BNDX vs VWO
Vanguard Total International Bond ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. VWO delivered stronger 1-year returns. BNDX offers more diversification with 6,859 holdings.
Side-by-Side Comparison
| Metric | BNDX | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $82.7B | $122.0B | |
| Dividend Yield | 4.53% | 2.39% | |
| Holdings | 6,859 | 6,334 | |
| YTD Return | +0.24% | +10.18% | |
| 1Y Return | +1.27% | +20.99% | |
| 3Y Return (annualized) | +4.21% | +18.45% | |
| 5Y Return (annualized) | -0.10% | +7.14% | |
| Volatility (annualized) | 4.1% | 20.1% | |
| Max Drawdown | -17.2% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 31, 2013 | Mar 4, 2005 |
BNDX vs VWO Performance
Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year BNDX returned +1.27% while VWO returned +20.99%. Year to date, BNDX is up 0.24% versus a gain of 10.18% for VWO.
Over three years, BNDX compounded at +4.21% per year against +18.45% for VWO; over five years the annualized figures are -0.10% and +7.14% respectively. Across the full 13-year window we track, VWO has the edge at +4.98% annualized vs +1.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDX charges 0.07% per year while VWO charges 0.06%. On a $10,000 position that is $7 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, BNDX currently yields 4.53% against 2.39% for VWO.
Holdings Overlap
BNDX and VWO share 0 holdings out of 3986 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 VWO?
BNDX has an expense ratio of 0.07% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BNDX or VWO?
Over the past year BNDX returned +1.27% vs +20.99% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (13 years), BNDX annualized +1.07% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, BNDX or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 4.1% for BNDX. Worst drawdown: BNDX -17.2% vs VWO -68.3%.
Should I hold both BNDX and VWO?
BNDX and VWO have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDX and VWO?
BNDX and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3986 unique securities.
Which pays a higher dividend, BNDX or VWO?
BNDX yields 4.53% while VWO yields 2.39%, so BNDX currently pays the higher dividend yield.
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