BND vs FXNAX
Vanguard Total Bond Market ETF vs Fidelity US Bond Index Fund
Which is better, BND or FXNAX?
Intermediate Term Bond against Long Term High Quality.
The two have moved almost in lockstep, correlation 0.99.
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 | FXNAX |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $160.9B | $39.5B |
| Dividend Yield | 4.04% | 3.49% |
| Holdings | 17,437 | 10,442 |
| YTD Price Return | -3.96% | -3.98% |
| 1Y Price Return | -4.83% | -4.61% |
| 3Y Price Return (annualized) | +0.12% | +0.37% |
| 5Y Price Return (annualized) | -3.81% | -3.62% |
| Volatility (annualized) | 6.3% | 6.2%Best |
| Max Drawdown | -21.4%Tie | -21.4%Tie |
| Fund Family | Vanguard (US) | Fidelity Investments (US) |
| Category | Fixed Income | Fixed Income |
| Style | Intermediate Term Bond | Long Term High Quality |
| Inception | Apr 3, 2007 | May 4, 2011 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. BND currently yields 4.04% and FXNAX 3.49%.
Volatility and max drawdown are measured over the window both funds cover: Sep 17, 2021 to Sep 15, 2026 (5 years).
BND vs FXNAX Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Fidelity US Bond Index Fund (FXNAX) is a mutual fund from Fidelity Investments (US). Over the past year BND's price moved -4.83% and FXNAX's -4.61%, before the income each one paid out.
Over three years, BND compounded at +0.12% per year against +0.37% for FXNAX; over five years the annualized figures are -3.81% and -3.62% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 6.3% compared with 6.2% for FXNAX. 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 -21.4% for BND and -21.4% for FXNAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. 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 FXNAX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 4.04% against 3.49% for FXNAX.
Structure and taxes
FXNAX is a mutual fund and BND is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 16 holdings in BND and 5,235 in FXNAX, totalling 1.5% and 79.0% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 2 positions appear in both.
The two holdings books were reported 61 days apart, BND as of Jul 31, 2026 and FXNAX as of May 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
2 positions in common, counted across the 16 positions we hold weights for in BND and 5,235 in FXNAX, against full books of 17,437 and 10,442.
Top Shared Holdings
| Stock | Weight in BND | Weight in FXNAX | Difference |
|---|---|---|---|
| ABIBB 5.8 01/23/59Anheuser-busch Inbev Worldwide Inc | 0.01% | 0.02% | 0.01% |
| EPD 3.3 02/15/53Enterprise Produ 3.3% 02/15/53 | 0.00% | 0.00% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of BND and FXNAX 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 FXNAX?
BND has an expense ratio of 0.03% while FXNAX charges 0.03%. At the precision these are quoted to, they cost the same.
Which is riskier, BND or FXNAX?
BND has been the more volatile fund at 6.3% annualized versus 6.2% for FXNAX. Worst drawdown: BND -21.4% vs FXNAX -21.4%.
Should I hold both BND and FXNAX?
BND and FXNAX have a monthly-return correlation of 0.99, 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 FXNAX?
BND yields 4.04% while FXNAX yields 3.49%, so BND currently pays the higher dividend yield.
Is it better to hold FXNAX or BND in a taxable account?
BND is an ETF and FXNAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is FXNAX better than BND?
The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.