The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Vanguard Short-Term Bond Index Fund ETF Shares (BSV) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and BSV is a Vanguard Short-Term Bond fund. So, what’s the difference between BNDX and BSV? And which fund is better?
The expense ratio of BNDX is 0.03 percentage points higher than BSV’s (0.08% vs. 0.05%). BNDX is mostly comprised of A bonds and BSV has a high exposure to AAA bond. Overall, BNDX has provided higher returns than BSV over the past ten years.
In this article, we’ll compare BNDX vs. BSV. We’ll look at holdings and risk metrics, as well as at their annual returns and fund composition. Moreover, I’ll also discuss BNDX’s and BSV’s industry exposure, portfolio growth, and performance and examine how these affect their overall returns.
|Name||Vanguard Total International Bond Index Fund ETF Shares||Vanguard Short-Term Bond Index Fund ETF Shares|
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 Short-Term Bond Index Fund ETF Shares (BSV) is a Short-Term Bond fund that is issued by Vanguard. It currently has 67.71B total assets under management and has yielded an average annual return of 2.27% over the past 10 years. The fund has a dividend yield of 1.48% with an expense ratio of 0.05%.
BNDX’s dividend yield is 0.54% lower than that of BSV (0.94% vs. 1.48%). Also, BNDX yielded on average 2.36% more per year over the past decade (4.63% vs. 2.27%). The expense ratio of BNDX is 0.03 percentage points higher than BSV’s (0.08% vs. 0.05%).
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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.
|BSV Bond Sectors||Weight|
BSV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 71.65%, 13.08%, 11.95%, 3.28%, and 0.03%. The fund is less weighted towards Below B (0.01%), B (0.0%), and BB (0.0%) rated bonds.
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The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Mean Return of 0 with a Sharpe Ratio of 0 and a Alpha of 0. Its R-squared is 0 while BNDX’s Standard Deviation is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Beta of 0.
The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) has a R-squared of 78.38 with a Beta of 0.38 and a Sharpe Ratio of 0.98. Its Treynor Ratio is 3.33 while BSV’s Mean Return is 0.16. Furthermore, the fund has a Standard Deviation of 1.33 and a Alpha of 0.21.
BNDX’s Mean Return is 0.16 points lower than that of BSV and its R-squared is 78.38 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than BSV. The Alpha and Beta of BNDX are 0.21 points lower and 0.38 points lower than BSV’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 2019 was the strongest year for BSV, returning 4.92% on an annual basis. The poorest year for BSV in the last ten years was 2013, with a yield of 0.17%. Most years the Vanguard Short-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2018, 2016, and 2012, when gains were 1.34%, 1.42%, and 1.98% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 BSV, the end total would have been $11,679. This equates to a $1,679 profit over 7 years and a compound annual growth rate (CAGR) of 2.27%.
BNDX’s CAGR is 2.36 percentage points higher than that of BSV and as a result, would have yielded $2,016 more on a $10,000 investment. Thus, BNDX outperformed BSV by 2.36% annually.
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