The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the SPDR S&P Dividend ETF (SDY) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and SDY is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between BNDX and SDY? And which fund is better?
The expense ratio of BNDX is 0.27 percentage points lower than SDY’s (0.08% vs. 0.35%). BNDX is mostly comprised of A bonds while SDY has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than SDY over the past ten years.
In this article, we’ll compare BNDX vs. SDY. We’ll look at fund composition and industry exposure, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss BNDX’s and SDY’s holdings, performance, and portfolio growth and examine how these affect their overall returns.
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|Name||Vanguard Total International Bond Index Fund ETF Shares||SPDR S&P Dividend ETF|
|Issuer||Vanguard||SPDR State Street Global Advisors|
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 SPDR S&P Dividend ETF (SDY) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 19.67B total assets under management and has yielded an average annual return of 12.44% over the past 10 years. The fund has a dividend yield of 2.65% with an expense ratio of 0.35%.
BNDX’s dividend yield is 1.71% lower than that of SDY (0.94% vs. 2.65%). Also, BNDX yielded on average 7.81% less per year over the past decade (4.63% vs. 12.44%). The expense ratio of BNDX is 0.27 percentage points lower than SDY’s (0.08% vs. 0.35%).
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|BNDX Bond Sectors||Weight|
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.
|Exxon Mobil Corp||2.81%|
|South Jersey Industries Inc||2.22%|
|International Business Machines Corp||2.0%|
|National Retail Properties Inc||1.86%|
|Federal Realty Investment Trust||1.77%|
|Realty Income Corp||1.7%|
|Old Republic International Corp||1.65%|
SDY’s Top Holdings are Exxon Mobil Corp, AT&T Inc, South Jersey Industries Inc, Chevron Corp, and International Business Machines Corp at 2.81%, 2.5%, 2.22%, 2.02%, and 2.0%.
AbbVie Inc (1.93%), National Retail Properties Inc (1.86%), and Federal Realty Investment Trust (1.77%) have a slightly smaller but still significant weight. Realty Income Corp and Old Republic International Corp are also represented in the SDY’s holdings at 1.7% and 1.65%.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Sharpe Ratio of 0 with a Alpha of 0 and a Beta of 0. Its R-squared is 0 while BNDX’s Standard Deviation is 0. Furthermore, the fund has a Mean Return of 0 and a Treynor Ratio of 0.
The SPDR S&P Dividend ETF (SDY) has a Sharpe Ratio of 0.95 with a Alpha of -0.1 and a Mean Return of 1.07. Its Beta is 0.87 while SDY’s Treynor Ratio is 13.94. Furthermore, the fund has a Standard Deviation of 12.9 and a R-squared of 83.62.
BNDX’s Mean Return is 1.07 points lower than that of SDY and its R-squared is 83.62 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than SDY. The Alpha and Beta of BNDX are 0.10 points higher and 0.87 points lower than SDY’s Alpha and Beta.
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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 SDY, returning 30.09% on an annual basis. The poorest year for SDY in the last ten years was 2018, with a yield of -2.73%. Most years the SPDR S&P Dividend ETF has given investors modest returns, such as in 2012, 2014, and 2017, when gains were 11.51%, 13.8%, and 15.84% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 SDY, the end total would have been $19,213. This equates to a $9,213 profit over 7 years and a compound annual growth rate (CAGR) of 12.44%.
BNDX’s CAGR is 7.81 percentage points lower than that of SDY and as a result, would have yielded $5,518 less on a $10,000 investment. Thus, BNDX performed worse than SDY by 7.81% annually.
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