BNDX vs. BIV: What’s The Difference?

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and BIV is a Vanguard Intermediate-Term Bond fund. So, what’s the difference between BNDX and BIV? And which fund is better?

The expense ratio of BNDX is 0.03 percentage points higher than BIV’s (0.08% vs. 0.05%). BNDX is mostly comprised of A bonds and BIV has a high exposure to AAA bond. Overall, BNDX has provided lower returns than BIV over the past ten years.

In this article, we’ll compare BNDX vs. BIV. We’ll look at portfolio growth and holdings, as well as at their fund composition and risk metrics. Moreover, I’ll also discuss BNDX’s and BIV’s annual returns, performance, and industry exposure and examine how these affect their overall returns.

Summary

BNDX BIV
Name Vanguard Total International Bond Index Fund ETF Shares Vanguard Intermediate-Term Bond Index Fund ETF Shares
Category N/A Intermediate-Term Bond
Issuer Vanguard Vanguard
AUM 116.41B 39.05B
Avg. Return 4.63% 5.31%
Div. Yield 0.94% 2.06%
Expense Ratio 0.08% 0.05%

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 Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 39.05B total assets under management and has yielded an average annual return of 5.31% over the past 10 years. The fund has a dividend yield of 2.06% with an expense ratio of 0.05%.

BNDX’s dividend yield is 1.12% lower than that of BIV (0.94% vs. 2.06%). Also, BNDX yielded on average 0.69% less per year over the past decade (4.63% vs. 5.31%). The expense ratio of BNDX is 0.03 percentage points higher than BIV’s (0.08% vs. 0.05%).

Fund Composition

Holdings

BNDX - Holdings

BNDX Bond Sectors Weight
A 29.19%
AA 26.79%
AAA 21.59%
BBB 19.41%
Others 1.57%
Below B 1.45%
B 0.0%
BB 0.0%
US Government 0.0%

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.

BIV - Holdings

BIV Bond Sectors Weight
AAA 54.51%
BBB 25.24%
A 16.97%
AA 3.1%
Others 0.15%
Below B 0.03%
B 0.0%
BB 0.0%
US Government 0.0%

BIV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 54.51%, 25.24%, 16.97%, 3.1%, and 0.15%. The fund is less weighted towards Below B (0.03%), B (0.0%), and BB (0.0%) rated bonds.

Risk Analysis

BNDX BIV
Mean Return 0 0.35
R-squared 0 95.12
Std. Deviation 0 4.09
Alpha 0 -0.07
Beta 0 1.33
Sharpe Ratio 0 0.89
Treynor Ratio 0 2.72

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Sharpe Ratio of 0 with a Alpha of 0 and a Standard Deviation of 0. Its Treynor Ratio is 0 while BNDX’s R-squared is 0. Furthermore, the fund has a Mean Return of 0 and a Beta of 0.

The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) has a Alpha of -0.07 with a Sharpe Ratio of 0.89 and a Mean Return of 0.35. Its R-squared is 95.12 while BIV’s Beta is 1.33. Furthermore, the fund has a Treynor Ratio of 2.72 and a Standard Deviation of 4.09.

BNDX’s Mean Return is 0.35 points lower than that of BIV and its R-squared is 95.12 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than BIV. The Alpha and Beta of BNDX are 0.07 points higher and 1.33 points lower than BIV’s Alpha and Beta.

Performance

Annual Returns

BNDX vs. BIV - Annual Returns

Year BNDX BIV
2020 4.6% 9.71%
2019 7.88% 10.19%
2018 2.94% -0.09%
2017 2.4% 3.8%
2016 4.67% 2.86%
2015 1.08% 1.23%
2014 8.83% 7.0%
2013 0.0% -3.44%
2012 0.0% 7.02%
2011 0.0% 10.62%
2010 0.0% 9.55%

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 2011 was the strongest year for BIV, returning 10.62% on an annual basis. The poorest year for BIV in the last ten years was 2013, with a yield of -3.44%. Most years the Vanguard Intermediate-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 3.8%, 7.0%, and 7.02% respectively.

Portfolio Growth

BNDX vs. BIV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
BNDX $10,000 $13,695 4.63%
BIV $10,000 $13,968 5.31%

A $10,000 investment in BNDX would have resulted in a final balance of $13,695. This is a profit of $3,695 over 7 years and amounts to a compound annual growth rate (CAGR) of 4.63%.

With a $10,000 investment in BIV, the end total would have been $13,968. This equates to a $3,968 profit over 7 years and a compound annual growth rate (CAGR) of 5.31%.

BNDX’s CAGR is 0.69 percentage points lower than that of BIV and as a result, would have yielded $273 less on a $10,000 investment. Thus, BNDX performed worse than BIV by 0.69% annually.


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