correlation, FANG places #25 of the 33 assets tracked against BND. Correlation aside, the last 12 months split them widely, with FANG ahead by 37.3 points (+2.3% versus +39.6%). This link changes with the market regime, having swung between -0.57 and 0.03 on a rolling one-year basis. Note the risk asymmetry: FANG runs 6.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
BND vs FANG: side by side
| BND (Vanguard Total Bond Market ETF) | FANG (Diamondback Energy) | |
|---|---|---|
| 1-year return | +2.3% | +39.6% |
| 5-year return | -1.3% | +224.9% |
| Volatility (ann.) | 5.2% | 34.1% |
| Beta vs S&P 500 | 0.06 | 0.32 |
| Max drawdown (3Y) | -4.7% | -42.1% |
| Market cap | – | $56.1B |
| P/E (trailing) | – | 38.0 |
| Dividend yield | – | 2.13% |
| Sector / category | ETF · Bonds | Energy |
Year-by-year returns
| Year | BND | FANG |
|---|---|---|
| 2022 | -13.1% | +35.3% |
| 2023 | +5.7% | +19.7% |
| 2024 | +1.4% | +10.3% |
| 2025 | +7.1% | -5.6% |
| 2026 | +0.2% | +35.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BND and FANG good diversifiers for each other?
Yes. With a correlation of -0.25, BND and FANG have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between BND and FANG?
As of 2026-08-27, the correlation of weekly returns between BND and FANG is -0.25 over 3 years, -0.58 over 1 year and -0.16 over 5 years.
Is FANG a good diversifier for BND?
Yes. With a correlation of -0.25, BND and FANG have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.25 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Hubs: BND correlations · FANG correlations
