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BNDX vs. SCHA: What’s The Difference?

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

The expense ratio of BNDX is 0.04 percentage points higher than SCHA’s (0.08% vs. 0.04%). BNDX is mostly comprised of A bonds while SCHA has a high exposure to the healthcare sector. Overall, BNDX has provided lower returns than SCHA over the past ten years.

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

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Summary

BNDXSCHA
NameVanguard Total International Bond Index Fund ETF SharesSchwab U.S. Small-Cap ETF
CategoryN/ASmall Blend
IssuerVanguardSchwab ETFs
AUM116.41B16.51B
Avg. Return4.63%12.62%
Div. Yield0.94%0.98%
Expense Ratio0.08%0.04%

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 Schwab U.S. Small-Cap ETF (SCHA) is a Small Blend fund that is issued by Schwab ETFs. It currently has 16.51B total assets under management and has yielded an average annual return of 12.62% over the past 10 years. The fund has a dividend yield of 0.98% with an expense ratio of 0.04%.

BNDX’s dividend yield is 0.04% lower than that of SCHA (0.94% vs. 0.98%). Also, BNDX yielded on average 7.99% less per year over the past decade (4.63% vs. 12.62%). The expense ratio of BNDX is 0.04 percentage points higher than SCHA’s (0.08% vs. 0.04%).

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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.

SCHA - Holdings

SCHA HoldingsWeight
AMC Entertainment Holdings Inc Class A0.67%
Caesars Entertainment Inc0.51%
Cloudflare Inc0.48%
NovoCure Ltd0.45%
Plug Power Inc0.41%
10x Genomics Inc Ordinary Shares – Class A0.34%
GameStop Corp Class A0.28%
RH0.27%
Penn National Gaming Inc0.27%
Axon Enterprise Inc0.27%

SCHA’s Top Holdings are AMC Entertainment Holdings Inc Class A, Caesars Entertainment Inc, Cloudflare Inc, NovoCure Ltd, and Plug Power Inc at 0.67%, 0.51%, 0.48%, 0.45%, and 0.41%.

10x Genomics Inc Ordinary Shares – Class A (0.34%), GameStop Corp Class A (0.28%), and RH (0.27%) have a slightly smaller but still significant weight. Penn National Gaming Inc and Axon Enterprise Inc are also represented in the SCHA’s holdings at 0.27% and 0.27%.

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Risk Analysis

BNDXSCHA
Mean Return01.14
R-squared082.26
Std. Deviation018.68
Alpha0-4.65
Beta01.25
Sharpe Ratio00.7
Treynor Ratio09.62

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

The Schwab U.S. Small-Cap ETF (SCHA) has a Beta of 1.25 with a Mean Return of 1.14 and a R-squared of 82.26. Its Treynor Ratio is 9.62 while SCHA’s Standard Deviation is 18.68. Furthermore, the fund has a Alpha of -4.65 and a Sharpe Ratio of 0.7.

BNDX’s Mean Return is 1.14 points lower than that of SCHA and its R-squared is 82.26 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than SCHA. The Alpha and Beta of BNDX are 4.65 points higher and 1.25 points lower than SCHA’s Alpha and Beta.

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Performance

Annual Returns

BNDX vs. SCHA - Annual Returns

YearBNDXSCHA
20204.6%19.35%
20197.88%26.54%
20182.94%-11.75%
20172.4%15.04%
20164.67%19.88%
20151.08%-4.24%
20148.83%6.53%
20130.0%39.59%
20120.0%18.24%
20110.0%-2.95%
20100.0%28.31%

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 SCHA, returning 39.59% on an annual basis. The poorest year for SCHA in the last ten years was 2018, with a yield of -11.75%. Most years the Schwab U.S. Small-Cap ETF has given investors modest returns, such as in 2017, 2012, and 2020, when gains were 15.04%, 18.24%, and 19.35% respectively.

Portfolio Growth

BNDX vs. SCHA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$13,6954.63%
SCHA$10,000$18,75012.62%

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 SCHA, the end total would have been $18,750. This equates to a $8,750 profit over 7 years and a compound annual growth rate (CAGR) of 12.62%.

BNDX’s CAGR is 7.99 percentage points lower than that of SCHA and as a result, would have yielded $5,055 less on a $10,000 investment. Thus, BNDX performed worse than SCHA by 7.99% annually.


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