BND vs FXNAX

Quick Verdict

FXNAX has a lower expense ratio. BND delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.

Lower Fees: FXNAXHigher Returns: BNDMore Diversified: BND

Side-by-Side Comparison

MetricBNDFXNAXWinner
Expense Ratio0.03%0.03%
AUM$159.8B$39.5B
Dividend Yield3.94%3.39%
Holdings17,52810,443
YTD Return-0.61%-2.65%
1Y Return+1.57%-1.06%
3Y Return (annualized)+3.92%+0.33%
5Y Return (annualized)-0.50%-3.47%
Volatility (annualized)4.6%6.3%
Max Drawdown-19.6%-21.6%
Fund FamilyVanguard (US)Fidelity Investments (US)
CategoryFixed IncomeFixed Income
InceptionApr 3, 2007May 4, 2011

BND vs FXNAX Performance

Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Fidelity US Bond Index Fund (FXNAX) is a mutual fund from Fidelity Investments (US). Over the past year BND returned +1.57% while FXNAX returned -1.06%. Year to date, BND is down 0.61% versus a loss of 2.65% for FXNAX.

Over three years, BND compounded at +3.92% per year against +0.33% for FXNAX; over five years the annualized figures are -0.50% and -3.47% respectively. Across the full 5-year window we track, BND has the edge at +0.67% annualized vs -3.47%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FXNAX has been the more volatile fund, with annualized monthly volatility of 6.3% compared with 4.6% for BND. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -19.6% for BND and -21.6% for FXNAX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BND charges 0.03% per year while FXNAX charges 0.03%. On a $10,000 position that is $3 vs $3 annually, a gap of $0 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 3.39% for FXNAX.

Holdings Overlap

35.1%overlap

BND and FXNAX share 2901 holdings out of 13196 unique holdings combined, representing a 35.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BNDWeight in FXNAXDifference
T 2.75 08/15/320.33%0.87%0.54%
T 1.5 02/15/300.17%0.93%0.76%
T 3.75 05/15/280.24%0.82%0.58%
T 3.875 08/15/33ProProPro
T 4.5 11/15/33ProProPro
T 2.625 07/31/29ProProPro
T 4.25 11/15/34ProProPro
T 4.625 02/15/35ProProPro
T 1.5 01/31/27ProProPro
T 4 02/15/34ProProPro
See all 10 holdings BND shares with FXNAX
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, BND or FXNAX?

BND has an expense ratio of 0.03% while FXNAX charges 0.03%. FXNAX is the cheaper option. On a $10,000 investment, that is $0 per year of difference.

Which performed better, BND or FXNAX?

Over the past year BND returned +1.57% vs -1.06% for FXNAX, so BND leads on 1-year performance. Over the longest common window we track (5 years), BND annualized +0.67% vs -3.47% for FXNAX. Past performance does not guarantee future results.

Which is riskier, BND or FXNAX?

FXNAX has been the more volatile fund at 6.3% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs FXNAX -21.6%.

Should I hold both BND and FXNAX?

BND and FXNAX have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between BND and FXNAX?

BND and FXNAX share 2901 common holdings with a 35.1% weight overlap. Combined, they hold 13196 unique securities.

Which pays a higher dividend, BND or FXNAX?

BND yields 3.94% while FXNAX yields 3.39%, so BND currently pays the higher dividend yield.

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