BND vs VWO
Vanguard Total Bond Market ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
BND has a lower expense ratio. VWO delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $159.8B | $122.3B | |
| Dividend Yield | 3.94% | 2.37% | |
| Holdings | 17,528 | 6,334 | |
| YTD Return | -0.53% | +9.58% | |
| 1Y Return | +1.89% | +21.85% | |
| 3Y Return (annualized) | +4.22% | +17.49% | |
| 5Y Return (annualized) | -0.29% | +6.27% | |
| Volatility (annualized) | 4.6% | 20.1% | |
| Max Drawdown | -19.6% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Mar 4, 2005 |
BND vs VWO Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year BND returned +1.89% while VWO returned +21.85%. Year to date, BND is down 0.53% versus a gain of 9.58% for VWO.
Over three years, BND compounded at +4.22% per year against +17.49% for VWO; over five years the annualized figures are -0.29% and +6.27% respectively. Across the full 19-year window we track, VWO has the edge at +4.96% annualized vs +0.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VWO 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 2.37% for VWO.
Holdings Overlap
BND and VWO share 1 holdings out of 14771 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 VWO | Difference |
|---|---|---|---|
| LOGG3:BV | 0.00% | 0.01% | 0.01% |
Frequently Asked Questions
Which is cheaper, BND or VWO?
BND has an expense ratio of 0.03% while VWO 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 VWO?
Over the past year BND returned +1.89% vs +21.85% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.67% vs +4.96% for VWO. Past performance does not guarantee future results.
Which is riskier, BND or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VWO -68.3%.
Should I hold both BND and VWO?
BND and VWO have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VWO?
BND and VWO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 14771 unique securities.
Which pays a higher dividend, BND or VWO?
BND yields 3.94% while VWO yields 2.37%, so BND currently pays the higher dividend yield.
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