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BNDX vs. MDY: What’s The Difference?

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the SPDR S&P MIDCAP 400 ETF Trust (MDY) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and MDY is a SPDR State Street Global Advisors Mid-Cap Blend fund. So, what’s the difference between BNDX and MDY? And which fund is better?

The expense ratio of BNDX is 0.15 percentage points lower than MDY’s (0.08% vs. 0.23%). BNDX is mostly comprised of A bonds while MDY has a high exposure to the industrials sector. Overall, BNDX has provided lower returns than MDY over the past ten years.

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

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Summary

BNDXMDY
NameVanguard Total International Bond Index Fund ETF SharesSPDR S&P MIDCAP 400 ETF Trust
CategoryN/AMid-Cap Blend
IssuerVanguardSPDR State Street Global Advisors
AUM116.41B21.31B
Avg. Return4.63%13.29%
Div. Yield0.94%0.94%
Expense Ratio0.08%0.23%

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 SPDR S&P MIDCAP 400 ETF Trust (MDY) is a Mid-Cap Blend fund that is issued by SPDR State Street Global Advisors. It currently has 21.31B total assets under management and has yielded an average annual return of 13.29% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.23%.

BNDX’s dividend yield is 0.00% lower than that of MDY (0.94% vs. 0.94%). Also, BNDX yielded on average 8.66% less per year over the past decade (4.63% vs. 13.29%). The expense ratio of BNDX is 0.15 percentage points lower than MDY’s (0.08% vs. 0.23%).

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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.

MDY - Holdings

MDY HoldingsWeight
Bio-Techne Corp0.75%
Molina Healthcare Inc0.63%
Cognex Corp0.63%
Fair Isaac Corp0.62%
XPO Logistics Inc0.61%
SolarEdge Technologies Inc0.61%
Signature Bank0.6%
Graco Inc0.55%
Camden Property Trust0.55%
FactSet Research Systems Inc0.54%

MDY’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and XPO Logistics Inc at 0.75%, 0.63%, 0.63%, 0.62%, and 0.61%.

SolarEdge Technologies Inc (0.61%), Signature Bank (0.6%), and Graco Inc (0.55%) have a slightly smaller but still significant weight. Camden Property Trust and FactSet Research Systems Inc are also represented in the MDY’s holdings at 0.55% and 0.54%.

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Risk Analysis

BNDXMDY
Mean Return01.08
R-squared086.66
Std. Deviation016.83
Alpha0-4.1
Beta01.15
Sharpe Ratio00.73
Treynor Ratio09.97

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

The SPDR S&P MIDCAP 400 ETF Trust (MDY) has a Treynor Ratio of 9.97 with a R-squared of 86.66 and a Mean Return of 1.08. Its Standard Deviation is 16.83 while MDY’s Beta is 1.15. Furthermore, the fund has a Alpha of -4.1 and a Sharpe Ratio of 0.73.

BNDX’s Mean Return is 1.08 points lower than that of MDY and its R-squared is 86.66 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than MDY. The Alpha and Beta of BNDX are 4.10 points higher and 1.15 points lower than MDY’s Alpha and Beta.

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Performance

Annual Returns

BNDX vs. MDY - Annual Returns

YearBNDXMDY
20204.6%13.51%
20197.88%25.86%
20182.94%-11.28%
20172.4%15.89%
20164.67%20.33%
20151.08%-2.4%
20148.83%9.42%
20130.0%33.08%
20120.0%17.58%
20110.0%-1.99%
20100.0%26.17%

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 MDY, returning 33.08% on an annual basis. The poorest year for MDY in the last ten years was 2018, with a yield of -11.28%. Most years the SPDR S&P MIDCAP 400 ETF Trust has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 13.51%, 15.89%, and 17.58% respectively.

Portfolio Growth

BNDX vs. MDY - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$13,6954.63%
MDY$10,000$18,87513.29%

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 MDY, the end total would have been $18,875. This equates to a $8,875 profit over 7 years and a compound annual growth rate (CAGR) of 13.29%.

BNDX’s CAGR is 8.66 percentage points lower than that of MDY and as a result, would have yielded $5,180 less on a $10,000 investment. Thus, BNDX performed worse than MDY by 8.66% annually.


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