BND vs VXF

Quick Verdict

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

Lower Fees: BNDHigher Returns: VXFMore Diversified: BND

Side-by-Side Comparison

MetricBNDVXFWinner
Expense Ratio0.03%0.05%
AUM$159.8B$31.6B
Dividend Yield3.94%1.21%
Holdings17,5283,376
YTD Return-0.53%+17.47%
1Y Return+1.89%+27.53%
3Y Return (annualized)+4.22%+19.37%
5Y Return (annualized)-0.29%+6.93%
Volatility (annualized)4.6%18.7%
Max Drawdown-19.6%-59.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2007Dec 27, 2001

BND vs VXF Performance

Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year BND returned +1.89% while VXF returned +27.53%. Year to date, BND is down 0.53% versus a gain of 17.47% for VXF.

Over three years, BND compounded at +4.22% per year against +19.37% for VXF; over five years the annualized figures are -0.29% and +6.93% respectively. Across the full 19-year window we track, VXF has the edge at +9.08% annualized vs +0.67%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 VXF 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 3.94% against 1.21% for VXF.

Holdings Overlap

0.0%overlap

BND and VXF share 2 holdings out of 13250 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 VXFDifference
SF0.00%0.14%0.14%
NNN0.00%0.11%0.11%

Frequently Asked Questions

Which is cheaper, BND or VXF?

BND has an expense ratio of 0.03% while VXF 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 VXF?

Over the past year BND returned +1.89% vs +27.53% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.67% vs +9.08% for VXF. Past performance does not guarantee future results.

Which is riskier, BND or VXF?

VXF has been the more volatile fund at 18.7% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VXF -59.4%.

Should I hold both BND and VXF?

BND and VXF 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 VXF?

BND and VXF share 2 common holdings with a 0.0% weight overlap. Combined, they hold 13250 unique securities.

Which pays a higher dividend, BND or VXF?

BND yields 3.94% while VXF yields 1.21%, so BND currently pays the higher dividend yield.

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