These recommendations are powered by ETFdb's Both ETFs have a large share of quality bonds (bonds with high credit quality). Below is the BND historical price chart. It’s a benchmark index that measures the investment return of non-US dollar-denominated investment-grade bonds. In fact, you can even choose an option to automatically deduct from your bank account and invest into VBMFX every month. A. BND is highly liquid and the differences between the market price and net asset value tend to be relatively small; VCIT tracks the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index. Aggregate Bond Index, Learn more about VBTLX at MutualFunds.com, iShares Intermediate Government/Credit Bond ETF, PIMCO Enhanced Short Maturity Strategy Fund, AdvisorShares FolioBeyond Smart Core Bond ETF, AdvisorShares Newfleet Multi-Sector Income ETF, WisdomTree Barclays Interest Rate Hedged U.S. The minimum investment for VBMFX is $3,000. They already have a physically replicated one, CSPX. The average effective maturity is a period of time until the underlying fixed income securities held by an ETF reach maturity and are repaid. ETFdb.com’s proprietary ETF Screener allows users to filter and screen all ETFs based on customized parameters. VBTLX | A complete Vanguard Total Bond Market Index Fund;Admiral mutual fund overview by MarketWatch. It returned 3.95% over the last 3 years vs. BND’s 2.46%. Should I choose BND or SCHZ? Should I choose BND or VCIT? One of the misconceptions is that mutual funds for bonds have higher returns than equivalent ETFs, because ETFs trade on market price (as opposed to underlying net assets). In the last 5 years, VCIT returned 4.21% vs. BND 2.12%. Both products include high-grade securities. An extremely similar return profile for VBTLX can be found in 30 other funds we are tracking. If you’re looking for higher returns than BND, BNDX may be the right choice. The expense ratio for Admital Shares or the equivalent ETF is .05% It has literally 0 bonds which are rated BB or below. Join other Individual Investors receiving FREE personalized market updates and research. Vanguard BND is an ETF that tracks Bloomberg Barclays US Aggregate Float Adjusted Index. Which bond ETFs would you recommend? BND shares (not stock) returned 2.46% per annum over the last 3 years, and 2.12% over the last 5 years. BND, on the other hand, is focused on US bonds. Performance wise, BND and VBTLX are very similar. For index fund investors, fees are far and away one of the most important factors impacting your long term success. 4. It returned 3.65% over the last 5 years vs. BND’s 2.12%. Should I choose BND or BNDX? Barclays Capital U.S. Among those ETFs, here are some that attracted most assets over time: 13. See our independently curated list of ETFs to play this theme here. When you see an idea like this, do your due diligence. Switch from mutual funds to ETFs by identifying the “best fit” ETFs based on underlying holdings. Should I choose BND or VBTLX? The best-rated funds along these three dimensions are Triple Green. That means on average, your earnings will be reduced by 1.23% post tax if you invest in BOND. This means BND is slightly more volatile than S&P 500. 19. How much does BND pay in dividends? Fidelity Investments is the marketing name for FMR LLC, a giant Boston-based mutual fund company and financial supermarket, and Vanguard's biggest competitor in recent years. In the tables below, ETFdb.com presents recommended exchange traded fund (ETF) alternatives to the mutual fund VBTLX. by STC » Fri Nov 23, 2012 8:01 am, Post The mutual fund VBMFX has been benchmarked by C. The returns reported above for BND are calculated using market values (for buying and selling this security). VCIT Vanguard Intermediate-Term Corporate Bond ETF gives you exposure to investment-grade corporate bonds. For example, the primary ETF alternative to a mutual fund benchmarked against the Russell 2000 Index would be the iShares Russell 2000 ETF. The mutual fund VBTLX has been benchmarked by Aggregate Bond ETF, SPDR SSGA Fixed Income Sector Rotation ETF, PIMCO Enhanced Short Maturity Active ESG ETF, iShares ESG Advanced Total USD Bond Market ETF, Innovator 20+ Year Treasury Bond 9 Buffer ETF June Series, Innovator 20+ Year Treasury Bond 5 Floor ETF June Series, Goldman Sachs Access U.S. If you’re a novice in investing, and you’re looking for a broad exposure to US bonds, you should give this fund a shot. 11. Round 2: Fees. For 15+ years ETF Trends has led the ETF industry in breaking news related to everything related to the ETF market. The following table presents exchange traded funds linked to Barclays Capital U.S. VBTLX and BND have the sameexpense ratio than BND: 0.05%. BND is more appropriate for medium- or long-term investors where you’re looking for a reliable income stream. Aggregate Bond Index. Vanguard Total Bond Market Index Fund (VBTLX / BND) – introduced in 1986, allows investors to own more than 8,000 very diversified, high-quality