IJR vs. BNDX: What’s The Difference?

The iShares Core S&P Small-Cap ETF (IJR) and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) are both among the Top 100 ETFs. IJR is a iShares Small Blend fund and BNDX is a Vanguard N/A fund. So, what’s the difference between IJR and BNDX? And which fund is better?

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

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

Summary

IJR BNDX
Name iShares Core S&P Small-Cap ETF Vanguard Total International Bond Index Fund ETF Shares
Category Small Blend N/A
Issuer iShares Vanguard
AUM 68.64B 116.41B
Avg. Return 13.97% 4.63%
Div. Yield 0.96% 0.94%
Expense Ratio 0.06% 0.08%

The iShares Core S&P Small-Cap ETF (IJR) is a Small Blend fund that is issued by iShares. It currently has 68.64B total assets under management and has yielded an average annual return of 13.97% over the past 10 years. The fund has a dividend yield of 0.96% with an expense ratio of 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%.

IJR’s dividend yield is 0.02% higher than that of BNDX (0.96% vs. 0.94%). Also, IJR yielded on average 9.34% more per year over the past decade (13.97% vs. 4.63%). The expense ratio of IJR is 0.02 percentage points lower than BNDX’s (0.06% vs. 0.08%).

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Fund Composition

Holdings

IJR - Holdings

IJR Holdings Weight
BlackRock Cash Funds Treasury SL Agency 1.08%
GameStop Corp Class A 0.86%
Omnicell Inc 0.61%
Stamps.com Inc 0.58%
Saia Inc 0.57%
Power Integrations Inc 0.57%
Exponent Inc 0.54%
NeoGenomics Inc 0.53%
Chart Industries Inc 0.53%
Macy’s Inc 0.51%

IJR’s Top Holdings are BlackRock Cash Funds Treasury SL Agency, GameStop Corp Class A, Omnicell Inc, Stamps.com Inc, and Saia Inc at 1.08%, 0.86%, 0.61%, 0.58%, and 0.57%.

Power Integrations Inc (0.57%), Exponent Inc (0.54%), and NeoGenomics Inc (0.53%) have a slightly smaller but still significant weight. Chart Industries Inc and Macy’s Inc are also represented in the IJR’s holdings at 0.53% and 0.51%.

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.

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Risk Analysis

IJR BNDX
Mean Return 1.21 0
R-squared 76.03 0
Std. Deviation 18.68 0
Alpha -3.7 0
Beta 1.2 0
Sharpe Ratio 0.74 0
Treynor Ratio 10.77 0

The iShares Core S&P Small-Cap ETF (IJR) has a Sharpe Ratio of 0.74 with a Beta of 1.2 and a Mean Return of 1.21. Its Standard Deviation is 18.68 while IJR’s Alpha is -3.7. Furthermore, the fund has a Treynor Ratio of 10.77 and a R-squared of 76.03.

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

IJR’s Mean Return is 1.21 points higher than that of BNDX and its R-squared is 76.03 points higher. With a Standard Deviation of 18.68, IJR is slightly more volatile than BNDX. The Alpha and Beta of IJR are 3.70 points lower and 1.20 points higher than BNDX’s Alpha and Beta.

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Performance

Annual Returns

IJR vs. BNDX - Annual Returns

Year IJR BNDX
2020 11.24% 4.6%
2019 22.79% 7.88%
2018 -8.43% 2.94%
2017 13.2% 2.4%
2016 26.49% 4.67%
2015 -2.0% 1.08%
2014 5.67% 8.83%
2013 41.36% 0.0%
2012 16.28% 0.0%
2011 0.9% 0.0%
2010 26.14% 0.0%

IJR had its best year in 2013 with an annual return of 41.36%. IJR’s worst year over the past decade yielded -8.43% and occurred in 2018. In most years the iShares Core S&P Small-Cap ETF provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 11.24%, 13.2%, and 16.28% respectively.

The year 2014 was the strongest year for BNDX, returning 8.83% on an annual basis. The poorest year for BNDX in the last ten years was 2013, with a yield of 0.0%. Most years the Vanguard Total International Bond Index Fund ETF Shares has given investors modest returns, such as in 2015, 2017, and 2018, when gains were 1.08%, 2.4%, and 2.94% respectively.

Portfolio Growth

IJR vs. BNDX - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJR $10,000 $18,546 13.97%
BNDX $10,000 $13,695 4.63%

A $10,000 investment in IJR would have resulted in a final balance of $18,546. This is a profit of $8,546 over 7 years and amounts to a compound annual growth rate (CAGR) of 13.97%.

With a $10,000 investment in BNDX, the end total would have been $13,695. This equates to a $3,695 profit over 7 years and a compound annual growth rate (CAGR) of 4.63%.

IJR’s CAGR is 9.34 percentage points higher than that of BNDX and as a result, would have yielded $4,851 more on a $10,000 investment. Thus, IJR outperformed BNDX by 9.34% annually.


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