BNDX vs XLF

Quick Verdict

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

Lower Fees: BNDXHigher Returns: XLFMore Diversified: BNDX

Side-by-Side Comparison

MetricBNDXXLFWinner
Expense Ratio0.07%0.08%
AUM$83.0B$56.2B
Dividend Yield4.45%1.51%
Holdings13,62680
YTD Return+0.35%+6.14%
1Y Return+1.09%+13.25%
3Y Return (annualized)+4.19%+20.31%
5Y Return (annualized)-0.06%+10.19%
Volatility (annualized)4.1%21.4%
Max Drawdown-17.2%-83.8%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryFixed IncomeEquity
InceptionMay 31, 2013Dec 16, 1998

BNDX vs XLF Performance

Vanguard Total International Bond ETF (BNDX) is a ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year BNDX returned +1.09% while XLF returned +13.25%. Year to date, BNDX is up 0.35% versus a gain of 6.14% for XLF.

Over three years, BNDX compounded at +4.19% per year against +20.31% for XLF; over five years the annualized figures are -0.06% and +10.19% respectively. Across the full 13-year window we track, XLF has the edge at +3.70% annualized vs +1.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XLF has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -83.8% for XLF. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BNDX charges 0.07% per year while XLF charges 0.08%. On a $10,000 position that is $7 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, BNDX currently yields 4.45% against 1.51% for XLF.

Holdings Overlap

0.0%overlap

BNDX and XLF share 0 holdings out of 1346 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 XLF?

BNDX has an expense ratio of 0.07% while XLF charges 0.08%. BNDX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, BNDX or XLF?

Over the past year BNDX returned +1.09% vs +13.25% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (13 years), BNDX annualized +1.08% vs +3.70% for XLF. Past performance does not guarantee future results.

Which is riskier, BNDX or XLF?

XLF has been the more volatile fund at 21.4% annualized versus 4.1% for BNDX. Worst drawdown: BNDX -17.2% vs XLF -83.8%.

Should I hold both BNDX and XLF?

BNDX and XLF have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BNDX and XLF?

BNDX and XLF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1346 unique securities.

Which pays a higher dividend, BNDX or XLF?

BNDX yields 4.45% while XLF yields 1.51%, so BNDX currently pays the higher dividend yield.

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