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BNDX vs. SCHD: What’s The Difference?

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

The expense ratio of BNDX is 0.02 percentage points higher than SCHD’s (0.08% vs. 0.06%). BNDX is mostly comprised of A bonds while SCHD has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than SCHD over the past ten years.

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

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Summary

BNDXSCHD
NameVanguard Total International Bond Index Fund ETF SharesSchwab U.S. Dividend Equity ETF
CategoryN/ALarge Value
IssuerVanguardSchwab ETFs
AUM116.41B26B
Avg. Return4.63%14.80%
Div. Yield0.94%2.89%
Expense Ratio0.08%0.06%

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. Dividend Equity ETF (SCHD) is a Large Value fund that is issued by Schwab ETFs. It currently has 26B total assets under management and has yielded an average annual return of 14.80% over the past 10 years. The fund has a dividend yield of 2.89% with an expense ratio of 0.06%.

BNDX’s dividend yield is 1.95% lower than that of SCHD (0.94% vs. 2.89%). Also, BNDX yielded on average 10.17% less per year over the past decade (4.63% vs. 14.80%). The expense ratio of BNDX is 0.02 percentage points higher than SCHD’s (0.08% vs. 0.06%).

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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.

SCHD - Holdings

SCHD HoldingsWeight
Merck & Co Inc4.24%
The Home Depot Inc4.19%
Texas Instruments Inc4.16%
Broadcom Inc4.15%
Amgen Inc4.11%
PepsiCo Inc4.09%
BlackRock Inc4.05%
Pfizer Inc3.97%
Verizon Communications Inc3.96%
Cisco Systems Inc3.96%

SCHD’s Top Holdings are Merck & Co Inc, The Home Depot Inc, Texas Instruments Inc, Broadcom Inc, and Amgen Inc at 4.24%, 4.19%, 4.16%, 4.15%, and 4.11%.

PepsiCo Inc (4.09%), BlackRock Inc (4.05%), and Pfizer Inc (3.97%) have a slightly smaller but still significant weight. Verizon Communications Inc and Cisco Systems Inc are also represented in the SCHD’s holdings at 3.96% and 3.96%.

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Risk Analysis

BNDXSCHD
Mean Return00
R-squared00
Std. Deviation00
Alpha00
Beta00
Sharpe Ratio00
Treynor Ratio00

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

The Schwab U.S. Dividend Equity ETF (SCHD) has a Mean Return of 0 with a Treynor Ratio of 0 and a Beta of 0. Its Alpha is 0 while SCHD’s Standard Deviation is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a R-squared of 0.

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

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Performance

Annual Returns

BNDX vs. SCHD - Annual Returns

YearBNDXSCHD
20204.6%15.11%
20197.88%27.28%
20182.94%-5.46%
20172.4%20.88%
20164.67%16.25%
20151.08%-0.21%
20148.83%11.66%
20130.0%32.9%
20120.0%11.4%
20110.0%0.0%
20100.0%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 2013 was the strongest year for SCHD, returning 32.9% on an annual basis. The poorest year for SCHD in the last ten years was 2018, with a yield of -5.46%. Most years the Schwab U.S. Dividend Equity ETF has given investors modest returns, such as in 2012, 2014, and 2020, when gains were 11.4%, 11.66%, and 15.11% respectively.

Portfolio Growth

BNDX vs. SCHD - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$13,6954.63%
SCHD$10,000$21,68814.80%

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 SCHD, the end total would have been $21,688. This equates to a $11,688 profit over 7 years and a compound annual growth rate (CAGR) of 14.80%.

BNDX’s CAGR is 10.17 percentage points lower than that of SCHD and as a result, would have yielded $7,993 less on a $10,000 investment. Thus, BNDX performed worse than SCHD by 10.17% annually.


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