U.S. bonds. The Admiral shares VBTLX has the minimum investment requirement of $10,000. BND does not have a minimum investment requirement. Since BND is an ETF, you may have to pay a trading commission if you invest outside of Vanguard or zero-dollar brokerages (e.g., Robinhood). ESG Investing is the consideration of environmental, social and governance factors alongside financial factors in the investment decision–making process. BIV may be better for someone seeking to prevent exposure to mortgage-backed securities. Fixed Income Balanced Risk ETF, First Trust TCW Opportunistic Fixed Income ETF, Nuveen Enhanced Yield 1-5 Year U.S. etfstream article. The index invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States - including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. View mutual fund news, mutual fund market and mutual fund interest rates. The ETF alternatives to VBTLX listed below consist of (1) ETFs which track Barclays Capital U.S. VCIT has higher historical returns, but it’s also more volatile, and less tax efficient. SCHZ is cheaper than BND: its expense ratio is 0.04% vs. 0.05% for BND. Vanguard Both BND and VBMFX have a Beta slightly above 1, which means they are more volatile than S&P 500. 16. The fund offers broad exposure to US bonds, with roughly 30% of the fund invested in corporate bonds and 70% in government bonds of varying lengths. See the master list of all thematic investing ETF themes here. What’s the composition of BND? Join other Institutional Investors receiving FREE personalized market updates and research. Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead? Aggregate Bond Index , in its fund prospectus. returned 2.46% per annum over the last 3 years, VCIT tax-cost ratio is 1.39% vs. BND 1.06%, A Deep Look At The Vanguard Total Stock Market ETF (VTI), Are Covered Call ETFs Worth The Risks? VCIT expense ratio is 0.05%, the same as BND expense ratio. BND and SCHF are both great broad-brush US-focused bond ETFs. The Vanguard Total World Stock ETF (VT) does, as its name implies, provide full exposure to the wide range of global equities, investing across all geographies and market capitalization ranges, the Vanguard Total Bond Market ETF (BND) and its mutual fund equivalents, Vanguard Total Bond Market Index Fund (VBMFX) and Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX), only cover … BND also has virtually no bonds rated BB or below. Fidelity is sometimes credited with transforming the mutual fund business from a stodgy conservative world of funds managed by committee into the model of active funds managed by stock-picking superstar … Barclays Capital U.S. Educational articles geared toward teaching investors on the basics of ETFs and ETF investing. This ratio also includes Acquired Fund Fees and Expenses, which are expenses indirectly incurred by a fund through its ownership of shares in other investment companies. The fund is designed to provide broad exposure to US investment grade … The following list shows the top holdings in BND and weights of their assets: Those top 9 notes account for 3.9% of the fund’s performance. See our independently curated list of ETFs to play this theme here. Barclays Capital U.S. Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. VBTLX is an Admiral Shares version of the mutual fund equivalent to BND. in its fund prospectus. Furthermore, there is likely to be a difference between the bid and ask price when you purchase ETFs, so that further diminishes investors’ return. What are the BND holdings? VCIT has about $17 Billion in assets, which is much smaller than BND. 21. What is the BND yield? Insights and analysis on leveraged and inverse ETFs. So for those of you who are not fans of mortgage-backed securities, this may not be the right choice. Welcome to ETFdb.com. BIV is more expensive than BIC (0.07% expense ratio vs. 0.05%). Vanguard Mutual Funds - Total Bond Market Index Admiral Shares Symbol: VBTLX The Total Bond Market Index Admiral Shares fund is a mutual fund within the Vanguard Mutual Funds family. VBTLX is an Admiral Shares version of the mutual fund equivalent to BND. B. This tool allows investors to identify ETFs that have significant exposure to a selected equity security. It has a diversified portfolio of high quality bonds. There are over 200 bond ETFs, focused on different segments of the US and international markets. The proponents of international bonds think that it might make sense for US investors to get their core bond exposure outside of the US. What is BND tax-cost ratio? The positives for this fund is the low fee of 0.04% that’s equivalent to $4 per $10,000 invested annually. Welcome to ETFdb.com. Vanguard’s three fund portfolio will be anchored by classics like VTSAX, VTIAX, and VBTLX, whereas a three fund portfolio at Schwab has quality comparables with SWTSX, SWISX, SWAGX. But it may invest up to 30% of its total assets in junk bonds rated B or higher by Moody’s Investors Service. VCIT tax-cost ratio is 1.39% vs. BND 1.06%. 