BND vs VEA
Vanguard Total Bond Market ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $159.8B | $230.9B | |
| Dividend Yield | 3.94% | 2.57% | |
| Holdings | 17,528 | 3,918 | |
| YTD Return | -0.61% | +15.52% | |
| 1Y Return | +1.81% | +29.08% | |
| 3Y Return (annualized) | +4.14% | +19.97% | |
| 5Y Return (annualized) | -0.29% | +10.09% | |
| Volatility (annualized) | 4.6% | 17.8% | |
| Max Drawdown | -19.6% | -62.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jul 20, 2007 |
BND vs VEA Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year BND returned +1.81% while VEA returned +29.08%. Year to date, BND is down 0.61% versus a gain of 15.52% for VEA.
Over three years, BND compounded at +4.14% per year against +19.97% for VEA; over five years the annualized figures are -0.29% and +10.09% respectively. Across the full 19-year window we track, VEA has the edge at +3.11% annualized vs +0.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -62.9% for VEA. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VEA charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 3.94% against 2.57% for VEA.
Holdings Overlap
BND and VEA share 0 holdings out of 13798 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 VEA?
BND has an expense ratio of 0.03% while VEA charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BND or VEA?
Over the past year BND returned +1.81% vs +29.08% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.67% vs +3.11% for VEA. Past performance does not guarantee future results.
Which is riskier, BND or VEA?
VEA has been the more volatile fund at 17.8% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VEA -62.9%.
Should I hold both BND and VEA?
BND and VEA have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VEA?
BND and VEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 13798 unique securities.
Which pays a higher dividend, BND or VEA?
BND yields 3.94% while VEA yields 2.57%, so BND currently pays the higher dividend yield.
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