VOO vs. BNDX: What’s The Difference?

The Vanguard S&P 500 ETF (VOO) and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and BNDX is a Vanguard N/A fund. So, what’s the difference between VOO and BNDX? And which fund is better?

The expense ratio of VOO is 0.05 percentage points lower than BNDX’s (0.03% vs. 0.08%). VOO also has a high exposure to the technology sector while BNDX is mostly comprised of A bonds. Overall, VOO has provided higher returns than BNDX over the past ten years.

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

Summary

VOO BNDX
Name Vanguard S&P 500 ETF Vanguard Total International Bond Index Fund ETF Shares
Category Large Blend N/A
Issuer Vanguard Vanguard
AUM 753.41B 116.41B
Avg. Return 14.45% 4.63%
Div. Yield 1.34% 0.94%
Expense Ratio 0.03% 0.08%

The Vanguard S&P 500 ETF (VOO) is a Large Blend fund that is issued by Vanguard. It currently has 753.41B total assets under management and has yielded an average annual return of 14.45% over the past 10 years. The fund has a dividend yield of 1.34% 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%.

VOO’s dividend yield is 0.40% higher than that of BNDX (1.34% vs. 0.94%). Also, VOO yielded on average 9.82% more per year over the past decade (14.45% vs. 4.63%). The expense ratio of VOO is 0.05 percentage points lower than BNDX’s (0.03% vs. 0.08%).

Fund Composition

Holdings

VOO - Holdings

VOO Holdings Weight
Apple Inc 5.92%
Microsoft Corp 5.62%
Amazon.com Inc 4.06%
Facebook Inc Class A 2.29%
Alphabet Inc Class A 2.02%
Alphabet Inc Class C 1.97%
Tesla Inc 1.44%
Berkshire Hathaway Inc Class B 1.44%
NVIDIA Corp 1.37%
JPMorgan Chase & Co 1.3%

VOO’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.92%, 5.62%, 4.06%, 2.29%, and 2.02%.

Alphabet Inc Class C (1.97%), Tesla Inc (1.44%), and Berkshire Hathaway Inc Class B (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VOO’s holdings at 1.37% and 1.3%.

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.

Performance

Annual Returns

VOO vs. BNDX - Annual Returns

Year VOO BNDX
2020 18.35% 4.6%
2019 31.46% 7.88%
2018 -4.42% 2.94%
2017 21.78% 2.4%
2016 11.93% 4.67%
2015 1.35% 1.08%
2014 13.63% 8.83%
2013 32.33% 0.0%
2012 15.98% 0.0%
2011 2.09% 0.0%
2010 0.0% 0.0%

VOO had its best year in 2013 with an annual return of 32.33%. VOO’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the Vanguard S&P 500 ETF provided moderate returns such as in 2016, 2014, and 2012 where annual returns amounted to 11.93%, 13.63%, and 15.98% 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

VOO vs. BNDX - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VOO $10,000 $23,343 14.45%
BNDX $10,000 $13,695 4.63%

A $10,000 investment in VOO would have resulted in a final balance of $23,343. This is a profit of $13,343 over 7 years and amounts to a compound annual growth rate (CAGR) of 14.45%.

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%.

VOO’s CAGR is 9.82 percentage points higher than that of BNDX and as a result, would have yielded $9,648 more on a $10,000 investment. Thus, VOO outperformed BNDX by 9.82% annually.


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