The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Vanguard Large-Cap Index Fund ETF Shares (VV) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and VV is a Vanguard Large Blend fund. So, what’s the difference between BNDX and VV? And which fund is better?
The expense ratio of BNDX is 0.04 percentage points higher than VV’s (0.08% vs. 0.04%). BNDX is mostly comprised of A bonds while VV has a high exposure to the technology sector. Overall, BNDX has provided lower returns than VV over the past ten years.
In this article, we’ll compare BNDX vs. VV. We’ll look at portfolio growth and risk metrics, as well as at their performance and holdings. Moreover, I’ll also discuss BNDX’s and VV’s fund composition, industry exposure, and annual returns and examine how these affect their overall returns.
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Summary
| BNDX | VV | |
| Name | Vanguard Total International Bond Index Fund ETF Shares | Vanguard Large-Cap Index Fund ETF Shares |
| Category | N/A | Large Blend |
| Issuer | Vanguard | Vanguard |
| AUM | 116.41B | 37.65B |
| Avg. Return | 4.63% | 14.75% |
| Div. Yield | 0.94% | 1.26% |
| Expense Ratio | 0.08% | 0.04% |
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 Large-Cap Index Fund ETF Shares (VV) is a Large Blend fund that is issued by Vanguard. It currently has 37.65B total assets under management and has yielded an average annual return of 14.75% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.04%.
BNDX’s dividend yield is 0.32% lower than that of VV (0.94% vs. 1.26%). Also, BNDX yielded on average 10.12% less per year over the past decade (4.63% vs. 14.75%). The expense ratio of BNDX is 0.04 percentage points higher than VV’s (0.08% vs. 0.04%).
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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.
| VV Holdings | Weight |
| Apple Inc | 5.7% |
| Microsoft Corp | 5.35% |
| Amazon.com Inc | 3.87% |
| Facebook Inc Class A | 2.19% |
| Alphabet Inc Class A | 1.93% |
| Alphabet Inc Class C | 1.81% |
| Tesla Inc | 1.37% |
| Berkshire Hathaway Inc Class B | 1.3% |
| NVIDIA Corp | 1.24% |
| JPMorgan Chase & Co | 1.24% |
VV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.7%, 5.35%, 3.87%, 2.19%, and 1.93%.
Alphabet Inc Class C (1.81%), Tesla Inc (1.37%), and Berkshire Hathaway Inc Class B (1.3%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VV’s holdings at 1.24% and 1.24%.
Risk Analysis
| BNDX | VV | |
| Mean Return | 0 | 1.24 |
| R-squared | 0 | 99.86 |
| Std. Deviation | 0 | 13.75 |
| Alpha | 0 | -0.08 |
| Beta | 0 | 1.01 |
| Sharpe Ratio | 0 | 1.04 |
| Treynor Ratio | 0 | 14.14 |
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Standard Deviation of 0 with a Sharpe Ratio of 0 and a R-squared of 0. Its Beta is 0 while BNDX’s Mean Return is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Alpha of 0.
The Vanguard Large-Cap Index Fund ETF Shares (VV) has a Sharpe Ratio of 1.04 with a Mean Return of 1.24 and a Beta of 1.01. Its Treynor Ratio is 14.14 while VV’s Standard Deviation is 13.75. Furthermore, the fund has a R-squared of 99.86 and a Alpha of -0.08.
BNDX’s Mean Return is 1.24 points lower than that of VV and its R-squared is 99.86 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than VV. The Alpha and Beta of BNDX are 0.08 points higher and 1.01 points lower than VV’s Alpha and Beta.
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Performance
Annual Returns
| Year | BNDX | VV |
| 2020 | 4.6% | 20.99% |
| 2019 | 7.88% | 31.39% |
| 2018 | 2.94% | -4.44% |
| 2017 | 2.4% | 22.03% |
| 2016 | 4.67% | 11.65% |
| 2015 | 1.08% | 1.07% |
| 2014 | 8.83% | 13.39% |
| 2013 | 0.0% | 32.65% |
| 2012 | 0.0% | 16.09% |
| 2011 | 0.0% | 1.58% |
| 2010 | 0.0% | 15.81% |
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 VV, returning 32.65% on an annual basis. The poorest year for VV in the last ten years was 2018, with a yield of -4.44%. Most years the Vanguard Large-Cap Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.39%, 15.81%, and 16.09% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| BNDX | $10,000 | $13,695 | 4.63% |
| VV | $10,000 | $23,719 | 14.75% |
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 VV, the end total would have been $23,719. This equates to a $13,719 profit over 7 years and a compound annual growth rate (CAGR) of 14.75%.
BNDX’s CAGR is 10.12 percentage points lower than that of VV and as a result, would have yielded $10,024 less on a $10,000 investment. Thus, BNDX performed worse than VV by 10.12% annually.
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