BND vs VT
Vanguard Total Bond Market ETF vs Vanguard Total World Stock ETF
Which is better, BND or VT?
Intermediate Term Bond against Large Cap Blend.
BND has a lower expense ratio. VT 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 | VT |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $160.9B | $97.9B |
| Dividend Yield | 4.04% | 1.55% |
| Holdings | 17,437 | 10,133 |
| YTD Return | -0.85% | +12.72%Best |
| 1Y Return | -0.30% | +18.16%Best |
| 3Y Return (annualized) | +4.15% | +20.32%Best |
| 5Y Return (annualized) | -0.44% | +10.87%Best |
| Volatility (annualized) | 4.7%Best | 16.6% |
| Max Drawdown | -19.6%Best | -50.6% |
| $10,000 over 5 years | $9,782 | $16,752Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Large Cap Blend |
| Inception | Apr 3, 2007 | Jun 24, 2008 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 26, 2008 to Sep 17, 2026 (18.2 years).
BND vs VT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
BND vs VT Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is an ETF from Vanguard (US). Over the past year BND returned -0.30% while VT returned +18.16%. Year to date, BND is down 0.85% versus a gain of 12.72% for VT.
Over three years, BND compounded at +4.15% per year against +20.32% for VT; over five years the annualized figures are -0.44% and +10.87% respectively. Across the full 18-year window we track, VT has the edge at +7.25% annualized vs +0.66%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VT has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 4.7% 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 -50.6% for VT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.32. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BND charges 0.03% per year while VT 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 4.04% against 1.55% for VT.
Holdings Overlap
We hold position weights for 16 holdings in BND and 9,272 in VT, totalling 1.5% and 90.1% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 3 positions appear in both.
3 positions in common, counted across the 16 positions we hold weights for in BND and 9,272 in VT, against full books of 17,437 and 10,133.
You are not choosing between two funds in isolation.
Whichever of BND and VT 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 VT?
BND has an expense ratio of 0.03% while VT charges 0.06%. BND is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, BND or VT?
Over the past year BND returned -0.30% vs +18.16% for VT, so VT leads on 1-year performance. Over the longest common window we track (18 years), BND annualized +0.66% vs +7.25% for VT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VT?
VT has been the more volatile fund at 16.6% annualized versus 4.7% for BND. Worst drawdown: BND -19.6% vs VT -50.6%.
Should I hold both BND and VT?
BND and VT have a monthly-return correlation of 0.32, 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 VT?
BND yields 4.04% while VT yields 1.55%, so BND currently pays the higher dividend yield.
Is VT better than BND?
BND has a lower expense ratio. VT 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.