BND vs VBR
Vanguard Total Bond Market ETF vs Vanguard Small Cap Value ETF
Quick Verdict
BND has a lower expense ratio. VBR delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VBR | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $159.8B | $36.9B | |
| Dividend Yield | 3.94% | 2.23% | |
| Holdings | 17,528 | 853 | |
| YTD Return | -0.26% | +17.75% | |
| 1Y Return | +2.01% | +28.74% | |
| 3Y Return (annualized) | +3.97% | +15.64% | |
| 5Y Return (annualized) | -0.25% | +10.13% | |
| Volatility (annualized) | 4.6% | 19.0% | |
| Max Drawdown | -19.6% | -64.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 26, 2004 |
BND vs VBR Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US). Over the past year BND returned +2.01% while VBR returned +28.74%. Year to date, BND is down 0.26% versus a gain of 17.75% for VBR.
Over three years, BND compounded at +3.97% per year against +15.64% for VBR; over five years the annualized figures are -0.25% and +10.13% respectively. Across the full 19-year window we track, VBR has the edge at +8.03% annualized vs +0.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR. 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VBR 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 3.94% against 2.23% for VBR.
Holdings Overlap
BND and VBR share 3 holdings out of 11596 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 VBR?
BND has an expense ratio of 0.03% while VBR charges 0.05%. BND is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, BND or VBR?
Over the past year BND returned +2.01% vs +28.74% for VBR, so VBR leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.69% vs +8.03% for VBR. Past performance does not guarantee future results.
Which is riskier, BND or VBR?
VBR has been the more volatile fund at 19.0% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VBR -64.0%.
Should I hold both BND and VBR?
BND and VBR have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VBR?
BND and VBR share 3 common holdings with a 0.0% weight overlap. Combined, they hold 11596 unique securities.
Which pays a higher dividend, BND or VBR?
BND yields 3.94% while VBR yields 2.23%, so BND currently pays the higher dividend yield.
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