The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and VBK is a Vanguard Small Growth fund. So, what’s the difference between BNDX and VBK? And which fund is better?
The expense ratio of BNDX is 0.01 percentage points higher than VBK’s (0.08% vs. 0.07%). BNDX is mostly comprised of A bonds while VBK has a high exposure to the technology sector. Overall, BNDX has provided lower returns than VBK over the past ten years.
In this article, we’ll compare BNDX vs. VBK. We’ll look at annual returns and holdings, as well as at their risk metrics and performance. Moreover, I’ll also discuss BNDX’s and VBK’s portfolio growth, industry exposure, and fund composition and examine how these affect their overall returns.
|Name||Vanguard Total International Bond Index Fund ETF Shares||Vanguard Small-Cap Growth Index Fund ETF Shares|
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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) is a Small Growth fund that is issued by Vanguard. It currently has 37.89B total assets under management and has yielded an average annual return of 16.53% over the past 10 years. The fund has a dividend yield of 0.45% with an expense ratio of 0.07%.
BNDX’s dividend yield is 0.49% higher than that of VBK (0.94% vs. 0.45%). Also, BNDX yielded on average 11.90% less per year over the past decade (4.63% vs. 16.53%). The expense ratio of BNDX is 0.01 percentage points higher than VBK’s (0.08% vs. 0.07%).
|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.
|Charles River Laboratories International Inc||0.78%|
|Fair Isaac Corp||0.57%|
|Bill.com Holdings Inc Ordinary Shares||0.56%|
VBK’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.78%, 0.73%, 0.73%, 0.73%, and 0.72%.
Entegris Inc (0.7%), PTC Inc (0.62%), and Fair Isaac Corp (0.57%) have a slightly smaller but still significant weight. Bill.com Holdings Inc Ordinary Shares and Avalara Inc are also represented in the VBK’s holdings at 0.56% and 0.55%.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a R-squared of 0 with a Beta of 0 and a Sharpe Ratio of 0. Its Treynor Ratio is 0 while BNDX’s Alpha is 0. Furthermore, the fund has a Standard Deviation of 0 and a Mean Return of 0.
The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has a R-squared of 80.56 with a Mean Return of 1.22 and a Standard Deviation of 17.95. Its Treynor Ratio is 11.18 while VBK’s Sharpe Ratio is 0.78. Furthermore, the fund has a Alpha of -2.81 and a Beta of 1.18.
BNDX’s Mean Return is 1.22 points lower than that of VBK and its R-squared is 80.56 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than VBK. The Alpha and Beta of BNDX are 2.81 points higher and 1.18 points lower than VBK’s Alpha and Beta.
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 VBK, returning 38.18% on an annual basis. The poorest year for VBK in the last ten years was 2018, with a yield of -5.68%. Most years the Vanguard Small-Cap Growth Index Fund ETF Shares has given investors modest returns, such as in 2016, 2012, and 2017, when gains were 10.74%, 17.67%, and 21.9% 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 VBK, the end total would have been $23,189. This equates to a $13,189 profit over 7 years and a compound annual growth rate (CAGR) of 16.53%.
BNDX’s CAGR is 11.90 percentage points lower than that of VBK and as a result, would have yielded $9,494 less on a $10,000 investment. Thus, BNDX performed worse than VBK by 11.90% annually.
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