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BNDX vs. DGRO: What’s The Difference?

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the iShares Core Dividend Growth ETF (DGRO) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and DGRO is a iShares Large Value fund. So, what’s the difference between BNDX and DGRO? And which fund is better?

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BNDX and DGRO have the same expense ratio: 0.08%. BNDX is mostly comprised of A bonds while DGRO has a high exposure to the technology sector. Overall, BNDX has provided lower returns than DGRO over the past ten years.

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

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Summary

BNDXDGRO
NameVanguard Total International Bond Index Fund ETF SharesiShares Core Dividend Growth ETF
CategoryN/ALarge Value
IssuerVanguardiShares
AUM116.41B20B
Avg. Return4.63%12.46%
Div. Yield0.94%2.04%
Expense Ratio0.08%0.08%

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 iShares Core Dividend Growth ETF (DGRO) is a Large Value fund that is issued by iShares. It currently has 20B total assets under management and has yielded an average annual return of 12.46% over the past 10 years. The fund has a dividend yield of 2.04% with an expense ratio of 0.08%.

BNDX’s dividend yield is 1.10% lower than that of DGRO (0.94% vs. 2.04%). Also, BNDX yielded on average 7.83% less per year over the past decade (4.63% vs. 12.46%). BNDX and DGRO have the same expense ratio: 0.08%.

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Fund Composition

Holdings

BNDX - Holdings

BNDX Bond SectorsWeight
A29.19%
AA26.79%
AAA21.59%
BBB19.41%
Others1.57%
Below B1.45%
B0.0%
BB0.0%
US Government0.0%

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.

DGRO - Holdings

DGRO HoldingsWeight
Microsoft Corp3.29%
Apple Inc3.26%
Pfizer Inc2.89%
Johnson & Johnson2.87%
Procter & Gamble Co2.79%
Verizon Communications Inc2.68%
JPMorgan Chase & Co2.57%
The Home Depot Inc2.35%
Merck & Co Inc2.11%
Cisco Systems Inc1.98%

DGRO’s Top Holdings are Microsoft Corp, Apple Inc, Pfizer Inc, Johnson & Johnson, and Procter & Gamble Co at 3.29%, 3.26%, 2.89%, 2.87%, and 2.79%.

Verizon Communications Inc (2.68%), JPMorgan Chase & Co (2.57%), and The Home Depot Inc (2.35%) have a slightly smaller but still significant weight. Merck & Co Inc and Cisco Systems Inc are also represented in the DGRO’s holdings at 2.11% and 1.98%.

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Risk Analysis

BNDXDGRO
Mean Return00
R-squared00
Std. Deviation00
Alpha00
Beta00
Sharpe Ratio00
Treynor Ratio00

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

The iShares Core Dividend Growth ETF (DGRO) has a Beta of 0 with a Alpha of 0 and a Standard Deviation of 0. Its Mean Return is 0 while DGRO’s R-squared is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Sharpe Ratio of 0.

BNDX’s Mean Return is 0.00 points lower than that of DGRO and its R-squared is 0.00 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than DGRO. The Alpha and Beta of BNDX are 0.00 points lower and 0.00 points lower than DGRO’s Alpha and Beta.

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Performance

Annual Returns

BNDX vs. DGRO - Annual Returns

YearBNDXDGRO
20204.6%9.47%
20197.88%30.02%
20182.94%-2.24%
20172.4%22.84%
20164.67%15.27%
20151.08%-0.62%
20148.83%0.0%
20130.0%0.0%
20120.0%0.0%
20110.0%0.0%
20100.0%0.0%

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 DGRO, returning 30.02% on an annual basis. The poorest year for DGRO in the last ten years was 2018, with a yield of -2.24%. Most years the iShares Core Dividend Growth ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% respectively.

Portfolio Growth

BNDX vs. DGRO - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$12,5844.63%
DGRO$10,000$19,58012.46%

A $10,000 investment in BNDX would have resulted in a final balance of $12,584. This is a profit of $2,584 over 6 years and amounts to a compound annual growth rate (CAGR) of 4.63%.

With a $10,000 investment in DGRO, the end total would have been $19,580. This equates to a $9,580 profit over 6 years and a compound annual growth rate (CAGR) of 12.46%.

BNDX’s CAGR is 7.83 percentage points lower than that of DGRO and as a result, would have yielded $6,996 less on a $10,000 investment. Thus, BNDX performed worse than DGRO by 7.83% annually.


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