BND vs VGHAX

Quick Verdict

BND has a lower expense ratio. VGHAX delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.

Lower Fees: BNDHigher Returns: VGHAXMore Diversified: BND

Side-by-Side Comparison

MetricBNDVGHAXWinner
Expense Ratio0.03%0.32%
AUM$159.8B$31.8B
Dividend Yield3.94%1.06%
Holdings17,528109
YTD Return-0.43%+2.40%
1Y Return+1.98%+25.63%
3Y Return (annualized)+4.25%-0.60%
5Y Return (annualized)-0.27%-2.58%
Volatility (annualized)4.6%15.3%
Max Drawdown-19.6%-33.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2007Nov 12, 2001

BND vs VGHAX Performance

Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year BND returned +1.98% while VGHAX returned +25.63%. Year to date, BND is down 0.43% versus a gain of 2.40% for VGHAX.

Over three years, BND compounded at +4.25% per year against -0.60% for VGHAX; over five years the annualized figures are -0.27% and -2.58% respectively. Across the full 5-year window we track, BND has the edge at +0.68% annualized vs -2.58%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGHAX has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -33.6% for VGHAX. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BND charges 0.03% per year while VGHAX charges 0.32%. On a $10,000 position that is $3 vs $32 annually, a gap of $29 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 1.06% for VGHAX.

Holdings Overlap

0.0%overlap

BND and VGHAX share 0 holdings out of 10876 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 VGHAX?

BND has an expense ratio of 0.03% while VGHAX charges 0.32%. BND is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, BND or VGHAX?

Over the past year BND returned +1.98% vs +25.63% for VGHAX, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), BND annualized +0.68% vs -2.58% for VGHAX. Past performance does not guarantee future results.

Which is riskier, BND or VGHAX?

VGHAX has been the more volatile fund at 15.3% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VGHAX -33.6%.

Should I hold both BND and VGHAX?

BND and VGHAX have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BND and VGHAX?

BND and VGHAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 10876 unique securities.

Which pays a higher dividend, BND or VGHAX?

BND yields 3.94% while VGHAX yields 1.06%, so BND currently pays the higher dividend yield.

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