BNDX vs. VXF: What’s The Difference?

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) and the Vanguard Extended Market Index Fund ETF Shares (VXF) are both among the Top 100 ETFs. BNDX is a Vanguard N/A fund and VXF is a Vanguard Mid-Cap Growth fund. So, what’s the difference between BNDX and VXF? And which fund is better?

The expense ratio of BNDX is 0.02 percentage points higher than VXF’s (0.08% vs. 0.06%). BNDX is mostly comprised of A bonds while VXF has a high exposure to the technology sector. Overall, BNDX has provided lower returns than VXF over the past ten years.

In this article, we’ll compare BNDX vs. VXF. We’ll look at holdings and performance, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss BNDX’s and VXF’s industry exposure, fund composition, and portfolio growth and examine how these affect their overall returns.

Summary

BNDX VXF
Name Vanguard Total International Bond Index Fund ETF Shares Vanguard Extended Market Index Fund ETF Shares
Category N/A Mid-Cap Growth
Issuer Vanguard Vanguard
AUM 116.41B 114.53B
Avg. Return 4.63% 15.47%
Div. Yield 0.94% 1.19%
Expense Ratio 0.08% 0.06%

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 Extended Market Index Fund ETF Shares (VXF) is a Mid-Cap Growth fund that is issued by Vanguard. It currently has 114.53B total assets under management and has yielded an average annual return of 15.47% over the past 10 years. The fund has a dividend yield of 1.19% with an expense ratio of 0.06%.

BNDX’s dividend yield is 0.25% lower than that of VXF (0.94% vs. 1.19%). Also, BNDX yielded on average 10.84% less per year over the past decade (4.63% vs. 15.47%). The expense ratio of BNDX is 0.02 percentage points higher than VXF’s (0.08% vs. 0.06%).

Fund Composition

Holdings

BNDX - 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.

VXF - Holdings

VXF Holdings Weight
Square Inc A 1.2%
Zoom Video Communications Inc 1.04%
Uber Technologies Inc 0.93%
Moderna Inc 0.9%
Blackstone Group Inc 0.83%
Snap Inc Class A 0.8%
Twilio Inc A 0.73%
DocuSign Inc 0.68%
CrowdStrike Holdings Inc Class A 0.63%
Marvell Technology Inc 0.6%

VXF’s Top Holdings are Square Inc A, Zoom Video Communications Inc, Uber Technologies Inc, Moderna Inc, and Blackstone Group Inc at 1.2%, 1.04%, 0.93%, 0.9%, and 0.83%.

Snap Inc Class A (0.8%), Twilio Inc A (0.73%), and DocuSign Inc (0.68%) have a slightly smaller but still significant weight. CrowdStrike Holdings Inc Class A and Marvell Technology Inc are also represented in the VXF’s holdings at 0.63% and 0.6%.

Risk Analysis

BNDX VXF
Mean Return 0 1.24
R-squared 0 85.73
Std. Deviation 0 18.04
Alpha 0 -3.26
Beta 0 1.23
Sharpe Ratio 0 0.79
Treynor Ratio 0 10.92

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Treynor Ratio of 0 with a Alpha of 0 and a R-squared of 0. Its Standard Deviation is 0 while BNDX’s Mean Return is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Beta of 0.

The Vanguard Extended Market Index Fund ETF Shares (VXF) has a Sharpe Ratio of 0.79 with a Beta of 1.23 and a Mean Return of 1.24. Its R-squared is 85.73 while VXF’s Alpha is -3.26. Furthermore, the fund has a Standard Deviation of 18.04 and a Treynor Ratio of 10.92.

BNDX’s Mean Return is 1.24 points lower than that of VXF and its R-squared is 85.73 points lower. With a Standard Deviation of 0, BNDX is slightly less volatile than VXF. The Alpha and Beta of BNDX are 3.26 points higher and 1.23 points lower than VXF’s Alpha and Beta.

Performance

Annual Returns

BNDX vs. VXF - Annual Returns

Year BNDX VXF
2020 4.6% 32.19%
2019 7.88% 28.04%
2018 2.94% -9.37%
2017 2.4% 18.1%
2016 4.67% 16.16%
2015 1.08% -3.26%
2014 8.83% 7.55%
2013 0.0% 38.37%
2012 0.0% 18.48%
2011 0.0% -3.61%
2010 0.0% 27.55%

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 VXF, returning 38.37% on an annual basis. The poorest year for VXF in the last ten years was 2018, with a yield of -9.37%. Most years the Vanguard Extended Market Index Fund ETF Shares has given investors modest returns, such as in 2016, 2017, and 2012, when gains were 16.16%, 18.1%, and 18.48% respectively.

Portfolio Growth

BNDX vs. VXF - Portfolio Growth

Fund Initial Balance Final Balance CAGR
BNDX $10,000 $13,695 4.63%
VXF $10,000 $21,894 15.47%

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 VXF, the end total would have been $21,894. This equates to a $11,894 profit over 7 years and a compound annual growth rate (CAGR) of 15.47%.

BNDX’s CAGR is 10.84 percentage points lower than that of VXF and as a result, would have yielded $8,199 less on a $10,000 investment. Thus, BNDX performed worse than VXF by 10.84% annually.


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