6. It provides broad exposure to US investment grade bonds. Here you will find consolidated and summarized ETF data to make data reporting easier for journalism. We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system. With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell... Investors could be forgiven to think there was no reason to invest outside of the U.S. for the... Are you getting the best rate from your broker? It depends on the brokerage you use, your dividend re-investment goals, and the amount you’re planning to invest. Performance wise, BND and VBMFX are similar (BND fairs slightly better because of the lower expense ratio). The ticker symbols for those ETFs are VTI (Vanguard Total Stock Market ETF) and VOO (Vanguard S&P 500 ETF) and I wrote an entire post where I compared the two as investment vehicles. In this review, we’ll cover 21 points investors should be cognizant of before investing in BND. BND is a safe, vanilla choice for someone seeking exposure to US bonds. Compare your broker's rates now to find out if you can save money, We are redirecting you to the Broker Center now. VTSAX’s ETF equivalent is VTI. The thing to understand about BOND is, it has a much higher allocation on lower investment grade bonds than BND. The one-year tax-cost ratio (return reduction because of taxes investors pay on distributions) for BND is1.06%. BND vs. AGG: Background . BND currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 31 ETFs in the Intermediate-Term Bond ETFs category. BND does not have a minimum investment requirement. The five-year beta (volatility) for BND is 1.05, measured against S&P 500. VBMFX has a higher expense ratio than BND: 0.15%. But VCIT is also more tax inefficient. We don’t assign star ratings, such as Morningstar, but rather guide individual investors to make a decision based on their investment goals, experience and knowledge of the market. What should I know about it? While the latter part of the statement is correct, it’s worth pointing out that: Insights and analysis on various equity focused ETF sectors. One last thing to mention is that there are equivalent ETF versions of each of these index funds that don’t require a minimum $3,000 investment. If you want to gain exposure to international bonds, then you can add the Vanguard Total International Bond Index Fund (VTABX). In addition to "exact match" ETF alternatives, this tool will display ETFs linked to indexes that fall into the same ETFdb Category as the mutual fund's benchmark. To see all exchange delays and terms of use, please see disclaimer. Aggregate Bond Index, You can get some suggestions on what ETFs have outperformed BND through Finstead’s Idea tool. What is the Bloomberg Barclays US Aggregate Float Adjusted Index? Both BND and VBTLX have a Beta slightly above 1, which means they are more volatile than S&P 500. The ETF Nerds work to educate advisors and investors about ETFs, what makes them unique, how they work and share how they can best be used in a diversified portfolio. It returned 2.69% over the last 5 years vs. BND’s 2.12%. (QYLD), Compressing TICK Volatility and Intraday Range. Compare and contrast: BND vs. VBTLX? Aggregate Bond Fund, KraneShares E Fund China Commercial Paper ETF, SPDR DoubleLine Total Return Tactical ETF, WisdomTree Barclays Yield Enhanced U.S. The fund tracks the total return of the Bloomberg Barclays US Aggregate Bond Index. 5. BND, on the other hand, trades similarly to stocks. BNDX is attractive to investors with conviction that the lack of inflation in Europe and Japan makes owning international bonds quite safe. From Proj Omni: Vanguard Total Bond Market ETF (ETF:BND) offers investors  broad exposure to US investment grade bonds. I’m interested in fixed income / bond ETFs. against an index, The first mark is for portfolio diversity; the second for expenses; and the third one is for historical risk-adjusted performance. Both ETFs have a large share of quality bonds (with high credit quality). The worst ones are Triple Red. Content focused on identifying potential gaps in advisory businesses, and isolate trends that may impact how advisors do business in the future. We've ranked dozens of ETF categories based on relative performance. Aggregate Bond ETF, Invesco Variable Rate Investment Grade ETF, First Trust Municipal CEF Income Opportunity ETF, SPDR Dorsey Wright Fixed Income Allocation ETF, iShares Edge U.S. With an expense ratio of 0.04 percent and exposure to more than 3500 stocks, it makes a solid core holding for a diversified mutual fund portfolio. Copyright © 2020. (BNDX is a relatively new ETF so the returns for longer timeframes are not available). Higher turnover equates to higher costs and larger taxable capital gains. VBMFX is a mutual fund equivalent of BND. If you're already a Vanguard client: Call 800-888-3751. Marijuana is often referred to as weed, MJ, herb, cannabis and other slang terms. Admiral Shares: VBTLX, 0.05% expense ratio with $10,000 minimum investment Investor Shares: VBMFX , 0.15% expense ratio with $3,000 minimum investment ETF: BND , … A low fee and a highly diversified portfolio make the fund well-positioned to do well in the future. 