The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Vanguard Small-Cap Value Index Fund ETF Shares (VBR) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and VBR is a Vanguard Small Value fund. So, what’s the difference between BNDX and VBR? And which fund is better?
The expense ratio of BNDX is 0.01 percentage points higher than VBR’s (0.08% vs. 0.07%). BNDX is mostly comprised of A bonds while VBR has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than VBR over the past ten years.
In this article, we’ll compare BNDX vs. VBR. We’ll look at holdings and risk metrics, as well as at their fund composition and industry exposure. Moreover, I’ll also discuss BNDX’s and VBR’s portfolio growth, performance, and annual returns and examine how these affect their overall returns.
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|Name||Vanguard Total International Bond Index Fund ETF Shares||Vanguard Small-Cap Value 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 Value Index Fund ETF Shares (VBR) is a Small Value fund that is issued by Vanguard. It currently has 48.08B total assets under management and has yielded an average annual return of 12.28% over the past 10 years. The fund has a dividend yield of 1.6% with an expense ratio of 0.07%.
BNDX’s dividend yield is 0.66% lower than that of VBR (0.94% vs. 1.6%). Also, BNDX yielded on average 7.65% less per year over the past decade (4.63% vs. 12.28%). The expense ratio of BNDX is 0.01 percentage points higher than VBR’s (0.08% vs. 0.07%).
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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.
|Diamondback Energy Inc||0.55%|
|VICI Properties Inc Ordinary Shares||0.54%|
|Nuance Communications Inc||0.5%|
|Molina Healthcare Inc||0.48%|
|Howmet Aerospace Inc||0.44%|
|Apollo Global Management Inc Class A||0.42%|
|Brown & Brown Inc||0.41%|
VBR’s Top Holdings are Diamondback Energy Inc, VICI Properties Inc Ordinary Shares, IDEX Corp, Nuance Communications Inc, and Molina Healthcare Inc at 0.55%, 0.54%, 0.54%, 0.5%, and 0.48%.
Signature Bank (0.46%), Novavax Inc (0.44%), and Howmet Aerospace Inc (0.44%) have a slightly smaller but still significant weight. Apollo Global Management Inc Class A and Brown & Brown Inc are also represented in the VBR’s holdings at 0.42% and 0.41%.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a R-squared of 0 with a Treynor Ratio of 0 and a Standard Deviation of 0. Its Mean Return is 0 while BNDX’s Sharpe Ratio is 0. Furthermore, the fund has a Beta of 0 and a Alpha of 0.
The Vanguard Small-Cap Value Index Fund ETF Shares (VBR) has a Alpha of -5.09 with a Standard Deviation of 18.37 and a R-squared of 82.2. Its Treynor Ratio is 9.15 while VBR’s Sharpe Ratio is 0.67. Furthermore, the fund has a Mean Return of 1.08 and a Beta of 1.23.
BNDX’s Mean Return is 1.08 points lower than that of VBR and its R-squared is 82.20 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than VBR. The Alpha and Beta of BNDX are 5.09 points higher and 1.23 points lower than VBR’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 VBR, returning 36.57% on an annual basis. The poorest year for VBR in the last ten years was 2018, with a yield of -12.22%. Most years the Vanguard Small-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2017, and 2012, when gains were 10.55%, 11.79%, and 18.78% 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 VBR, the end total would have been $16,765. This equates to a $6,765 profit over 7 years and a compound annual growth rate (CAGR) of 12.28%.
BNDX’s CAGR is 7.65 percentage points lower than that of VBR and as a result, would have yielded $3,070 less on a $10,000 investment. Thus, BNDX performed worse than VBR by 7.65% annually.
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