BND vs VNQ
Vanguard Total Bond Market ETF vs Vanguard Real Estate ETF
Which is better, BND or VNQ?
Intermediate Term Bond against Mid Cap Blend.
BND has a lower expense ratio. VNQ 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 | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $160.9B | $39.3B |
| Dividend Yield | 4.04% | 3.49% |
| Holdings | 17,437 | 144 |
| YTD Return | -1.77% | +5.33%Best |
| 1Y Return | -1.02% | +3.06%Best |
| 3Y Return (annualized) | +4.28% | +10.02%Best |
| 5Y Return (annualized) | -0.59% | +0.78%Best |
| Volatility (annualized) | 4.6%Best | 22.1% |
| Max Drawdown | -19.6%Best | -74.0% |
| $10,000 over 5 years | $9,708 | $10,396Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Mid Cap Blend |
| Inception | Apr 3, 2007 | Sep 23, 2004 |
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 23, 2026 (19.5 years).
BND vs VNQ 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 VNQ Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year BND returned -1.02% while VNQ returned +3.06%. Year to date, BND is down 1.77% versus a gain of 5.33% for VNQ.
Over three years, BND compounded at +4.28% per year against +10.02% for VNQ; over five years the annualized figures are -0.59% and +0.78% respectively. Across the full 20-year window we track, VNQ has the edge at +1.72% annualized vs +0.61%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 22.1% 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 -74.0% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.41. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BND charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, BND currently yields 4.04% against 3.49% for VNQ.
Holdings Overlap
At least 0.3% of VNQ's money is in holdings BND also owns.
Stated as a floor: for BND, our book for it covers 1.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 16 positions we hold weights for in BND and 139 in VNQ, against full books of 17,437 and 144.
Top Shared Holdings
| Stock | Weight in BND | Weight in VNQ | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 1.36% | 0.33% | 1.03% |
You are not choosing between two funds in isolation.
Whichever of BND and VNQ 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 VNQ?
BND has an expense ratio of 0.03% while VNQ charges 0.13%. BND is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, BND or VNQ?
Over the past year BND returned -1.02% vs +3.06% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (20 years), BND annualized +0.61% vs +1.72% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VNQ?
VNQ has been the more volatile fund at 22.1% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VNQ -74.0%.
Should I hold both BND and VNQ?
BND and VNQ have a monthly-return correlation of 0.41, 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 VNQ?
BND yields 4.04% while VNQ yields 3.49%, so BND currently pays the higher dividend yield.
Is VNQ better than BND?
BND has a lower expense ratio. VNQ 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.