The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the ARK Innovation ETF (ARKK) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and ARKK is a ARK ETF Trust Mid-Cap Growth fund. So, what’s the difference between BNDX and ARKK? And which fund is better?
The expense ratio of BNDX is 0.67 percentage points lower than ARKK’s (0.08% vs. 0.75%). BNDX is mostly comprised of A bonds while ARKK has a high exposure to the technology sector. Overall, BNDX has provided lower returns than ARKK over the past ten years.
In this article, we’ll compare BNDX vs. ARKK. We’ll look at annual returns and portfolio growth, as well as at their fund composition and performance. Moreover, I’ll also discuss BNDX’s and ARKK’s industry exposure, holdings, and risk metrics and examine how these affect their overall returns.
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|Name||Vanguard Total International Bond Index Fund ETF Shares||ARK Innovation ETF|
|Issuer||Vanguard||ARK ETF Trust|
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) is a N/A fund that is issued by Vanguard. It currently has 116.41B total assets under management and has yielded an average annual return of 4.63% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.08%.
The ARK Innovation ETF (ARKK) is a Mid-Cap Growth fund that is issued by ARK ETF Trust. It currently has 25.52B total assets under management and has yielded an average annual return of 55.45% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.75%.
BNDX’s dividend yield is 0.94% higher than that of ARKK (0.94% vs. 0.0%). Also, BNDX yielded on average 50.82% less per year over the past decade (4.63% vs. 55.45%). The expense ratio of BNDX is 0.67 percentage points lower than ARKK’s (0.08% vs. 0.75%).
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|BNDX Bond Sectors||Weight|
BNDX’s Top Bond Sectors are ratings of A, AA, AAA, BBB, and Others at 29.19%, 26.79%, 21.59%, 19.41%, and 1.57%. The fund is less weighted towards Below B (1.45%), B (0.0%), and BB (0.0%) rated bonds.
|Roku Inc Class A||6.48%|
|Teladoc Health Inc||5.76%|
|Square Inc A||4.37%|
|Zoom Video Communications Inc||4.36%|
|Shopify Inc A||4.27%|
|Spotify Technology SA||3.68%|
|Twilio Inc A||3.66%|
|Coinbase Global Inc Ordinary Shares – Class A||3.65%|
|Unity Software Inc Ordinary Shares||3.41%|
ARKK’s Top Holdings are Tesla Inc, Roku Inc Class A, Teladoc Health Inc, Square Inc A, and Zoom Video Communications Inc at 9.56%, 6.48%, 5.76%, 4.37%, and 4.36%.
Shopify Inc A (4.27%), Spotify Technology SA (3.68%), and Twilio Inc A (3.66%) have a slightly smaller but still significant weight. Coinbase Global Inc Ordinary Shares – Class A and Unity Software Inc Ordinary Shares are also represented in the ARKK’s holdings at 3.65% and 3.41%.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Mean Return of 0 with a Standard Deviation of 0 and a Treynor Ratio of 0. Its Alpha is 0 while BNDX’s Beta is 0. Furthermore, the fund has a R-squared of 0 and a Sharpe Ratio of 0.
The ARK Innovation ETF (ARKK) has a Treynor Ratio of 0 with a R-squared of 0 and a Sharpe Ratio of 0. Its Standard Deviation is 0 while ARKK’s Mean Return is 0. Furthermore, the fund has a Alpha of 0 and a Beta of 0.
BNDX’s Mean Return is 0.00 points lower than that of ARKK and its R-squared is 0.00 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than ARKK. The Alpha and Beta of BNDX are 0.00 points lower and 0.00 points lower than ARKK’s Alpha and Beta.
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BNDX had its best year in 2014 with an annual return of 8.83%. BNDX’s worst year over the past decade yielded 0.0% and occurred in 2013. In most years the Vanguard Total International Bond Index Fund ETF Shares provided moderate returns such as in 2015, 2017, and 2018 where annual returns amounted to 1.08%, 2.4%, and 2.94% respectively.
The year 2020 was the strongest year for ARKK, returning 152.52% on an annual basis. The poorest year for ARKK in the last ten years was 2016, with a yield of -1.96%. Most years the ARK Innovation ETF has given investors modest returns, such as in 2011, 2010, and 2018, when gains were 0.0%, 0.0%, and 3.58% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in BNDX would have resulted in a final balance of $12,450. This is a profit of $2,450 over 5 years and amounts to a compound annual growth rate (CAGR) of 4.63%.
With a $10,000 investment in ARKK, the end total would have been $65,218. This equates to a $55,218 profit over 5 years and a compound annual growth rate (CAGR) of 55.45%.
BNDX’s CAGR is 50.82 percentage points lower than that of ARKK and as a result, would have yielded $52,768 less on a $10,000 investment. Thus, BNDX performed worse than ARKK by 50.82% annually.
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