BNDX vs. EFV: What’s The Difference?

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

The expense ratio of BNDX is 0.31 percentage points lower than EFV’s (0.08% vs. 0.39%). BNDX is mostly comprised of A bonds while EFV has a high exposure to the financial services sector. Overall, BNDX has provided higher returns than EFV over the past ten years.

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

Summary

BNDX EFV
Name Vanguard Total International Bond Index Fund ETF Shares iShares MSCI EAFE Value ETF
Category N/A Foreign Large Value
Issuer Vanguard iShares
AUM 116.41B 14.37B
Avg. Return 4.63% 3.99%
Div. Yield 0.94% 2.94%
Expense Ratio 0.08% 0.39%

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 MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.

BNDX’s dividend yield is 2.00% lower than that of EFV (0.94% vs. 2.94%). Also, BNDX yielded on average 0.63% more per year over the past decade (4.63% vs. 3.99%). The expense ratio of BNDX is 0.31 percentage points lower than EFV’s (0.08% vs. 0.39%).

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.

EFV - Holdings

EFV Holdings Weight
Novartis AG 2.41%
Toyota Motor Corp 2.21%
Commonwealth Bank of Australia 1.59%
Siemens AG 1.45%
Sanofi SA 1.42%
HSBC Holdings PLC 1.4%
TotalEnergies SE 1.35%
Allianz SE 1.23%
GlaxoSmithKline PLC 1.18%
Rio Tinto PLC 1.1%

EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.

HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.

Risk Analysis

BNDX EFV
Mean Return 0 0.42
R-squared 0 92.15
Std. Deviation 0 16.53
Alpha 0 -1.77
Beta 0 1.05
Sharpe Ratio 0 0.26
Treynor Ratio 0 2.92

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

The iShares MSCI EAFE Value ETF (EFV) has a Alpha of -1.77 with a Sharpe Ratio of 0.26 and a Beta of 1.05. Its R-squared is 92.15 while EFV’s Treynor Ratio is 2.92. Furthermore, the fund has a Mean Return of 0.42 and a Standard Deviation of 16.53.

BNDX’s Mean Return is 0.42 points lower than that of EFV and its R-squared is 92.15 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than EFV. The Alpha and Beta of BNDX are 1.77 points higher and 1.05 points lower than EFV’s Alpha and Beta.

Performance

Annual Returns

BNDX vs. EFV - Annual Returns

Year BNDX EFV
2020 4.6% -2.78%
2019 7.88% 15.97%
2018 2.94% -14.88%
2017 2.4% 21.22%
2016 4.67% 4.87%
2015 1.08% -5.89%
2014 8.83% -5.65%
2013 0.0% 22.61%
2012 0.0% 17.52%
2011 0.0% -12.24%
2010 0.0% 3.18%

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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.

Portfolio Growth

BNDX vs. EFV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
BNDX $10,000 $13,695 4.63%
EFV $10,000 $10,832 3.99%

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 EFV, the end total would have been $10,832. This equates to a $832 profit over 7 years and a compound annual growth rate (CAGR) of 3.99%.

BNDX’s CAGR is 0.63 percentage points higher than that of EFV and as a result, would have yielded $2,863 more on a $10,000 investment. Thus, BNDX outperformed EFV by 0.63% annually.


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