BNDX vs VTCIX
Vanguard Total International Bond ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VTCIX delivered stronger 1-year returns. BNDX offers more diversification with 6,859 holdings.
Side-by-Side Comparison
| Metric | BNDX | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $82.7B | $5.2B | |
| Dividend Yield | 4.53% | 0.93% | |
| Holdings | 6,859 | 836 | |
| YTD Return | +0.24% | +11.54% | |
| 1Y Return | +1.27% | +19.63% | |
| 3Y Return (annualized) | +4.21% | +20.07% | |
| 5Y Return (annualized) | -0.10% | +10.90% | |
| Volatility (annualized) | 4.1% | 16.1% | |
| Max Drawdown | -17.2% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 31, 2013 | Feb 24, 1999 |
BNDX vs VTCIX Performance
Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year BNDX returned +1.27% while VTCIX returned +19.63%. Year to date, BNDX is up 0.24% versus a gain of 11.54% for VTCIX.
Over three years, BNDX compounded at +4.21% per year against +20.07% for VTCIX; over five years the annualized figures are -0.10% and +10.90% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.90% annualized vs +1.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -26.0% for VTCIX. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BNDX charges 0.07% per year while VTCIX 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 4.53% against 0.93% for VTCIX.
Holdings Overlap
BNDX and VTCIX share 1 holdings out of 826 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BNDX | Weight in VTCIX | Difference |
|---|---|---|---|
| MKL | 1.36% | 0.06% | 1.30% |
Frequently Asked Questions
Which is cheaper, BNDX or VTCIX?
BNDX has an expense ratio of 0.07% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, BNDX or VTCIX?
Over the past year BNDX returned +1.27% vs +19.63% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), BNDX annualized +1.07% vs +10.90% for VTCIX. Past performance does not guarantee future results.
Which is riskier, BNDX or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 4.1% for BNDX. Worst drawdown: BNDX -17.2% vs VTCIX -26.0%.
Should I hold both BNDX and VTCIX?
BNDX and VTCIX have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDX and VTCIX?
BNDX and VTCIX share 1 common holdings with a 0.1% weight overlap. Combined, they hold 826 unique securities.
Which pays a higher dividend, BNDX or VTCIX?
BNDX yields 4.53% while VTCIX yields 0.93%, so BNDX currently pays the higher dividend yield.
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