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BNDX vs. DIA: What’s The Difference?

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between BNDX and DIA? And which fund is better?

The expense ratio of BNDX is 0.08 percentage points lower than DIA’s (0.08% vs. 0.16%). BNDX is mostly comprised of A bonds while DIA has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than DIA over the past ten years.

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

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Summary

BNDXDIA
NameVanguard Total International Bond Index Fund ETF SharesSPDR Dow Jones Industrial Average ETF Trust
CategoryN/ALarge Value
IssuerVanguardSPDR State Street Global Advisors
AUM116.41B30.46B
Avg. Return4.63%13.35%
Div. Yield0.94%1.61%
Expense Ratio0.08%0.16%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

BNDX’s dividend yield is 0.67% lower than that of DIA (0.94% vs. 1.61%). Also, BNDX yielded on average 8.72% less per year over the past decade (4.63% vs. 13.35%). The expense ratio of BNDX is 0.08 percentage points lower than DIA’s (0.08% vs. 0.16%).

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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.

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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Risk Analysis

BNDXDIA
Mean Return01.13
R-squared093.31
Std. Deviation013.68
Alpha0-0.94
Beta00.97
Sharpe Ratio00.94
Treynor Ratio013.07

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

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a R-squared of 93.31 with a Treynor Ratio of 13.07 and a Sharpe Ratio of 0.94. Its Mean Return is 1.13 while DIA’s Alpha is -0.94. Furthermore, the fund has a Beta of 0.97 and a Standard Deviation of 13.68.

BNDX’s Mean Return is 1.13 points lower than that of DIA and its R-squared is 93.31 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than DIA. The Alpha and Beta of BNDX are 0.94 points higher and 0.97 points lower than DIA’s Alpha and Beta.

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Performance

Annual Returns

BNDX vs. DIA - Annual Returns

YearBNDXDIA
20204.6%9.63%
20197.88%25.09%
20182.94%-3.6%
20172.4%27.97%
20164.67%16.28%
20151.08%0.1%
20148.83%9.88%
20130.0%29.41%
20120.0%10.04%
20110.0%8.21%
20100.0%13.87%

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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

BNDX vs. DIA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$13,6954.63%
DIA$10,000$21,63613.35%

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 DIA, the end total would have been $21,636. This equates to a $11,636 profit over 7 years and a compound annual growth rate (CAGR) of 13.35%.

BNDX’s CAGR is 8.72 percentage points lower than that of DIA and as a result, would have yielded $7,941 less on a $10,000 investment. Thus, BNDX performed worse than DIA by 8.72% annually.


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