BND vs VMLUX
Vanguard Total Bond Market ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
BND has a lower expense ratio. BND delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $159.8B | $34.1B | |
| Dividend Yield | 3.94% | 2.89% | |
| Holdings | 17,528 | 7,110 | |
| YTD Return | -0.26% | -0.64% | |
| 1Y Return | +2.01% | -0.36% | |
| 3Y Return (annualized) | +3.97% | +0.81% | |
| 5Y Return (annualized) | -0.25% | -0.58% | |
| Volatility (annualized) | 4.6% | 2.8% | |
| Max Drawdown | -19.6% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Apr 3, 2007 | Feb 12, 2001 |
BND vs VMLUX Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year BND returned +2.01% while VMLUX returned -0.36%. Year to date, BND is down 0.26% versus a loss of 0.64% for VMLUX.
Over three years, BND compounded at +3.97% per year against +0.81% for VMLUX; over five years the annualized figures are -0.25% and -0.58% respectively. Across the full 5-year window we track, BND has the edge at +0.69% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 4.6% compared with 2.8% for VMLUX. 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 -8.5% for VMLUX. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BND charges 0.03% per year while VMLUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 2.89% for VMLUX.
Holdings Overlap
BND and VMLUX share 0 holdings out of 11705 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 VMLUX?
BND has an expense ratio of 0.03% while VMLUX charges 0.09%. BND is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, BND or VMLUX?
Over the past year BND returned +2.01% vs -0.36% for VMLUX, so BND leads on 1-year performance. Over the longest common window we track (5 years), BND annualized +0.69% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, BND or VMLUX?
BND has been the more volatile fund at 4.6% annualized versus 2.8% for VMLUX. Worst drawdown: BND -19.6% vs VMLUX -8.5%.
Should I hold both BND and VMLUX?
BND and VMLUX have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BND and VMLUX?
BND and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 11705 unique securities.
Which pays a higher dividend, BND or VMLUX?
BND yields 3.94% while VMLUX yields 2.89%, so BND currently pays the higher dividend yield.
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