BND vs VTCIX
Vanguard Total Bond Market ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX delivered stronger 1-year returns. BND offers more diversification with 17,437 holdings.
Side-by-Side Comparison
| Metric | BND | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $160.9B | $5.2B | |
| Dividend Yield | 4.02% | 0.93% | |
| Holdings | 17,437 | 836 | |
| YTD Return | -0.35% | +11.25% | |
| 1Y Return | +1.83% | +18.67% | |
| 3Y Return (annualized) | +4.35% | +19.07% | |
| 5Y Return (annualized) | -0.39% | +10.49% | |
| Volatility (annualized) | 4.6% | 15.9% | |
| Max Drawdown | -19.6% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Feb 24, 1999 |
BND vs VTCIX Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year BND returned +1.83% while VTCIX returned +18.67%. Year to date, BND is down 0.35% versus a gain of 11.25% for VTCIX.
Over three years, BND compounded at +4.35% per year against +19.07% for VTCIX; over five years the annualized figures are -0.39% and +10.49% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.49% annualized vs +0.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -26.0% for VTCIX. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 4.02% against 0.93% for VTCIX.
Holdings Overlap
BND and VTCIX share 4 holdings out of 2063 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BND or VTCIX?
BND has an expense ratio of 0.03% while VTCIX charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BND or VTCIX?
Over the past year BND returned +1.83% vs +18.67% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), BND annualized +0.68% vs +10.49% for VTCIX. Past performance does not guarantee future results.
Which is riskier, BND or VTCIX?
VTCIX has been the more volatile fund at 15.9% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VTCIX -26.0%.
Should I hold both BND and VTCIX?
BND and VTCIX have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VTCIX?
BND and VTCIX share 4 common holdings with a 0.0% weight overlap. Combined, they hold 2063 unique securities.
Which pays a higher dividend, BND or VTCIX?
BND yields 4.02% while VTCIX yields 0.93%, so BND currently pays the higher dividend yield.
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