BND vs VOE
Vanguard Total Bond Market ETF vs Vanguard Morningstar Mid-Cap Value ETF
Quick Verdict
BND has a lower expense ratio. VOE delivered stronger 1-year returns. BND offers more diversification with 17,437 holdings.
Side-by-Side Comparison
| Metric | BND | VOE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $160.9B | $23.9B | |
| Dividend Yield | 4.02% | 1.81% | |
| Holdings | 17,437 | 176 | |
| YTD Return | -0.04% | +17.24% | |
| 1Y Return | +1.81% | +22.74% | |
| 3Y Return (annualized) | +4.14% | +17.10% | |
| 5Y Return (annualized) | -0.32% | +9.86% | |
| Volatility (annualized) | 4.6% | 17.6% | |
| Max Drawdown | -19.6% | -63.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Aug 17, 2006 |
BND vs VOE Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap Value ETF (VOE) is a ETF from Vanguard (US). Over the past year BND returned +1.81% while VOE returned +22.74%. Year to date, BND is down 0.04% versus a gain of 17.24% for VOE.
Over three years, BND compounded at +4.14% per year against +17.10% for VOE; over five years the annualized figures are -0.32% and +9.86% respectively. Across the full 19-year window we track, VOE has the edge at +7.94% annualized vs +0.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOE has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -63.4% for VOE. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VOE charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, BND currently yields 4.02% against 1.81% for VOE.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, BND or VOE?
BND has an expense ratio of 0.03% while VOE charges 0.05%. BND is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, BND or VOE?
Over the past year BND returned +1.81% vs +22.74% for VOE, so VOE leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.70% vs +7.94% for VOE. Past performance does not guarantee future results.
Which is riskier, BND or VOE?
VOE has been the more volatile fund at 17.6% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VOE -63.4%.
Should I hold both BND and VOE?
BND and VOE have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VOE?
BND and VOE share 2 common holdings with a 0.0% weight overlap. Combined, they hold 1349 unique securities.
Which pays a higher dividend, BND or VOE?
BND yields 4.02% while VOE yields 1.81%, so BND currently pays the higher dividend yield.
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