BND vs RSP
Vanguard Total Bond Market ETF vs Invesco S&P 500 Equal Weight ETF
Quick Verdict
BND has a lower expense ratio. RSP delivered stronger 1-year returns. BND offers more diversification with 17,437 holdings.
Side-by-Side Comparison
| Metric | BND | RSP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.20% | |
| AUM | $160.9B | $100.9B | |
| Dividend Yield | 4.02% | 1.49% | |
| Holdings | 17,437 | 511 | |
| YTD Return | -0.41% | +13.74% | |
| 1Y Return | +1.77% | +18.21% | |
| 3Y Return (annualized) | +4.33% | +15.33% | |
| 5Y Return (annualized) | -0.37% | +8.55% | |
| Volatility (annualized) | 4.6% | 16.5% | |
| Max Drawdown | -19.6% | -60.9% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Apr 24, 2003 |
BND vs RSP Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Invesco S&P 500 Equal Weight ETF (RSP) is a ETF from Invesco (US). Over the past year BND returned +1.77% while RSP returned +18.21%. Year to date, BND is down 0.41% versus a gain of 13.74% for RSP.
Over three years, BND compounded at +4.33% per year against +15.33% for RSP; over five years the annualized figures are -0.37% and +8.55% respectively. Across the full 19-year window we track, RSP has the edge at +10.02% annualized vs +0.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RSP has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 4.6% for BND. 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 -60.9% for RSP. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while RSP charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, BND currently yields 4.02% against 1.49% for RSP.
Holdings Overlap
BND and RSP share 4 holdings out of 1641 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BND or RSP?
BND has an expense ratio of 0.03% while RSP charges 0.20%. BND is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, BND or RSP?
Over the past year BND returned +1.77% vs +18.21% for RSP, so RSP leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.68% vs +10.02% for RSP. Past performance does not guarantee future results.
Which is riskier, BND or RSP?
RSP has been the more volatile fund at 16.5% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs RSP -60.9%.
Should I hold both BND and RSP?
BND and RSP have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and RSP?
BND and RSP share 4 common holdings with a 0.0% weight overlap. Combined, they hold 1641 unique securities.
Which pays a higher dividend, BND or RSP?
BND yields 4.02% while RSP yields 1.49%, so BND currently pays the higher dividend yield.
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