BNDX vs VDIGX
Vanguard Total International Bond ETF vs Vanguard Dividend Growth Fund Investor Class
Which is better, BNDX or VDIGX?
Long Term Mid Quality against Large Cap Blend.
BNDX has a lower expense ratio.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BNDX | VDIGX |
|---|---|---|
| Expense Ratio | 0.07%Best | 0.20% |
| AUM | $82.7B | $35.5B |
| Dividend Yield | 4.58% | 23.10% |
| Holdings | 6,859 | 62 |
| YTD Price Return | -2.28% | -3.99% |
| 1Y Price Return | -4.41% | -14.10% |
| 3Y Price Return (annualized) | -0.66% | -3.79% |
| 5Y Price Return (annualized) | -3.86% | -3.37% |
| Volatility (annualized) | 5.6%Best | 16.0% |
| Max Drawdown | -18.5%Best | -32.6% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Blend |
| Inception | May 31, 2013 | May 15, 1992 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. BNDX currently yields 4.58% and VDIGX 23.10%.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).
BNDX vs VDIGX Performance
Vanguard Total International Bond ETF (BNDX) is an ETF from Vanguard (US) and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year BNDX's price moved -4.41% and VDIGX's -14.10%, before the income each one paid out.
Over three years, BNDX compounded at -0.66% per year against -3.79% for VDIGX; over five years the annualized figures are -3.86% and -3.37% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 5.6% for BNDX. 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 -18.5% for BNDX and -32.6% for VDIGX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BNDX charges 0.07% per year while VDIGX charges 0.20%. On a $10,000 position that is $7 vs $20 annually, a gap of $13 per year that compounds over a long holding period. On income, BNDX currently yields 4.58% against 23.10% for VDIGX.
Structure and taxes
VDIGX is a mutual fund and BNDX is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 943 holdings in BNDX and 51 in VDIGX, totalling 11.3% and 99.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 943 positions we hold weights for in BNDX and 51 in VDIGX, against full books of 6,859 and 62.
You are not choosing between two funds in isolation.
Whichever of BNDX and VDIGX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BNDX or VDIGX?
BNDX has an expense ratio of 0.07% while VDIGX charges 0.20%. BNDX is the cheaper option, by $13 a year on a $10,000 investment.
Which is riskier, BNDX or VDIGX?
VDIGX has been the more volatile fund at 16.0% annualized versus 5.6% for BNDX. Worst drawdown: BNDX -18.5% vs VDIGX -32.6%.
Should I hold both BNDX and VDIGX?
BNDX and VDIGX have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BNDX or VDIGX?
BNDX yields 4.58% while VDIGX yields 23.10%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or BNDX in a taxable account?
BNDX is an ETF and VDIGX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VDIGX better than BNDX?
BNDX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.