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BNDX vs. IWR: What’s The Difference?

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

The expense ratio of BNDX is 0.11 percentage points lower than IWR’s (0.08% vs. 0.19%). BNDX is mostly comprised of A bonds while IWR has a high exposure to the technology sector. Overall, BNDX has provided lower returns than IWR over the past ten years.

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

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Summary

BNDXIWR
NameVanguard Total International Bond Index Fund ETF SharesiShares Russell Mid-Cap ETF
CategoryN/AMid-Cap Blend
IssuerVanguardiShares
AUM116.41B29.84B
Avg. Return4.63%14.15%
Div. Yield0.94%0.99%
Expense Ratio0.08%0.19%

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 ETF (IWR) is a Mid-Cap Blend fund that is issued by iShares. It currently has 29.84B total assets under management and has yielded an average annual return of 14.15% over the past 10 years. The fund has a dividend yield of 0.99% with an expense ratio of 0.19%.

BNDX’s dividend yield is 0.05% lower than that of IWR (0.94% vs. 0.99%). Also, BNDX yielded on average 9.52% less per year over the past decade (4.63% vs. 14.15%). The expense ratio of BNDX is 0.11 percentage points lower than IWR’s (0.08% vs. 0.19%).

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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.

IWR - Holdings

IWR HoldingsWeight
IDEXX Laboratories Inc0.51%
DocuSign Inc0.51%
Twitter Inc0.48%
Chipotle Mexican Grill Inc0.47%
Roku Inc Class A0.44%
Marvell Technology Inc0.44%
DexCom Inc0.44%
Trane Technologies PLC0.43%
MSCI Inc0.43%
Carrier Global Corp Ordinary Shares0.43%

IWR’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Twitter Inc, Chipotle Mexican Grill Inc, and Roku Inc Class A at 0.51%, 0.51%, 0.48%, 0.47%, and 0.44%.

Marvell Technology Inc (0.44%), DexCom Inc (0.44%), and Trane Technologies PLC (0.43%) have a slightly smaller but still significant weight. MSCI Inc and Carrier Global Corp Ordinary Shares are also represented in the IWR’s holdings at 0.43% and 0.43%.

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Risk Analysis

BNDXIWR
Mean Return01.17
R-squared091.52
Std. Deviation015.66
Alpha0-2.8
Beta01.11
Sharpe Ratio00.86
Treynor Ratio011.72

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

The iShares Russell Mid-Cap ETF (IWR) has a Beta of 1.11 with a Alpha of -2.8 and a Standard Deviation of 15.66. Its R-squared is 91.52 while IWR’s Mean Return is 1.17. Furthermore, the fund has a Sharpe Ratio of 0.86 and a Treynor Ratio of 11.72.

BNDX’s Mean Return is 1.17 points lower than that of IWR and its R-squared is 91.52 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than IWR. The Alpha and Beta of BNDX are 2.80 points higher and 1.11 points lower than IWR’s Alpha and Beta.

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Performance

Annual Returns

BNDX vs. IWR - Annual Returns

YearBNDXIWR
20204.6%16.91%
20197.88%30.31%
20182.94%-9.13%
20172.4%18.32%
20164.67%13.58%
20151.08%-2.57%
20148.83%13.03%
20130.0%34.5%
20120.0%17.13%
20110.0%-1.67%
20100.0%25.25%

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 IWR, returning 34.5% on an annual basis. The poorest year for IWR in the last ten years was 2018, with a yield of -9.13%. Most years the iShares Russell Mid-Cap ETF has given investors modest returns, such as in 2016, 2020, and 2012, when gains were 13.58%, 16.91%, and 17.13% respectively.

Portfolio Growth

BNDX vs. IWR - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$13,6954.63%
IWR$10,000$20,48714.15%

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 IWR, the end total would have been $20,487. This equates to a $10,487 profit over 7 years and a compound annual growth rate (CAGR) of 14.15%.

BNDX’s CAGR is 9.52 percentage points lower than that of IWR and as a result, would have yielded $6,792 less on a $10,000 investment. Thus, BNDX performed worse than IWR by 9.52% annually.


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