Skip to content

BNDX vs. SCHX: What’s The Difference?

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

The expense ratio of BNDX is 0.05 percentage points higher than SCHX’s (0.08% vs. 0.03%). BNDX is mostly comprised of A bonds while SCHX has a high exposure to the technology sector. Overall, BNDX has provided lower returns than SCHX over the past ten years.

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

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

BNDXSCHX
NameVanguard Total International Bond Index Fund ETF SharesSchwab U.S. Large-Cap ETF
CategoryN/ALarge Blend
IssuerVanguardSchwab ETFs
AUM116.41B30.89B
Avg. Return4.63%14.60%
Div. Yield0.94%1.41%
Expense Ratio0.08%0.03%

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 ETF (SCHX) is a Large Blend fund that is issued by Schwab ETFs. It currently has 30.89B total assets under management and has yielded an average annual return of 14.60% over the past 10 years. The fund has a dividend yield of 1.41% with an expense ratio of 0.03%.

BNDX’s dividend yield is 0.47% lower than that of SCHX (0.94% vs. 1.41%). Also, BNDX yielded on average 9.97% less per year over the past decade (4.63% vs. 14.60%). The expense ratio of BNDX is 0.05 percentage points higher than SCHX’s (0.08% vs. 0.03%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

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.

SCHX - Holdings

SCHX HoldingsWeight
Apple Inc5.37%
Microsoft Corp5.1%
Amazon.com Inc3.69%
Facebook Inc A2.08%
Alphabet Inc A1.84%
Alphabet Inc Class C1.78%
Berkshire Hathaway Inc Class B1.32%
Tesla Inc1.31%
NVIDIA Corp1.25%
JPMorgan Chase & Co1.18%

SCHX’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.37%, 5.1%, 3.69%, 2.08%, and 1.84%.

Alphabet Inc Class C (1.78%), Berkshire Hathaway Inc Class B (1.32%), and Tesla Inc (1.31%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SCHX’s holdings at 1.25% and 1.18%.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

BNDXSCHX
Mean Return01.24
R-squared099.83
Std. Deviation013.8
Alpha0-0.14
Beta01.02
Sharpe Ratio01.03
Treynor Ratio014.06

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

The Schwab U.S. Large-Cap ETF (SCHX) has a Standard Deviation of 13.8 with a Mean Return of 1.24 and a Beta of 1.02. Its Treynor Ratio is 14.06 while SCHX’s Alpha is -0.14. Furthermore, the fund has a Sharpe Ratio of 1.03 and a R-squared of 99.83.

BNDX’s Mean Return is 1.24 points lower than that of SCHX and its R-squared is 99.83 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than SCHX. The Alpha and Beta of BNDX are 0.14 points higher and 1.02 points lower than SCHX’s Alpha and Beta.

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

BNDX vs. SCHX - Annual Returns

YearBNDXSCHX
20204.6%20.9%
20197.88%31.4%
20182.94%-4.52%
20172.4%21.91%
20164.67%11.78%
20151.08%1.02%
20148.83%13.33%
20130.0%32.54%
20120.0%16.06%
20110.0%1.61%
20100.0%15.88%

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 SCHX, returning 32.54% on an annual basis. The poorest year for SCHX in the last ten years was 2018, with a yield of -4.52%. Most years the Schwab U.S. Large-Cap ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.33%, 15.88%, and 16.06% respectively.

Portfolio Growth

BNDX vs. SCHX - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$13,6954.63%
SCHX$10,000$23,66414.60%

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 SCHX, the end total would have been $23,664. This equates to a $13,664 profit over 7 years and a compound annual growth rate (CAGR) of 14.60%.

BNDX’s CAGR is 9.97 percentage points lower than that of SCHX and as a result, would have yielded $9,969 less on a $10,000 investment. Thus, BNDX performed worse than SCHX by 9.97% annually.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published.