BND vs VT

Quick Verdict

BND has a lower expense ratio. VT delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.

Lower Fees: BNDHigher Returns: VTMore Diversified: BND

Side-by-Side Comparison

MetricBNDVTWinner
Expense Ratio0.03%0.06%
AUM$159.8B$77.6B
Dividend Yield3.94%1.61%
Holdings17,52810,133
YTD Return-0.26%+14.19%
1Y Return+2.01%+25.25%
3Y Return (annualized)+3.97%+20.36%
5Y Return (annualized)-0.25%+11.17%
Volatility (annualized)4.6%16.6%
Max Drawdown-19.6%-50.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2007Jun 24, 2008

BND vs VT Performance

Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year BND returned +2.01% while VT returned +25.25%. Year to date, BND is down 0.26% versus a gain of 14.19% for VT.

Over three years, BND compounded at +3.97% per year against +20.36% for VT; over five years the annualized figures are -0.25% and +11.17% respectively. Across the full 18-year window we track, VT has the edge at +7.37% annualized vs +0.69%. 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 4.6% 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 -50.6% for VT. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.

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 3.94% against 1.61% for VT.

Holdings Overlap

0.0%overlap

BND and VT share 9 holdings out of 19708 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BNDWeight in VTDifference
LRCX0.00%0.29%0.29%
DUK0.00%0.09%0.09%
AON0.00%0.06%0.06%
HUBBProProPro
KDPProProPro
CNPProProPro
SFProProPro
NNNProProPro
LOGG3:BVProProPro
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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. On a $10,000 investment, that is $3 per year of difference.

Which performed better, BND or VT?

Over the past year BND returned +2.01% vs +25.25% for VT, so VT leads on 1-year performance. Over the longest common window we track (18 years), BND annualized +0.69% vs +7.37% for VT. Past performance does not guarantee future results.

Which is riskier, BND or VT?

VT has been the more volatile fund at 16.6% annualized versus 4.6% 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 combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BND and VT?

BND and VT share 9 common holdings with a 0.0% weight overlap. Combined, they hold 19708 unique securities.

Which pays a higher dividend, BND or VT?

BND yields 3.94% while VT yields 1.61%, so BND currently pays the higher dividend yield.

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