BNDX vs. IWP: What’s The Difference?

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

The expense ratio of BNDX is 0.16 percentage points lower than IWP’s (0.08% vs. 0.24%). BNDX is mostly comprised of A bonds while IWP has a high exposure to the technology sector. Overall, BNDX has provided lower returns than IWP over the past ten years.

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

Summary

BNDX IWP
Name Vanguard Total International Bond Index Fund ETF Shares iShares Russell Mid-Cap Growth ETF
Category N/A Mid-Cap Growth
Issuer Vanguard iShares
AUM 116.41B 15.7B
Avg. Return 4.63% 16.75%
Div. Yield 0.94% 0.26%
Expense Ratio 0.08% 0.24%

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 Russell Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.

BNDX’s dividend yield is 0.68% higher than that of IWP (0.94% vs. 0.26%). Also, BNDX yielded on average 12.12% less per year over the past decade (4.63% vs. 16.75%). The expense ratio of BNDX is 0.16 percentage points lower than IWP’s (0.08% vs. 0.24%).

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.

IWP - Holdings

IWP Holdings Weight
IDEXX Laboratories Inc 1.3%
DocuSign Inc 1.3%
Roku Inc Class A 1.29%
Match Group Inc 1.06%
Chipotle Mexican Grill Inc 1.06%
Pinterest Inc 1.05%
Veeva Systems Inc Class A 1.04%
Palantir Technologies Inc Ordinary Shares – Class A 1.04%
Lululemon Athletica Inc 1.01%
DexCom Inc 1.0%

IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.

Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.

Risk Analysis

BNDX IWP
Mean Return 0 1.27
R-squared 0 87.01
Std. Deviation 0 16.05
Alpha 0 -1.03
Beta 0 1.1
Sharpe Ratio 0 0.91
Treynor Ratio 0 12.98

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

The iShares Russell Mid-Cap Growth ETF (IWP) has a Treynor Ratio of 12.98 with a Alpha of -1.03 and a Beta of 1.1. Its R-squared is 87.01 while IWP’s Mean Return is 1.27. Furthermore, the fund has a Sharpe Ratio of 0.91 and a Standard Deviation of 16.05.

BNDX’s Mean Return is 1.27 points lower than that of IWP and its R-squared is 87.01 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than IWP. The Alpha and Beta of BNDX are 1.03 points higher and 1.10 points lower than IWP’s Alpha and Beta.

Performance

Annual Returns

BNDX vs. IWP - Annual Returns

Year BNDX IWP
2020 4.6% 35.29%
2019 7.88% 35.14%
2018 2.94% -4.95%
2017 2.4% 24.98%
2016 4.67% 7.15%
2015 1.08% -0.39%
2014 8.83% 11.68%
2013 0.0% 35.44%
2012 0.0% 15.62%
2011 0.0% -1.82%
2010 0.0% 26.1%

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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.

Portfolio Growth

BNDX vs. IWP - Portfolio Growth

Fund Initial Balance Final Balance CAGR
BNDX $10,000 $13,695 4.63%
IWP $10,000 $25,888 16.75%

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 IWP, the end total would have been $25,888. This equates to a $15,888 profit over 7 years and a compound annual growth rate (CAGR) of 16.75%.

BNDX’s CAGR is 12.12 percentage points lower than that of IWP and as a result, would have yielded $12,193 less on a $10,000 investment. Thus, BNDX performed worse than IWP by 12.12% annually.


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