BNDX vs. SCHG: What’s The Difference?

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

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

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

Summary

BNDX SCHG
Name Vanguard Total International Bond Index Fund ETF Shares Schwab U.S. Large-Cap Growth ETF
Category N/A Large Growth
Issuer Vanguard Schwab ETFs
AUM 116.41B 15.16B
Avg. Return 4.63% 17.81%
Div. Yield 0.94% 0.43%
Expense Ratio 0.08% 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. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% with an expense ratio of 0.04%.

BNDX’s dividend yield is 0.51% higher than that of SCHG (0.94% vs. 0.43%). Also, BNDX yielded on average 13.18% less per year over the past decade (4.63% vs. 17.81%). The expense ratio of BNDX is 0.04 percentage points higher than SCHG’s (0.08% vs. 0.04%).

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.

SCHG - Holdings

SCHG Holdings Weight
Apple Inc 11.49%
Microsoft Corp 10.91%
Amazon.com Inc 7.89%
Facebook Inc A 4.45%
Alphabet Inc A 3.93%
Alphabet Inc Class C 3.82%
Tesla Inc 2.8%
NVIDIA Corp 2.67%
Visa Inc Class A 2.12%
UnitedHealth Group Inc 2.02%

SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.

Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.

Risk Analysis

BNDX SCHG
Mean Return 0 1.46
R-squared 0 92.92
Std. Deviation 0 14.78
Alpha 0 1.97
Beta 0 1.05
Sharpe Ratio 0 1.14
Treynor Ratio 0 16.3

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

The Schwab U.S. Large-Cap Growth ETF (SCHG) has a Treynor Ratio of 16.3 with a Standard Deviation of 14.78 and a R-squared of 92.92. Its Mean Return is 1.46 while SCHG’s Beta is 1.05. Furthermore, the fund has a Sharpe Ratio of 1.14 and a Alpha of 1.97.

BNDX’s Mean Return is 1.46 points lower than that of SCHG and its R-squared is 92.92 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than SCHG. The Alpha and Beta of BNDX are 1.97 points lower and 1.05 points lower than SCHG’s Alpha and Beta.

Performance

Annual Returns

BNDX vs. SCHG - Annual Returns

Year BNDX SCHG
2020 4.6% 39.13%
2019 7.88% 36.21%
2018 2.94% -1.35%
2017 2.4% 28.04%
2016 4.67% 6.76%
2015 1.08% 3.26%
2014 8.83% 15.74%
2013 0.0% 33.96%
2012 0.0% 17.02%
2011 0.0% -0.67%
2010 0.0% 16.83%

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 2020 was the strongest year for SCHG, returning 39.13% on an annual basis. The poorest year for SCHG in the last ten years was 2018, with a yield of -1.35%. Most years the Schwab U.S. Large-Cap Growth ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 15.74%, 16.83%, and 17.02% respectively.

Portfolio Growth

BNDX vs. SCHG - Portfolio Growth

Fund Initial Balance Final Balance CAGR
BNDX $10,000 $13,695 4.63%
SCHG $10,000 $30,541 17.81%

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 SCHG, the end total would have been $30,541. This equates to a $20,541 profit over 7 years and a compound annual growth rate (CAGR) of 17.81%.

BNDX’s CAGR is 13.18 percentage points lower than that of SCHG and as a result, would have yielded $16,846 less on a $10,000 investment. Thus, BNDX performed worse than SCHG by 13.18% annually.


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