The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between BNDX and VOE? And which fund is better?
The expense ratio of BNDX is 0.01 percentage points higher than VOE’s (0.08% vs. 0.07%). BNDX is mostly comprised of A bonds while VOE has a high exposure to the financial services sector. Overall, BNDX has provided lower returns than VOE over the past ten years.
In this article, we’ll compare BNDX vs. VOE. We’ll look at industry exposure and portfolio growth, as well as at their risk metrics and fund composition. Moreover, I’ll also discuss BNDX’s and VOE’s annual returns, holdings, and performance and examine how these affect their overall returns.
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Summary
| BNDX | VOE | |
| Name | Vanguard Total International Bond Index Fund ETF Shares | Vanguard Mid-Cap Value Index Fund ETF Shares |
| Category | N/A | Mid-Cap Value |
| Issuer | Vanguard | Vanguard |
| AUM | 116.41B | 26.78B |
| Avg. Return | 4.63% | 12.52% |
| Div. Yield | 0.94% | 1.87% |
| Expense Ratio | 0.08% | 0.07% |
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 Mid-Cap Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.
BNDX’s dividend yield is 0.93% lower than that of VOE (0.94% vs. 1.87%). Also, BNDX yielded on average 7.90% less per year over the past decade (4.63% vs. 12.52%). The expense ratio of BNDX is 0.01 percentage points higher than VOE’s (0.08% vs. 0.07%).
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Fund Composition
Holdings
| BNDX Bond Sectors | Weight |
| A | 29.19% |
| AA | 26.79% |
| AAA | 21.59% |
| BBB | 19.41% |
| Others | 1.57% |
| Below B | 1.45% |
| B | 0.0% |
| BB | 0.0% |
| US Government | 0.0% |
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.
| VOE Holdings | Weight |
| Carrier Global Corp Ordinary Shares | 1.28% |
| International Flavors & Fragrances Inc | 1.13% |
| Motorola Solutions Inc | 1.12% |
| Discover Financial Services | 1.09% |
| Welltower Inc | 1.05% |
| Corteva Inc | 0.99% |
| Valero Energy Corp | 0.97% |
| Corning Inc | 0.95% |
| Willis Towers Watson PLC | 0.9% |
| D.R. Horton Inc | 0.89% |
VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.
Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.
Risk Analysis
| BNDX | VOE | |
| Mean Return | 0 | 1.05 |
| R-squared | 0 | 88.76 |
| Std. Deviation | 0 | 15.98 |
| Alpha | 0 | -3.77 |
| Beta | 0 | 1.11 |
| Sharpe Ratio | 0 | 0.75 |
| Treynor Ratio | 0 | 10.19 |
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Alpha of 0 with a R-squared of 0 and a Beta of 0. Its Mean Return is 0 while BNDX’s Standard Deviation is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Sharpe Ratio of 0.
The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a Alpha of -3.77 with a R-squared of 88.76 and a Standard Deviation of 15.98. Its Beta is 1.11 while VOE’s Sharpe Ratio is 0.75. Furthermore, the fund has a Mean Return of 1.05 and a Treynor Ratio of 10.19.
BNDX’s Mean Return is 1.05 points lower than that of VOE and its R-squared is 88.76 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than VOE. The Alpha and Beta of BNDX are 3.77 points higher and 1.11 points lower than VOE’s Alpha and Beta.
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Performance
Annual Returns
| Year | BNDX | VOE |
| 2020 | 4.6% | 2.5% |
| 2019 | 7.88% | 27.98% |
| 2018 | 2.94% | -12.41% |
| 2017 | 2.4% | 17.05% |
| 2016 | 4.67% | 15.26% |
| 2015 | 1.08% | -1.8% |
| 2014 | 8.83% | 13.98% |
| 2013 | 0.0% | 37.65% |
| 2012 | 0.0% | 16.04% |
| 2011 | 0.0% | -0.32% |
| 2010 | 0.0% | 21.83% |
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 VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| BNDX | $10,000 | $13,695 | 4.63% |
| VOE | $10,000 | $17,350 | 12.52% |
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 VOE, the end total would have been $17,350. This equates to a $7,350 profit over 7 years and a compound annual growth rate (CAGR) of 12.52%.
BNDX’s CAGR is 7.90 percentage points lower than that of VOE and as a result, would have yielded $3,655 less on a $10,000 investment. Thus, BNDX performed worse than VOE by 7.90% annually.
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