BND vs VO
Vanguard Total Bond Market ETF vs Vanguard Mid-Cap ETF
Quick Verdict
VO delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $159.8B | $105.9B | |
| Dividend Yield | 3.94% | 1.53% | |
| Holdings | 17,528 | 293 | |
| YTD Return | -0.61% | +13.87% | |
| 1Y Return | +1.81% | +18.87% | |
| 3Y Return (annualized) | +4.14% | +16.27% | |
| 5Y Return (annualized) | -0.29% | +8.03% | |
| Volatility (annualized) | 4.6% | 16.9% | |
| Max Drawdown | -19.6% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 26, 2004 |
BND vs VO Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year BND returned +1.81% while VO returned +18.87%. Year to date, BND is down 0.61% versus a gain of 13.87% for VO.
Over three years, BND compounded at +4.14% per year against +16.27% for VO; over five years the annualized figures are -0.29% and +8.03% respectively. Across the full 19-year window we track, VO has the edge at +9.21% annualized vs +0.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -60.3% for VO. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 3.94% against 1.53% for VO.
Holdings Overlap
BND and VO share 6 holdings out of 11063 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BND | Weight in VO | Difference |
|---|---|---|---|
| KDP | 0.00% | 0.41% | 0.41% |
| NSC 3.942 11/01/47 | 0.00% | 0.34% | 0.34% |
| AON | 0.00% | 0.33% | 0.33% |
| CNP | Pro | Pro | Pro |
| HUBB | Pro | Pro | Pro |
| LEN 4.75 11/29/27 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BND or VO?
BND has an expense ratio of 0.03% while VO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BND or VO?
Over the past year BND returned +1.81% vs +18.87% for VO, so VO leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.67% vs +9.21% for VO. Past performance does not guarantee future results.
Which is riskier, BND or VO?
VO has been the more volatile fund at 16.9% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VO -60.3%.
Should I hold both BND and VO?
BND and VO have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VO?
BND and VO share 6 common holdings with a 0.0% weight overlap. Combined, they hold 11063 unique securities.
Which pays a higher dividend, BND or VO?
BND yields 3.94% while VO yields 1.53%, so BND currently pays the higher dividend yield.
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