BNDX vs VUG

Quick Verdict

VUG has a lower expense ratio. VUG delivered stronger 1-year returns. BNDX offers more diversification with 1269 holdings.

Lower Fees: VUGHigher Returns: VUGMore Diversified: BNDX

Side-by-Side Comparison

MetricBNDXVUGWinner
Expense Ratio0.07%0.03%
AUM$83.0B$223.2B
Dividend Yield4.45%0.47%
Holdings13,626155
YTD Return+0.35%+9.57%
1Y Return+1.09%+16.51%
3Y Return (annualized)+4.19%+24.05%
5Y Return (annualized)-0.06%+13.00%
Volatility (annualized)4.1%16.5%
Max Drawdown-17.2%-51.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMay 31, 2013Jan 26, 2004

BNDX vs VUG Performance

Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year BNDX returned +1.09% while VUG returned +16.51%. Year to date, BNDX is up 0.35% versus a gain of 9.57% for VUG.

Over three years, BNDX compounded at +4.19% per year against +24.05% for VUG; over five years the annualized figures are -0.06% and +13.00% respectively. Across the full 13-year window we track, VUG has the edge at +11.25% annualized vs +1.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BNDX charges 0.07% per year while VUG 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 0.47% for VUG.

Holdings Overlap

0.0%overlap

BNDX and VUG share 0 holdings out of 1415 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 VUG?

BNDX has an expense ratio of 0.07% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, BNDX or VUG?

Over the past year BNDX returned +1.09% vs +16.51% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (13 years), BNDX annualized +1.08% vs +11.25% for VUG. Past performance does not guarantee future results.

Which is riskier, BNDX or VUG?

VUG has been the more volatile fund at 16.5% annualized versus 4.1% for BNDX. Worst drawdown: BNDX -17.2% vs VUG -51.4%.

Should I hold both BNDX and VUG?

BNDX and VUG have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BNDX and VUG?

BNDX and VUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1415 unique securities.

Which pays a higher dividend, BNDX or VUG?

BNDX yields 4.45% while VUG yields 0.47%, so BNDX currently pays the higher dividend yield.

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