BNDX vs VTEB
Vanguard Total International Bond ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB has a lower expense ratio. VTEB delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | BNDX | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $83.0B | $46.0B | |
| Dividend Yield | 4.45% | 3.34% | |
| Holdings | 13,626 | 9,952 | |
| YTD Return | +0.29% | +0.51% | |
| 1Y Return | +1.03% | +4.96% | |
| 3Y Return (annualized) | +4.09% | +3.17% | |
| 5Y Return (annualized) | -0.07% | +0.57% | |
| Volatility (annualized) | 4.1% | 4.9% | |
| Max Drawdown | -17.2% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | May 31, 2013 | Aug 21, 2015 |
BNDX vs VTEB Performance
Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year BNDX returned +1.03% while VTEB returned +4.96%. Year to date, BNDX is up 0.29% versus a gain of 0.51% for VTEB.
Over three years, BNDX compounded at +4.09% per year against +3.17% for VTEB; over five years the annualized figures are -0.07% and +0.57% respectively. Across the full 11-year window we track, VTEB has the edge at +1.26% annualized vs +1.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTEB has been the more volatile fund, with annualized monthly volatility of 4.9% 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 -17.0% for VTEB. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BNDX charges 0.07% per year while VTEB 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 3.34% for VTEB.
Holdings Overlap
BNDX and VTEB share 0 holdings out of 4802 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 VTEB?
BNDX has an expense ratio of 0.07% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, BNDX or VTEB?
Over the past year BNDX returned +1.03% vs +4.96% for VTEB, so VTEB leads on 1-year performance. Over the longest common window we track (11 years), BNDX annualized +1.07% vs +1.26% for VTEB. Past performance does not guarantee future results.
Which is riskier, BNDX or VTEB?
VTEB has been the more volatile fund at 4.9% annualized versus 4.1% for BNDX. Worst drawdown: BNDX -17.2% vs VTEB -17.0%.
Should I hold both BNDX and VTEB?
BNDX and VTEB have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDX and VTEB?
BNDX and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4802 unique securities.
Which pays a higher dividend, BNDX or VTEB?
BNDX yields 4.45% while VTEB yields 3.34%, so BNDX currently pays the higher dividend yield.
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