The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and IVE is a iShares Large Value fund. So, what’s the difference between BNDX and IVE? And which fund is better?
The expense ratio of BNDX is 0.10 percentage points lower than IVE’s (0.08% vs. 0.18%). BNDX is mostly comprised of A bonds while IVE has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than IVE over the past ten years.
In this article, we’ll compare BNDX vs. IVE. We’ll look at fund composition and annual returns, as well as at their risk metrics and industry exposure. Moreover, I’ll also discuss BNDX’s and IVE’s holdings, performance, and portfolio growth and examine how these affect their overall returns.
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Summary
| BNDX | IVE | |
| Name | Vanguard Total International Bond Index Fund ETF Shares | iShares S&P 500 Value ETF |
| Category | N/A | Large Value |
| Issuer | Vanguard | iShares |
| AUM | 116.41B | 22.4B |
| Avg. Return | 4.63% | 11.68% |
| Div. Yield | 0.94% | 1.88% |
| Expense Ratio | 0.08% | 0.18% |
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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.
BNDX’s dividend yield is 0.94% lower than that of IVE (0.94% vs. 1.88%). Also, BNDX yielded on average 7.06% less per year over the past decade (4.63% vs. 11.68%). The expense ratio of BNDX is 0.10 percentage points lower than IVE’s (0.08% vs. 0.18%).
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Fund Composition
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.
| IVE Holdings | Weight |
| Berkshire Hathaway Inc Class B | 3.05% |
| JPMorgan Chase & Co | 2.65% |
| The Walt Disney Co | 1.85% |
| Bank of America Corp | 1.67% |
| Johnson & Johnson | 1.57% |
| Exxon Mobil Corp | 1.41% |
| Pfizer Inc | 1.38% |
| Cisco Systems Inc | 1.35% |
| Verizon Communications Inc | 1.33% |
| Intel Corp | 1.25% |
IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.
Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.
Risk Analysis
| BNDX | IVE | |
| Mean Return | 0 | 1.05 |
| R-squared | 0 | 92.08 |
| Std. Deviation | 0 | 14.3 |
| Alpha | 0 | -2.9 |
| Beta | 0 | 1.01 |
| Sharpe Ratio | 0 | 0.83 |
| Treynor Ratio | 0 | 11.41 |
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Beta of 0 with a Mean Return of 0 and a Sharpe Ratio of 0. Its Alpha is 0 while BNDX’s Treynor Ratio is 0. Furthermore, the fund has a Standard Deviation of 0 and a R-squared of 0.
The iShares S&P 500 Value ETF (IVE) has a Treynor Ratio of 11.41 with a R-squared of 92.08 and a Standard Deviation of 14.3. Its Alpha is -2.9 while IVE’s Mean Return is 1.05. Furthermore, the fund has a Beta of 1.01 and a Sharpe Ratio of 0.83.
BNDX’s Mean Return is 1.05 points lower than that of IVE and its R-squared is 92.08 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than IVE. The Alpha and Beta of BNDX are 2.90 points higher and 1.01 points lower than IVE’s Alpha and Beta.
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Performance
Annual Returns
| Year | BNDX | IVE |
| 2020 | 4.6% | 1.24% |
| 2019 | 7.88% | 31.71% |
| 2018 | 2.94% | -9.09% |
| 2017 | 2.4% | 15.19% |
| 2016 | 4.67% | 17.17% |
| 2015 | 1.08% | -3.24% |
| 2014 | 8.83% | 12.14% |
| 2013 | 0.0% | 31.69% |
| 2012 | 0.0% | 17.45% |
| 2011 | 0.0% | -0.63% |
| 2010 | 0.0% | 14.9% |
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 IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| BNDX | $10,000 | $13,695 | 4.63% |
| IVE | $10,000 | $17,752 | 11.68% |
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 IVE, the end total would have been $17,752. This equates to a $7,752 profit over 7 years and a compound annual growth rate (CAGR) of 11.68%.
BNDX’s CAGR is 7.06 percentage points lower than that of IVE and as a result, would have yielded $4,057 less on a $10,000 investment. Thus, BNDX performed worse than IVE by 7.06% annually.
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