BNDX vs VTBNX
Vanguard Total International Bond ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. BNDX delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | BNDX | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.02% | |
| AUM | $82.7B | $207.3B | |
| Dividend Yield | 4.53% | 3.79% | |
| Holdings | 6,859 | 15,623 | |
| YTD Return | +0.24% | -2.49% | |
| 1Y Return | +1.27% | -1.68% | |
| 3Y Return (annualized) | +4.21% | +0.72% | |
| 5Y Return (annualized) | -0.10% | -3.58% | |
| Volatility (annualized) | 4.1% | 6.3% | |
| Max Drawdown | -17.2% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | May 31, 2013 | Feb 17, 2009 |
BNDX vs VTBNX Performance
Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year BNDX returned +1.27% while VTBNX returned -1.68%. Year to date, BNDX is up 0.24% versus a loss of 2.49% for VTBNX.
Over three years, BNDX compounded at +4.21% per year against +0.72% for VTBNX; over five years the annualized figures are -0.10% and -3.58% respectively. Across the full 5-year window we track, BNDX has the edge at +1.07% annualized vs -3.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% compared with 4.1% 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 -17.2% for BNDX and -21.5% for VTBNX. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BNDX charges 0.07% per year while VTBNX charges 0.02%. On a $10,000 position that is $7 vs $2 annually, a gap of $5 per year that compounds over a long holding period. On income, BNDX currently yields 4.53% against 3.79% for VTBNX.
Holdings Overlap
BNDX and VTBNX share 0 holdings out of 12730 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 VTBNX?
BNDX has an expense ratio of 0.07% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, BNDX or VTBNX?
Over the past year BNDX returned +1.27% vs -1.68% for VTBNX, so BNDX leads on 1-year performance. Over the longest common window we track (5 years), BNDX annualized +1.07% vs -3.58% for VTBNX. Past performance does not guarantee future results.
Which is riskier, BNDX or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 4.1% for BNDX. Worst drawdown: BNDX -17.2% vs VTBNX -21.5%.
Should I hold both BNDX and VTBNX?
BNDX and VTBNX have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDX and VTBNX?
BNDX and VTBNX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 12730 unique securities.
Which pays a higher dividend, BNDX or VTBNX?
BNDX yields 4.53% while VTBNX yields 3.79%, so BNDX currently pays the higher dividend yield.
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