BND vs VGK
Vanguard Total Bond Market ETF vs Vanguard FTSE Europe ETF
Quick Verdict
BND has a lower expense ratio. VGK delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $159.8B | $30.0B | |
| Dividend Yield | 3.94% | 2.94% | |
| Holdings | 17,528 | 1,251 | |
| YTD Return | -0.61% | +11.11% | |
| 1Y Return | +1.81% | +23.13% | |
| 3Y Return (annualized) | +4.14% | +18.04% | |
| 5Y Return (annualized) | -0.29% | +9.43% | |
| Volatility (annualized) | 4.6% | 18.5% | |
| Max Drawdown | -19.6% | -67.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 4, 2005 |
BND vs VGK Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year BND returned +1.81% while VGK returned +23.13%. Year to date, BND is down 0.61% versus a gain of 11.11% for VGK.
Over three years, BND compounded at +4.14% per year against +18.04% for VGK; over five years the annualized figures are -0.29% and +9.43% respectively. Across the full 19-year window we track, VGK has the edge at +3.69% annualized vs +0.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -67.3% for VGK. 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VGK charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 2.94% for VGK.
Holdings Overlap
BND and VGK share 0 holdings out of 11748 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 VGK?
BND has an expense ratio of 0.03% while VGK charges 0.06%. BND is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, BND or VGK?
Over the past year BND returned +1.81% vs +23.13% for VGK, so VGK leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.67% vs +3.69% for VGK. Past performance does not guarantee future results.
Which is riskier, BND or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VGK -67.3%.
Should I hold both BND and VGK?
BND and VGK have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VGK?
BND and VGK share 0 common holdings with a 0.0% weight overlap. Combined, they hold 11748 unique securities.
Which pays a higher dividend, BND or VGK?
BND yields 3.94% while VGK yields 2.94%, so BND currently pays the higher dividend yield.
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