BNDX vs VGSH
Vanguard Total International Bond ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. VGSH delivered stronger 1-year returns. BNDX offers more diversification with 1269 holdings.
Side-by-Side Comparison
| Metric | BNDX | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $83.0B | $29.4B | |
| Dividend Yield | 4.45% | 3.87% | |
| Holdings | 13,626 | 94 | |
| YTD Return | +0.35% | +0.65% | |
| 1Y Return | +1.09% | +2.56% | |
| 3Y Return (annualized) | +4.19% | +4.25% | |
| 5Y Return (annualized) | -0.06% | +1.87% | |
| Volatility (annualized) | 4.1% | 1.4% | |
| Max Drawdown | -17.2% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | May 31, 2013 | Nov 19, 2009 |
BNDX vs VGSH Performance
Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year BNDX returned +1.09% while VGSH returned +2.56%. Year to date, BNDX is up 0.35% versus a gain of 0.65% for VGSH.
Over three years, BNDX compounded at +4.19% per year against +4.25% for VGSH; over five years the annualized figures are -0.06% and +1.87% respectively. Across the full 13-year window we track, BNDX has the edge at +1.08% annualized vs +0.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BNDX has been the more volatile fund, with annualized monthly volatility of 4.1% compared with 1.4% for VGSH. 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 -17.2% for BNDX and -6.7% for VGSH. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDX charges 0.07% per year while VGSH charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, BNDX currently yields 4.45% against 3.87% for VGSH.
Holdings Overlap
BNDX and VGSH share 0 holdings out of 1345 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, BNDX or VGSH?
BNDX has an expense ratio of 0.07% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, BNDX or VGSH?
Over the past year BNDX returned +1.09% vs +2.56% for VGSH, so VGSH leads on 1-year performance. Over the longest common window we track (13 years), BNDX annualized +1.08% vs +0.71% for VGSH. Past performance does not guarantee future results.
Which is riskier, BNDX or VGSH?
BNDX has been the more volatile fund at 4.1% annualized versus 1.4% for VGSH. Worst drawdown: BNDX -17.2% vs VGSH -6.7%.
Should I hold both BNDX and VGSH?
BNDX and VGSH have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDX and VGSH?
BNDX and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1345 unique securities.
Which pays a higher dividend, BNDX or VGSH?
BNDX yields 4.45% while VGSH yields 3.87%, so BNDX currently pays the higher dividend yield.
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