BND vs VXUS
BND vs VXUS
Vanguard Total Bond Market ETF vs Vanguard Total International Stock ETF
Quick Verdict
BND has a lower expense ratio. VXUS delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $159.8B | $156.5B | |
| Dividend Yield | 3.94% | 2.60% | |
| Holdings | 17,528 | 8,747 | |
| YTD Return | -0.26% | +14.57% | |
| 1Y Return | +2.01% | +27.82% | |
| 3Y Return (annualized) | +3.97% | +19.27% | |
| 5Y Return (annualized) | -0.25% | +9.28% | |
| Volatility (annualized) | 4.6% | 15.1% | |
| Max Drawdown | -19.6% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 26, 2011 |
BND vs VXUS Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BND returned +2.01% while VXUS returned +27.82%. Year to date, BND is down 0.26% versus a gain of 14.57% for VXUS.
Over three years, BND compounded at +3.97% per year against +19.27% for VXUS; over five years the annualized figures are -0.25% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +0.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while VXUS 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 2.60% for VXUS.
Holdings Overlap
BND and VXUS share 1 holdings out of 18650 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 VXUS | Difference |
|---|---|---|---|
| LOGG3:BV | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
Which is cheaper, BND or VXUS?
BND has an expense ratio of 0.03% while VXUS 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 VXUS?
Over the past year BND returned +2.01% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), BND annualized +0.69% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, BND or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VXUS -39.9%.
Should I hold both BND and VXUS?
BND and VXUS have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VXUS?
BND and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 18650 unique securities.
Which pays a higher dividend, BND or VXUS?
BND yields 3.94% while VXUS yields 2.60%, so BND currently pays the higher dividend yield.
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