BND vs VEU
Vanguard Total Bond Market ETF vs Vanguard FTSE All World Ex US ETF
Which is better, BND or VEU?
Intermediate Term Bond against Large Cap Blend.
BND has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window.
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 | VEU |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $160.9B | $68.4B |
| Dividend Yield | 4.04% | 2.48% |
| Holdings | 17,437 | 3,928 |
| YTD Return | -0.94% | +15.10%Best |
| 1Y Return | +0.02% | +22.59%Best |
| 3Y Return (annualized) | +4.58% | +21.15%Best |
| 5Y Return (annualized) | -0.53% | +9.75%Best |
| Volatility (annualized) | 4.6%Best | 17.7% |
| Max Drawdown | -19.6%Best | -62.8% |
| $10,000 over 5 years | $9,738 | $15,923Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Large Cap Blend |
| Inception | Apr 3, 2007 | Mar 2, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Sep 22, 2026 (19.5 years).
BND vs VEU 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 19.5 years both funds cover.
BND vs VEU Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US). Over the past year BND returned +0.02% while VEU returned +22.59%. Year to date, BND is down 0.94% versus a gain of 15.10% for VEU.
Over three years, BND compounded at +4.58% per year against +21.15% for VEU; over five years the annualized figures are -0.53% and +9.75% respectively. Across the full 20-year window we track, VEU has the edge at +3.22% annualized vs +0.65%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for VEU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.31. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BND charges 0.03% per year while VEU charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, BND currently yields 4.04% against 2.48% for VEU.
Holdings Overlap
We hold position weights for 16 holdings in BND and 3,645 in VEU, totalling 1.5% and 94.2% 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, 1 positions appear in both.
1 positions in common, counted across the 16 positions we hold weights for in BND and 3,645 in VEU, against full books of 17,437 and 3,928.
Top Shared Holdings
| Stock | Weight in BND | Weight in VEU | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 1.36% | 0.57% | 0.79% |
You are not choosing between two funds in isolation.
Whichever of BND and VEU 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 VEU?
BND has an expense ratio of 0.03% while VEU charges 0.04%. BND is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, BND or VEU?
Over the past year BND returned +0.02% vs +22.59% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (20 years), BND annualized +0.65% vs +3.22% for VEU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VEU?
VEU has been the more volatile fund at 17.7% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VEU -62.8%.
Should I hold both BND and VEU?
BND and VEU have a monthly-return correlation of 0.31, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BND or VEU?
BND yields 4.04% while VEU yields 2.48%, so BND currently pays the higher dividend yield.
Is VEU better than BND?
BND has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.