BNDX vs. MTUM: What’s The Difference?

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the iShares MSCI USA Momentum Factor ETF (MTUM) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and MTUM is a iShares Large Growth fund. So, what’s the difference between BNDX and MTUM? And which fund is better?

The expense ratio of BNDX is 0.07 percentage points lower than MTUM’s (0.08% vs. 0.15%). BNDX is mostly comprised of A bonds while MTUM has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than MTUM over the past ten years.

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

Summary

BNDX MTUM
Name Vanguard Total International Bond Index Fund ETF Shares iShares MSCI USA Momentum Factor ETF
Category N/A Large Growth
Issuer Vanguard iShares
AUM 116.41B 14.53B
Avg. Return 4.63% 17.37%
Div. Yield 0.94% 0.44%
Expense Ratio 0.08% 0.15%

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 MSCI USA Momentum Factor ETF (MTUM) is a Large Growth fund that is issued by iShares. It currently has 14.53B total assets under management and has yielded an average annual return of 17.37% over the past 10 years. The fund has a dividend yield of 0.44% with an expense ratio of 0.15%.

BNDX’s dividend yield is 0.50% higher than that of MTUM (0.94% vs. 0.44%). Also, BNDX yielded on average 12.74% less per year over the past decade (4.63% vs. 17.37%). The expense ratio of BNDX is 0.07 percentage points lower than MTUM’s (0.08% vs. 0.15%).

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.

MTUM - Holdings

MTUM Holdings Weight
Tesla Inc 5.63%
The Walt Disney Co 4.39%
JPMorgan Chase & Co 4.35%
Berkshire Hathaway Inc Class B 4.34%
Bank of America Corp 3.81%
PayPal Holdings Inc 3.76%
Wells Fargo & Co 3.05%
Applied Materials Inc 3.05%
Moderna Inc 2.89%
Alphabet Inc Class C 2.84%

MTUM’s Top Holdings are Tesla Inc, The Walt Disney Co, JPMorgan Chase & Co, Berkshire Hathaway Inc Class B, and Bank of America Corp at 5.63%, 4.39%, 4.35%, 4.34%, and 3.81%.

PayPal Holdings Inc (3.76%), Wells Fargo & Co (3.05%), and Applied Materials Inc (3.05%) have a slightly smaller but still significant weight. Moderna Inc and Alphabet Inc Class C are also represented in the MTUM’s holdings at 2.89% and 2.84%.

Risk Analysis

BNDX MTUM
Mean Return 0 0
R-squared 0 0
Std. Deviation 0 0
Alpha 0 0
Beta 0 0
Sharpe Ratio 0 0
Treynor Ratio 0 0

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

The iShares MSCI USA Momentum Factor ETF (MTUM) has a Mean Return of 0 with a R-squared of 0 and a Alpha of 0. Its Beta is 0 while MTUM’s Standard Deviation is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Sharpe Ratio of 0.

BNDX’s Mean Return is 0.00 points lower than that of MTUM and its R-squared is 0.00 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than MTUM. The Alpha and Beta of BNDX are 0.00 points lower and 0.00 points lower than MTUM’s Alpha and Beta.

Performance

Annual Returns

BNDX vs. MTUM - Annual Returns

Year BNDX MTUM
2020 4.6% 29.69%
2019 7.88% 27.57%
2018 2.94% -1.77%
2017 2.4% 37.6%
2016 4.67% 4.89%
2015 1.08% 9.12%
2014 8.83% 14.48%
2013 0.0% 0.0%
2012 0.0% 0.0%
2011 0.0% 0.0%
2010 0.0% 0.0%

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 2017 was the strongest year for MTUM, returning 37.6% on an annual basis. The poorest year for MTUM in the last ten years was 2018, with a yield of -1.77%. Most years the iShares MSCI USA Momentum Factor ETF has given investors modest returns, such as in 2010, 2016, and 2015, when gains were 0.0%, 4.89%, and 9.12% respectively.

Portfolio Growth

BNDX vs. MTUM - Portfolio Growth

Fund Initial Balance Final Balance CAGR
BNDX $10,000 $13,695 4.63%
MTUM $10,000 $29,301 17.37%

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 MTUM, the end total would have been $29,301. This equates to a $19,301 profit over 7 years and a compound annual growth rate (CAGR) of 17.37%.

BNDX’s CAGR is 12.74 percentage points lower than that of MTUM and as a result, would have yielded $15,606 less on a $10,000 investment. Thus, BNDX performed worse than MTUM by 12.74% annually.


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