The SPDR S&P 500 ETF Trust (SPY) and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) are both among the Top 100 ETFs. SPY is a SPDR State Street Global Advisors Large Blend fund and BNDX is a Vanguard N/A fund. So, what’s the difference between SPY and BNDX? And which fund is better?
The expense ratio of SPY is 0.01 percentage points higher than BNDX’s (0.09% vs. 0.08%). SPY also has a higher exposure to the technology sector and a higher standard deviation. Overall, SPY has provided higher returns than BNDX over the past ten years.
In this article, we’ll compare SPY vs. BNDX. We’ll look at annual returns and portfolio growth, as well as at their industry exposure and holdings. Moreover, I’ll also discuss SPY’s and BNDX’s performance, risk metrics, and fund composition and examine how these affect their overall returns.
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Summary
| SPY | BNDX | |
| Name | SPDR S&P 500 ETF Trust | Vanguard Total International Bond Index Fund ETF Shares |
| Category | Large Blend | N/A |
| Issuer | SPDR State Street Global Advisors | Vanguard |
| AUM | 374.03B | 116.41B |
| Avg. Return | 14.41% | 4.63% |
| Div. Yield | 1.3% | 0.94% |
| Expense Ratio | 0.09% | 0.08% |
The SPDR S&P 500 ETF Trust (SPY) is a Large Blend fund that is issued by SPDR State Street Global Advisors. It currently has 374.03B total assets under management and has yielded an average annual return of 14.41% over the past 10 years. The fund has a dividend yield of 1.3% with an expense ratio of 0.09%.
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%.
SPY’s dividend yield is 0.36% higher than that of BNDX (1.3% vs. 0.94%). Also, SPY yielded on average 9.78% more per year over the past decade (14.41% vs. 4.63%). The expense ratio of SPY is 0.01 percentage points higher than BNDX’s (0.09% vs. 0.08%).
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Fund CompositionIndustry Exposure
| SPY | BNDX | |
| Technology | 24.22% | 0.0% |
| Industrials | 8.86% | 0.0% |
| Energy | 2.86% | 0.0% |
| Communication Services | 11.14% | 0.0% |
| Utilities | 2.45% | 0.0% |
| Healthcare | 13.09% | 0.0% |
| Consumer Defensive | 6.32% | 0.0% |
| Real Estate | 2.57% | 0.0% |
| Financial Services | 14.23% | 0.0% |
| Consumer Cyclical | 12.0% | 0.0% |
| Basic Materials | 2.27% | 0.0% |
The SPDR S&P 500 ETF Trust (SPY) has the most exposure to the Technology sector at 24.22%. This is followed by Financial Services and Healthcare at 14.23% and 13.09% respectively. Utilities (2.45%), Real Estate (2.57%), and Energy (2.86%) only make up 7.88% of the fund’s total assets.
SPY’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 6.32%, 8.86%, 11.14%, 12.0%, and 13.09%.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.
BNDX’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.
SPY is 24.22% more exposed to the Technology sector than BNDX (24.22% vs 0.0%). SPY’s exposure to Financial Services and Healthcare stocks is 14.23% higher and 13.09% higher respectively (14.23% vs. 0.0% and 13.09% vs. 0.0%). In total, Utilities, Real Estate, and Energy also make up 7.88% more of the fund’s holdings compared to BNDX (7.88% vs. 0.00%).
Holdings
| SPY Holdings | Weight |
| Apple Inc | 5.9% |
| Microsoft Corp | 5.6% |
| Amazon.com Inc | 4.05% |
| Facebook Inc A | 2.29% |
| Alphabet Inc A | 2.02% |
| Alphabet Inc Class C | 1.96% |
| Berkshire Hathaway Inc Class B | 1.45% |
| Tesla Inc | 1.44% |
| NVIDIA Corp | 1.37% |
| JPMorgan Chase & Co | 1.29% |
SPY’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.9%, 5.6%, 4.05%, 2.29%, and 2.02%.
Alphabet Inc Class C (1.96%), Berkshire Hathaway Inc Class B (1.45%), and Tesla Inc (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SPY’s holdings at 1.37% and 1.29%.
| BNDX Holdings | Weight |
| Euroz Ltd | 0.77% |
| United Kingdom of Great Britain and Northern Ireland | 0.51% |
| France (Republic Of) | 0.42% |
| Italy (Republic Of) | 0.4% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
BNDX’s Top Holdings are Euroz Ltd, United Kingdom of Great Britain and Northern Ireland, France (Republic Of), Italy (Republic Of), and N/A at 0.77%, 0.51%, 0.42%, 0.4%, and 0%.
N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the BNDX’s holdings at 0% and 0%.
Performance
Annual Returns
| Year | SPY | BNDX |
| 2020 | 18.25% | 4.6% |
| 2019 | 31.29% | 7.88% |
| 2018 | -4.45% | 2.94% |
| 2017 | 21.69% | 2.4% |
| 2016 | 11.8% | 4.67% |
| 2015 | 1.34% | 1.08% |
| 2014 | 13.53% | 8.83% |
| 2013 | 32.21% | 0.0% |
| 2012 | 15.84% | 0.0% |
| 2011 | 2.06% | 0.0% |
| 2010 | 14.93% | 0.0% |
SPY had its best year in 2013 with an annual return of 32.21%. SPY’s worst year over the past decade yielded -4.45% and occurred in 2018. In most years the SPDR S&P 500 ETF Trust provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.53%, 14.93%, and 15.84% 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 |
| SPY | $10,000 | $23,219 | 14.41% |
| BNDX | $10,000 | $13,695 | 4.63% |
A $10,000 investment in SPY would have resulted in a final balance of $23,219. This is a profit of $13,219 over 7 years and amounts to a compound annual growth rate (CAGR) of 14.41%.
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%.
SPY’s CAGR is 9.78 percentage points higher than that of BNDX and as a result, would have yielded $9,524 more on a $10,000 investment. Thus, SPY outperformed BNDX by 9.78% annually.
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