The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Schwab International Equity ETF (SCHF) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and SCHF is a Schwab ETFs Foreign Large Blend fund. So, what’s the difference between BNDX and SCHF? And which fund is better?
The expense ratio of BNDX is 0.02 percentage points higher than SCHF’s (0.08% vs. 0.06%). BNDX is mostly comprised of A bonds while SCHF has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than SCHF over the past ten years.
In this article, we’ll compare BNDX vs. SCHF. We’ll look at portfolio growth and performance, as well as at their annual returns and fund composition. Moreover, I’ll also discuss BNDX’s and SCHF’s industry exposure, risk metrics, and holdings and examine how these affect their overall returns.
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Summary
| BNDX | SCHF | |
| Name | Vanguard Total International Bond Index Fund ETF Shares | Schwab International Equity ETF |
| Category | N/A | Foreign Large Blend |
| Issuer | Vanguard | Schwab ETFs |
| AUM | 116.41B | 26.99B |
| Avg. Return | 4.63% | 6.43% |
| Div. Yield | 0.94% | 2.16% |
| Expense Ratio | 0.08% | 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 International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.
BNDX’s dividend yield is 1.22% lower than that of SCHF (0.94% vs. 2.16%). Also, BNDX yielded on average 1.80% less per year over the past decade (4.63% vs. 6.43%). The expense ratio of BNDX is 0.02 percentage points higher than SCHF’s (0.08% vs. 0.06%).
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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.
| SCHF Holdings | Weight |
| Nestle SA | 1.66% |
| Samsung Electronics Co Ltd | 1.6% |
| ASML Holding NV | 1.29% |
| Roche Holding AG | 1.24% |
| Toyota Motor Corp | 1.02% |
| LVMH Moet Hennessy Louis Vuitton SE | 0.93% |
| Novartis AG | 0.92% |
| Shopify Inc A | 0.78% |
| AstraZeneca PLC | 0.75% |
| SAP SE | 0.74% |
SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.
LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.
Risk Analysis
| BNDX | SCHF | |
| Mean Return | 0 | 0.58 |
| R-squared | 0 | 98.16 |
| Std. Deviation | 0 | 15.08 |
| Alpha | 0 | 0.53 |
| Beta | 0 | 0.99 |
| Sharpe Ratio | 0 | 0.42 |
| Treynor Ratio | 0 | 5.39 |
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Beta of 0 with a R-squared of 0 and a Alpha of 0. Its Treynor Ratio is 0 while BNDX’s Standard Deviation is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Mean Return of 0.
The Schwab International Equity ETF (SCHF) has a Sharpe Ratio of 0.42 with a Standard Deviation of 15.08 and a Treynor Ratio of 5.39. Its Beta is 0.99 while SCHF’s Mean Return is 0.58. Furthermore, the fund has a R-squared of 98.16 and a Alpha of 0.53.
BNDX’s Mean Return is 0.58 points lower than that of SCHF and its R-squared is 98.16 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than SCHF. The Alpha and Beta of BNDX are 0.53 points lower and 0.99 points lower than SCHF’s Alpha and Beta.
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Performance
Annual Returns
| Year | BNDX | SCHF |
| 2020 | 4.6% | 9.86% |
| 2019 | 7.88% | 22.15% |
| 2018 | 2.94% | -14.39% |
| 2017 | 2.4% | 25.83% |
| 2016 | 4.67% | 2.88% |
| 2015 | 1.08% | -2.44% |
| 2014 | 8.83% | -4.44% |
| 2013 | 0.0% | 20.03% |
| 2012 | 0.0% | 17.12% |
| 2011 | 0.0% | -12.32% |
| 2010 | 0.0% | 8.6% |
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 SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| BNDX | $10,000 | $13,695 | 4.63% |
| SCHF | $10,000 | $13,865 | 6.43% |
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 SCHF, the end total would have been $13,865. This equates to a $3,865 profit over 7 years and a compound annual growth rate (CAGR) of 6.43%.
BNDX’s CAGR is 1.80 percentage points lower than that of SCHF and as a result, would have yielded $170 less on a $10,000 investment. Thus, BNDX performed worse than SCHF by 1.80% annually.
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