BND vs BNDW
Vanguard Total Bond Market ETF vs Vanguard Total World Bond ETF
Which is better, BND or BNDW?
Intermediate Term Bond against Long Term Mid Quality.
BND has a lower expense ratio. BND led over 3Y and the full window, BNDW over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.97.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BND | BNDW |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.05% |
| AUM | $160.9B | $1.9B |
| Dividend Yield | 4.04% | 4.29% |
| Holdings | 17,437 | 4 |
| YTD Return | -1.20% | -1.05%Best |
| 1Y Return | -0.74% | -0.73%Best |
| 3Y Return (annualized) | +3.99%Best | +3.85% |
| 5Y Return (annualized) | -0.55% | -0.35%Best |
| Volatility (annualized) | 5.6% | 5.0%Best |
| Max Drawdown | -19.6% | -17.7%Best |
| $10,000 over 5 years | $9,728 | $9,826Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Intermediate Term Bond | Long Term Mid Quality |
| Inception | Apr 3, 2007 | Sep 4, 2018 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 6, 2018 to Sep 11, 2026 (8 years).
BND vs BNDW growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8 years both funds cover.
BND vs BNDW Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard Total World Bond ETF (BNDW) is an ETF from Vanguard (US). Over the past year BND returned -0.74% while BNDW returned -0.73%. Year to date, BND is down 1.20% versus a loss of 1.05% for BNDW.
Over three years, BND compounded at +3.99% per year against +3.85% for BNDW; over five years the annualized figures are -0.55% and -0.35% respectively. Across the full 8-year window we track, BND has the edge at +0.88% annualized vs +0.75%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 5.6% compared with 5.0% for BNDW. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -17.7% for BNDW. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BND charges 0.03% per year while BNDW charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, BND currently yields 4.04% against 4.29% for BNDW.
Holdings Overlap
We hold position weights for 1,182 holdings in BND and 3 in BNDW, totalling 12.6% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 64 days apart, BND as of Jun 30, 2026 and BNDW as of Sep 2, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 1,182 positions we hold weights for in BND and 3 in BNDW, against full books of 17,437 and 4.
You are not choosing between two funds in isolation.
Whichever of BND and BNDW you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BND or BNDW?
BND has an expense ratio of 0.03% while BNDW charges 0.05%. BND is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, BND or BNDW?
Over the past year BND returned -0.74% vs -0.73% for BNDW, so BNDW leads on 1-year performance. Over the longest common window we track (8 years), BND annualized +0.88% vs +0.75% for BNDW. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or BNDW?
BND has been the more volatile fund at 5.6% annualized versus 5.0% for BNDW. Worst drawdown: BND -19.6% vs BNDW -17.7%.
Should I hold both BND and BNDW?
BND and BNDW have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, BND or BNDW?
BND yields 4.04% while BNDW yields 4.29%, so BNDW currently pays the higher dividend yield.
Is BNDW better than BND?
BND has a lower expense ratio. BND led over 3Y and the full window, BNDW over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.97. Which one suits a particular account depends on what it is for. This is information, not a recommendation.