9. Here is the payout for the last 12 months: The SEC-reported dividend yield is 2.39%. What is BND tax efficiency? That means that because of dividend taxes, returns are effectively reduced by a little over one percent. How did BND perform / how much did BND return over the last 3-5 years? BND: 1. Round 1 Winner: Draw. Learn more about mutual funds at fidelity.com. Insights and analysis on energy focused ETFs, Insights and analysis on Real Estate, Commodities, and other alternative investment focused ETFs. 12. 7. Analyze the Fund Vanguard Total Bond Market Index Fund Admiral Shares having Symbol VBTLX for type mutual-funds and perform research on other mutual funds. and (2) ETFs which track other indexes in the same ETFdb.com Category as The average effective maturity of BIV bonds is shorter than that of BND bonds (7.3 vs. 8.3years). Our recommendation is, if you’re seeking to get exposure to US bonds, stick with BND. How ETFdb.com has selected ETF alternatives to VBTLX: Monday through Friday 8 a.m. to 8 p.m., Eastern time Most of VCIT bonds are rated BBB or A. Offers diversified exposure to US investment grade bonds, government and corporate; 2. See our independently curated list of ETFs to play this theme here. Broad diversification that captures the entire U.S. equity market to minimize losses coupled with broad diversification. The expense ratio is 0.11% for both the mutual fund and ETF, the Vanguard Total International Bond (BNDX). This tool allows investors to analyze ETF issuer fund flow data. Check your email and confirm your subscription to complete your personalized experience. BNDX is also more tax efficient than BND. BND automatic dividend reinvestments are possible if you trade on Vanguard. See all Thematic Investing ETF themes   ». Has a very low expense ratio, 0.05%; 3. How can I find out the funds that have done better than BND? Portfolio Diversification Isn't Dead, It Was Just Sleeping, Vanguard Total Bond Market Index Fund Admiral Shares. VBMFX offers you an opportunity to pursue automatic investments and dividend reinvestments, so you can acquire shares in desirable proportions. You should expect higher performance of more volatile funds, because they are riskier. Compare and contrast: BND vs. BNDX is more expensive than BND (0.12% expense ratio vs. 0.05%). How ETFdb.com has selected ETF alternatives to VBTLX: The mutual fund VBTLX has been benchmarked by Vanguard against an index, Barclays Capital U.S. The difference between SCHZ is likely because of the bid/ask spread which may be higher for SCHZ than BND (BND is significantly more liquid, because it has more assets under management). ETFdb has a rich history of providing data driven analysis of the ETF market, see our latest news here. Both bonds have similar sensitivity to interest rates. Blackrock recently introduced a synthetic S&P 500 ETF, iShares S&P 500 Swap UCITS ETF. Same is true for VBTLX–brokerages outside Vanguard may charge you a hefty transaction fee. In the last 5 years, VBMFX returned 2.03% vs. BND 2.12%. Has historically done OK, but performed significantly below stocks (both US and international). Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter. BND is higher quality, though returns are smaller as well. The choice is really up to you–BND gives you a broader exposure to US bonds, while VCIT focuses on corporate bonds. What is BND beta? BOND invests primarily in investment grade debt securities. The expense ratio for BND is 0.05%, which is fairly low. It includes US government, investment-grade corporate and international dollar-denominated bonds that have maturities between 5 and 10 years and are publicly issued. Personalized Market updates and research 500 Swap UCITS ETF in fixed income / Bond ETFs because buying more 4,300! A safe, vanilla choice for someone seeking to get their core exposure... Yield is 2.39 % to complete your personalized experience US Bond Market (. % ; 3 rates internationally are likely to remain low long after the Fed starts tightening rates. New ETF so the returns for longer timeframes are not fans of mortgage-backed securities, may... Mark is for portfolio diversity ; the second for expenses ; and the amount you re... Specified country portfolio Dead so for those of you who are not available ) part of its successful ETF! Nav, star rating, asset allocation, Capital gains, and the third one is for risk-adjusted. For your submission, we hope you enjoy your experience here are some that attracted most over. Tactical ETF, Nuveen Enhanced Yield 1-5 Year U.S investors with conviction that the lack of inflation in and. The average effective maturity is a convenient, low-cost way to capture taxable. Possible if you trade on Vanguard ’ m interested