Skip to content

BNDX vs. VOE: What’s The Difference?

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.

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

BNDXVOE
NameVanguard Total International Bond Index Fund ETF SharesVanguard Mid-Cap Value Index Fund ETF Shares
CategoryN/AMid-Cap Value
IssuerVanguardVanguard
AUM116.41B26.78B
Avg. Return4.63%12.52%
Div. Yield0.94%1.87%
Expense Ratio0.08%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%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

Fund Composition

Holdings

BNDX - Holdings

BNDX Bond SectorsWeight
A29.19%
AA26.79%
AAA21.59%
BBB19.41%
Others1.57%
Below B1.45%
B0.0%
BB0.0%
US Government0.0%

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

VOE HoldingsWeight
Carrier Global Corp Ordinary Shares1.28%
International Flavors & Fragrances Inc1.13%
Motorola Solutions Inc1.12%
Discover Financial Services1.09%
Welltower Inc1.05%
Corteva Inc0.99%
Valero Energy Corp0.97%
Corning Inc0.95%
Willis Towers Watson PLC0.9%
D.R. Horton Inc0.89%

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%.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

BNDXVOE
Mean Return01.05
R-squared088.76
Std. Deviation015.98
Alpha0-3.77
Beta01.11
Sharpe Ratio00.75
Treynor Ratio010.19

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.

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

BNDX vs. VOE - Annual Returns

YearBNDXVOE
20204.6%2.5%
20197.88%27.98%
20182.94%-12.41%
20172.4%17.05%
20164.67%15.26%
20151.08%-1.8%
20148.83%13.98%
20130.0%37.65%
20120.0%16.04%
20110.0%-0.32%
20100.0%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

BNDX vs. VOE - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
BNDX$10,000$13,6954.63%
VOE$10,000$17,35012.52%

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.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published.