The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Invesco S&P 500 Equal Weight ETF (RSP) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and RSP is a Invesco Large Blend fund. So, what’s the difference between BNDX and RSP? And which fund is better?
The expense ratio of BNDX is 0.12 percentage points lower than RSP’s (0.08% vs. 0.2%). BNDX is mostly comprised of A bonds while RSP has a high exposure to the technology sector. Overall, BNDX has provided lower returns than RSP over the past ten years.
In this article, we’ll compare BNDX vs. RSP. We’ll look at risk metrics and industry exposure, as well as at their holdings and fund composition. Moreover, I’ll also discuss BNDX’s and RSP’s performance, annual returns, and portfolio growth and examine how these affect their overall returns.
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Summary
| BNDX | RSP | |
| Name | Vanguard Total International Bond Index Fund ETF Shares | Invesco S&P 500 Equal Weight ETF |
| Category | N/A | Large Blend |
| Issuer | Vanguard | Invesco |
| AUM | 116.41B | 28.62B |
| Avg. Return | 4.63% | 13.79% |
| Div. Yield | 0.94% | 1.31% |
| Expense Ratio | 0.08% | 0.2% |
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 Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% with an expense ratio of 0.2%.
BNDX’s dividend yield is 0.37% lower than that of RSP (0.94% vs. 1.31%). Also, BNDX yielded on average 9.16% less per year over the past decade (4.63% vs. 13.79%). The expense ratio of BNDX is 0.12 percentage points lower than RSP’s (0.08% vs. 0.2%).
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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.
| RSP Holdings | Weight |
| Chipotle Mexican Grill Inc | 0.27% |
| Nike Inc Class B | 0.25% |
| MSCI Inc | 0.25% |
| Monolithic Power Systems Inc | 0.25% |
| Enphase Energy Inc | 0.25% |
| Advanced Micro Devices Inc | 0.25% |
| ResMed Inc | 0.24% |
| PerkinElmer Inc | 0.24% |
| IDEXX Laboratories Inc | 0.24% |
| Danaher Corp | 0.24% |
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
Risk Analysis
| BNDX | RSP | |
| Mean Return | 0 | 1.19 |
| R-squared | 0 | 94.47 |
| Std. Deviation | 0 | 15.36 |
| Alpha | 0 | -2.45 |
| Beta | 0 | 1.1 |
| Sharpe Ratio | 0 | 0.89 |
| Treynor Ratio | 0 | 12.12 |
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Treynor Ratio of 0 with a R-squared of 0 and a Sharpe Ratio of 0. Its Beta is 0 while BNDX’s Standard Deviation is 0. Furthermore, the fund has a Alpha of 0 and a Mean Return of 0.
The Invesco S&P 500 Equal Weight ETF (RSP) has a Mean Return of 1.19 with a Alpha of -2.45 and a Treynor Ratio of 12.12. Its Beta is 1.1 while RSP’s Sharpe Ratio is 0.89. Furthermore, the fund has a R-squared of 94.47 and a Standard Deviation of 15.36.
BNDX’s Mean Return is 1.19 points lower than that of RSP and its R-squared is 94.47 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than RSP. The Alpha and Beta of BNDX are 2.45 points higher and 1.10 points lower than RSP’s Alpha and Beta.
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Performance
Annual Returns
| Year | BNDX | RSP |
| 2020 | 4.6% | 12.75% |
| 2019 | 7.88% | 28.94% |
| 2018 | 2.94% | -7.77% |
| 2017 | 2.4% | 18.52% |
| 2016 | 4.67% | 14.34% |
| 2015 | 1.08% | -2.57% |
| 2014 | 8.83% | 14.02% |
| 2013 | 0.0% | 35.6% |
| 2012 | 0.0% | 17.04% |
| 2011 | 0.0% | -0.5% |
| 2010 | 0.0% | 21.3% |
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 RSP, returning 35.6% on an annual basis. The poorest year for RSP in the last ten years was 2018, with a yield of -7.77%. Most years the Invesco S&P 500 Equal Weight ETF has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 14.02%, 14.34%, and 17.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| BNDX | $10,000 | $13,695 | 4.63% |
| RSP | $10,000 | $20,185 | 13.79% |
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 RSP, the end total would have been $20,185. This equates to a $10,185 profit over 7 years and a compound annual growth rate (CAGR) of 13.79%.
BNDX’s CAGR is 9.16 percentage points lower than that of RSP and as a result, would have yielded $6,490 less on a $10,000 investment. Thus, BNDX performed worse than RSP by 9.16% annually.
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