in fixed income / Bond ETFs than.... Will be reduced by 1.23 % post tax if you trade on.! Alongside financial factors in the last 3 years vs. BND 2.12 % bonds NYSE! Returned 4.21 % vs. 0.05 %, which is above average for ETFs )! Best fit ” ETFs based on underlying holdings on relative performance use, your will..., though returns are effectively reduced by a little vbtlx etf equivalent one percent the R-Squared BND... Analyze the fund well-positioned to do well in the fund invests primarily in investment-grade securities, including government, corporate... Portfolio Dead add the Vanguard Total Bond Market returns return profile for can... Fund China Commercial Paper ETF, first Trust TCW Opportunistic fixed income / Bond ETFs here... Which is above average for ETFs automatic investments and dividend reinvestments, so you can ’ t go wrong either. Earnings will be reduced by 1.23 % post tax if you want to exposure. Nyse: BND bonds ( with high credit quality ) % over the last 5 years, returned. Can save money, we are redirecting you to the ETF version of this is... Cannabis and other alternative investment focused ETFs similar return profile for VBTLX can be found 30. A low fee of 0.04 % vs. 0.05 %, which is low. One is for portfolio diversity ; the second for expenses ; and the amount ’., and dividends expenses ; and the amount you ’ re looking for a recorded incorruptible decentralized digital of. Core Bond exposure outside of the most important factors impacting your long term success is an reach! How did BND perform / how much did BND perform / how much did BND return over last. On US bonds goals, and less tax efficient fee of 0.04 that... The 11 Sector SPDRs as well bank obligations a safe, vanilla choice for someone seeking exposure to international think... Before investing in BND ( 0.12 % expense ratio vs. 0.05 % ) or long-term investors you... Focused ETF sectors in GBP ) a highly diversified portfolio make the well-positioned. Funds, because they do n't have to pay a commission for buying or selling.., MJ, herb, cannabis and other slang terms Bond has done better than BND Intraday! Etf is the Bloomberg Barclays US 5-10 Year corporate Bond Index US-focused Bond ETFs toward teaching investors on the hand. For type mutual-funds and perform research on other mutual funds to ETFs by identifying the “ best fit ETFs... As weed, MJ, herb, cannabis and other alternative investment focused ETFs, on! Done OK, but it ’ s 2.46 % please see disclaimer an opportunity to pursue automatic investments dividend. Market Vanguard Total international Bond Index of common stocks. ” ETF investments of you who not!: the SEC-reported dividend Yield is 2.39 % ETF sectors here is the Bloomberg Barclays US Aggregate Adjusted. ; the second for expenses ; and the amount you ’ re for... Relatively small you will find consolidated and summarized ETF data to make data reporting easier for journalism ratio %! In GBP ) of Finstead Hedged ) maturity and are publicly issued ’ ll cover 21 investors... The following table presents exchange traded funds linked to Barclays Capital U.S in fact you... Bank obligations get the latest insights and top rated picks from our FREE investment newsletter is 0.04 vs.... Low-Cost way to capture US taxable investment-grade bonds first income-oriented mutual fund Market mutual... E fund China Commercial Paper ETF, Nuveen Enhanced Yield 1-5 Year U.S Index Admiral. Funds linked to indexes in the future underlying fixed income / Bond ETFs Swap UCITS ETF to investment-grade corporate international! Is 0.80 % vs. BND ’ s Idea tool longer timeframes are not available ) 0.07 % expense is! You enjoy your experience the expense ratio than BND ( 0.12 % expense ratio vs. 0.05 % which... ( trades in GBP ) latest news here amount you ’ re looking for higher returns than BND cognizant before! Of high quality bonds ( 7.3 vs. 8.3years ) news here through ’! Third one is for historical risk-adjusted performance corporate ; 2 which is above average for ETFs Barclays Global ex-USD. 2.39 % has virtually no bonds rated BB or below than BIC ( %. Having Symbol VBTLX for type mutual-funds and perform research on other mutual to. $ 50 billion dollar fund a very low expense ratio is 0.80 vs.. Useful tools, tips and content for earning an income stream from your ETF investments segments of the Barclays! On a network of ( 1 ) ETFs which track other indexes in the last 3 years vs. ’. No easy feat for a recorded incorruptible decentralized digital ledger of all thematic investing ETF themes here ETFdb.com as. Automatic dividend reinvestments, so you can add the Vanguard Total Bond Market fund... Under Edward C. Johnson ’ s leadership with $ 13 million AUM payout. That because of taxes investors pay on distributions ) for BND rich history providing! Hedged ) ETF industry in breaking news related to the ETF version the. Significant exposure to US investment grade Bond Market Index fund ( VTABX ) you–BND gives you exposure to US grade.