The iShares Core S&P 500 ETF (IVV) and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) are both among the Top 100 ETFs. IVV is a iShares Large Blend fund and BNDX is a Vanguard N/A fund. So, what’s the difference between IVV and BNDX? And which fund is better?
The expense ratio of IVV is 0.05 percentage points lower than BNDX’s (0.03% vs. 0.08%). IVV also has a high exposure to the technology sector while BNDX is mostly comprised of A bonds. Overall, IVV has provided higher returns than BNDX over the past ten years.
In this article, we’ll compare IVV vs. BNDX. We’ll look at industry exposure and portfolio growth, as well as at their performance and annual returns. Moreover, I’ll also discuss IVV’s and BNDX’s holdings, risk metrics, and fund composition and examine how these affect their overall returns.
Summary
| IVV | BNDX | |
| Name | iShares Core S&P 500 ETF | Vanguard Total International Bond Index Fund ETF Shares |
| Category | Large Blend | N/A |
| Issuer | iShares | Vanguard |
| AUM | 294.95B | 116.41B |
| Avg. Return | 14.48% | 4.63% |
| Div. Yield | 1.28% | 0.94% |
| Expense Ratio | 0.03% | 0.08% |
The iShares Core S&P 500 ETF (IVV) is a Large Blend fund that is issued by iShares. It currently has 294.95B total assets under management and has yielded an average annual return of 14.48% over the past 10 years. The fund has a dividend yield of 1.28% with an expense ratio of 0.03%.
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%.
IVV’s dividend yield is 0.34% higher than that of BNDX (1.28% vs. 0.94%). Also, IVV yielded on average 9.85% more per year over the past decade (14.48% vs. 4.63%). The expense ratio of IVV is 0.05 percentage points lower than BNDX’s (0.03% vs. 0.08%).
Fund Composition
Holdings
| IVV Holdings | Weight |
| Apple Inc | 6.14% |
| Microsoft Corp | 5.76% |
| Amazon.com Inc | 3.83% |
| Facebook Inc Class A | 2.29% |
| Alphabet Inc Class A | 2.17% |
| Alphabet Inc Class C | 2.07% |
| Tesla Inc | 1.42% |
| Berkshire Hathaway Inc Class B | 1.42% |
| NVIDIA Corp | 1.3% |
| JPMorgan Chase & Co | 1.23% |
IVV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 6.14%, 5.76%, 3.83%, 2.29%, and 2.17%.
Alphabet Inc Class C (2.07%), Tesla Inc (1.42%), and Berkshire Hathaway Inc Class B (1.42%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the IVV’s holdings at 1.3% and 1.23%.
| 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.
Performance
Annual Returns
| Year | IVV | BNDX |
| 2020 | 18.37% | 4.6% |
| 2019 | 31.44% | 7.88% |
| 2018 | -4.42% | 2.94% |
| 2017 | 21.79% | 2.4% |
| 2016 | 11.9% | 4.67% |
| 2015 | 1.34% | 1.08% |
| 2014 | 13.62% | 8.83% |
| 2013 | 32.31% | 0.0% |
| 2012 | 15.91% | 0.0% |
| 2011 | 2.03% | 0.0% |
| 2010 | 14.96% | 0.0% |
IVV had its best year in 2013 with an annual return of 32.31%. IVV’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the iShares Core S&P 500 ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.62%, 14.96%, and 15.91% 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
| Fund | Initial Balance | Final Balance | CAGR |
| IVV | $10,000 | $23,335 | 14.48% |
| BNDX | $10,000 | $13,695 | 4.63% |
A $10,000 investment in IVV would have resulted in a final balance of $23,335. This is a profit of $13,335 over 7 years and amounts to a compound annual growth rate (CAGR) of 14.48%.
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%.
IVV’s CAGR is 9.85 percentage points higher than that of BNDX and as a result, would have yielded $9,640 more on a $10,000 investment. Thus, IVV outperformed BNDX by 9.85% annually.
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