BNDX vs VTIP
Vanguard Total International Bond ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VTIP delivered stronger 1-year returns. BNDX offers more diversification with 1269 holdings.
Side-by-Side Comparison
| Metric | BNDX | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $83.0B | $19.3B | |
| Dividend Yield | 4.45% | 3.60% | |
| Holdings | 13,626 | 27 | |
| YTD Return | +0.62% | +1.87% | |
| 1Y Return | +1.16% | +3.01% | |
| 3Y Return (annualized) | +3.99% | +5.37% | |
| 5Y Return (annualized) | +0.00% | +3.39% | |
| Volatility (annualized) | 4.1% | 2.4% | |
| Max Drawdown | -17.2% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | May 31, 2013 | Oct 12, 2012 |
BNDX vs VTIP Performance
Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year BNDX returned +1.16% while VTIP returned +3.01%. Year to date, BNDX is up 0.62% versus a gain of 1.87% for VTIP.
Over three years, BNDX compounded at +3.99% per year against +5.37% for VTIP; over five years the annualized figures are +0.00% and +3.39% respectively. Across the full 13-year window we track, VTIP has the edge at +1.58% annualized vs +1.10%. 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 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDX charges 0.07% per year while VTIP 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 3.60% for VTIP.
Holdings Overlap
BNDX and VTIP share 0 holdings out of 1292 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 VTIP?
BNDX has an expense ratio of 0.07% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, BNDX or VTIP?
Over the past year BNDX returned +1.16% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (13 years), BNDX annualized +1.10% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, BNDX or VTIP?
BNDX has been the more volatile fund at 4.1% annualized versus 2.4% for VTIP. Worst drawdown: BNDX -17.2% vs VTIP -7.1%.
Should I hold both BNDX and VTIP?
BNDX and VTIP have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDX and VTIP?
BNDX and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1292 unique securities.
Which pays a higher dividend, BNDX or VTIP?
BNDX yields 4.45% while VTIP yields 3.60%, so BNDX currently pays the higher dividend yield.
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