The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the iShares MSCI USA Value Factor ETF (VLUE) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and VLUE is a iShares Large Value fund. So, what’s the difference between BNDX and VLUE? And which fund is better?
The expense ratio of BNDX is 0.07 percentage points lower than VLUE’s (0.08% vs. 0.15%). BNDX is mostly comprised of A bonds while VLUE has a high exposure to the technology sector. Overall, BNDX has provided lower returns than VLUE over the past ten years.
In this article, we’ll compare BNDX vs. VLUE. We’ll look at portfolio growth and performance, as well as at their fund composition and annual returns. Moreover, I’ll also discuss BNDX’s and VLUE’s risk metrics, industry exposure, and holdings and examine how these affect their overall returns.
|Name||Vanguard Total International Bond Index Fund ETF Shares||iShares MSCI USA Value Factor ETF|
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 iShares MSCI USA Value Factor ETF (VLUE) is a Large Value fund that is issued by iShares. It currently has 15.95B total assets under management and has yielded an average annual return of 8.91% over the past 10 years. The fund has a dividend yield of 1.89% with an expense ratio of 0.15%.
BNDX’s dividend yield is 0.95% lower than that of VLUE (0.94% vs. 1.89%). Also, BNDX yielded on average 4.28% less per year over the past decade (4.63% vs. 8.91%). The expense ratio of BNDX is 0.07 percentage points lower than VLUE’s (0.08% vs. 0.15%).
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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.
|General Motors Co||3.19%|
|Micron Technology Inc||3.14%|
|Cisco Systems Inc||3.05%|
|International Business Machines Corp||2.76%|
|Ford Motor Co||2.23%|
VLUE’s Top Holdings are AT&T Inc, Intel Corp, General Motors Co, Micron Technology Inc, and Cisco Systems Inc at 7.13%, 6.14%, 3.19%, 3.14%, and 3.05%.
International Business Machines Corp (2.76%), Target Corp (2.38%), and Citigroup Inc (2.32%) have a slightly smaller but still significant weight. Ford Motor Co and Pfizer Inc are also represented in the VLUE’s holdings at 2.23% and 2.17%.
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The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a R-squared of 0 with a Standard Deviation of 0 and a Beta of 0. Its Alpha is 0 while BNDX’s Sharpe Ratio is 0. Furthermore, the fund has a Mean Return of 0 and a Treynor Ratio of 0.
The iShares MSCI USA Value Factor ETF (VLUE) has a Treynor Ratio of 0 with a Mean Return of 0 and a Sharpe Ratio of 0. Its Alpha is 0 while VLUE’s R-squared is 0. Furthermore, the fund has a Standard Deviation of 0 and a Beta of 0.
BNDX’s Mean Return is 0.00 points lower than that of VLUE and its R-squared is 0.00 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than VLUE. The Alpha and Beta of BNDX are 0.00 points lower and 0.00 points lower than VLUE’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 2019 was the strongest year for VLUE, returning 27.47% on an annual basis. The poorest year for VLUE in the last ten years was 2018, with a yield of -11.18%. Most years the iShares MSCI USA Value Factor ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% 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 VLUE, the end total would have been $17,247. This equates to a $7,247 profit over 7 years and a compound annual growth rate (CAGR) of 8.91%.
BNDX’s CAGR is 4.28 percentage points lower than that of VLUE and as a result, would have yielded $3,552 less on a $10,000 investment. Thus, BNDX performed worse than VLUE by 4.28% annually.
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