The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the iShares S&P 500 Growth ETF (IVW) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and IVW is a iShares Large Growth fund. So, what’s the difference between BNDX and IVW? And which fund is better?
The expense ratio of BNDX is 0.10 percentage points lower than IVW’s (0.08% vs. 0.18%). BNDX is mostly comprised of A bonds while IVW has a high exposure to the technology sector. Overall, BNDX has provided lower returns than IVW over the past ten years.
In this article, we’ll compare BNDX vs. IVW. We’ll look at industry exposure and holdings, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss BNDX’s and IVW’s performance, annual returns, and risk metrics and examine how these affect their overall returns.
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Summary
| BNDX | IVW | |
| Name | Vanguard Total International Bond Index Fund ETF Shares | iShares S&P 500 Growth ETF |
| Category | N/A | Large Growth |
| Issuer | Vanguard | iShares |
| AUM | 116.41B | 35.72B |
| Avg. Return | 4.63% | 16.74% |
| Div. Yield | 0.94% | 0.61% |
| 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 Growth ETF (IVW) is a Large Growth fund that is issued by iShares. It currently has 35.72B total assets under management and has yielded an average annual return of 16.74% over the past 10 years. The fund has a dividend yield of 0.61% with an expense ratio of 0.18%.
BNDX’s dividend yield is 0.33% higher than that of IVW (0.94% vs. 0.61%). Also, BNDX yielded on average 12.11% less per year over the past decade (4.63% vs. 16.74%). The expense ratio of BNDX is 0.10 percentage points lower than IVW’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.
| IVW Holdings | Weight |
| Apple Inc | 11.46% |
| Microsoft Corp | 10.75% |
| Amazon.com Inc | 7.14% |
| Facebook Inc Class A | 4.28% |
| Alphabet Inc Class A | 4.06% |
| Alphabet Inc Class C | 3.86% |
| Tesla Inc | 2.65% |
| NVIDIA Corp | 2.43% |
| PayPal Holdings Inc | 1.62% |
| Adobe Inc | 1.49% |
IVW’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 11.46%, 10.75%, 7.14%, 4.28%, and 4.06%.
Alphabet Inc Class C (3.86%), Tesla Inc (2.65%), and NVIDIA Corp (2.43%) have a slightly smaller but still significant weight. PayPal Holdings Inc and Adobe Inc are also represented in the IVW’s holdings at 1.62% and 1.49%.
Risk Analysis
| BNDX | IVW | |
| Mean Return | 0 | 1.44 |
| R-squared | 0 | 93.82 |
| Std. Deviation | 0 | 13.77 |
| Alpha | 0 | 2.19 |
| Beta | 0 | 0.98 |
| Sharpe Ratio | 0 | 1.21 |
| Treynor Ratio | 0 | 17.24 |
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Sharpe Ratio of 0 with a Beta of 0 and a Alpha of 0. Its Mean Return is 0 while BNDX’s R-squared is 0. Furthermore, the fund has a Standard Deviation of 0 and a Treynor Ratio of 0.
The iShares S&P 500 Growth ETF (IVW) has a Mean Return of 1.44 with a R-squared of 93.82 and a Alpha of 2.19. Its Treynor Ratio is 17.24 while IVW’s Sharpe Ratio is 1.21. Furthermore, the fund has a Standard Deviation of 13.77 and a Beta of 0.98.
BNDX’s Mean Return is 1.44 points lower than that of IVW and its R-squared is 93.82 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than IVW. The Alpha and Beta of BNDX are 2.19 points lower and 0.98 points lower than IVW’s Alpha and Beta.
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Performance
Annual Returns
| Year | BNDX | IVW |
| 2020 | 4.6% | 33.21% |
| 2019 | 7.88% | 30.91% |
| 2018 | 2.94% | -0.17% |
| 2017 | 2.4% | 27.2% |
| 2016 | 4.67% | 6.74% |
| 2015 | 1.08% | 5.33% |
| 2014 | 8.83% | 14.67% |
| 2013 | 0.0% | 32.48% |
| 2012 | 0.0% | 14.39% |
| 2011 | 0.0% | 4.49% |
| 2010 | 0.0% | 14.84% |
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 2020 was the strongest year for IVW, returning 33.21% on an annual basis. The poorest year for IVW in the last ten years was 2018, with a yield of -0.17%. Most years the iShares S&P 500 Growth ETF has given investors modest returns, such as in 2012, 2014, and 2010, when gains were 14.39%, 14.67%, and 14.84% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| BNDX | $10,000 | $13,695 | 4.63% |
| IVW | $10,000 | $28,548 | 16.74% |
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 IVW, the end total would have been $28,548. This equates to a $18,548 profit over 7 years and a compound annual growth rate (CAGR) of 16.74%.
BNDX’s CAGR is 12.11 percentage points lower than that of IVW and as a result, would have yielded $14,853 less on a $10,000 investment. Thus, BNDX performed worse than IVW by 12.11% annually.
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