BND vs VGIT

Quick Verdict

BND delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.

Lower Fees: TiedHigher Returns: BNDMore Diversified: BND

Side-by-Side Comparison

MetricBNDVGITWinner
Expense Ratio0.03%0.03%
AUM$159.8B$42.1B
Dividend Yield3.94%3.84%
Holdings17,528106
YTD Return-0.61%-0.91%
1Y Return+1.57%+0.89%
3Y Return (annualized)+3.92%+3.56%
5Y Return (annualized)-0.50%-0.34%
Volatility (annualized)4.6%4.3%
Max Drawdown-19.6%-17.2%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeFixed Income
InceptionApr 3, 2007Nov 19, 2009

BND vs VGIT Performance

Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year BND returned +1.57% while VGIT returned +0.89%. Year to date, BND is down 0.61% versus a loss of 0.91% for VGIT.

Over three years, BND compounded at +3.92% per year against +3.56% for VGIT; over five years the annualized figures are -0.50% and -0.34% respectively. Across the full 17-year window we track, VGIT has the edge at +0.74% annualized vs +0.67%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BND has been the more volatile fund, with annualized monthly volatility of 4.6% compared with 4.3% for VGIT. 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 -17.2% for VGIT. 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BND charges 0.03% per year while VGIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 3.94% against 3.84% for VGIT.

Holdings Overlap

17.5%overlap

BND and VGIT share 84 holdings out of 10790 unique holdings combined, representing a 17.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BNDWeight in VGITDifference
T 4.625 02/15/350.42%1.97%1.55%
T 4.375 05/15/340.41%1.95%1.54%
T 4.25 11/15/340.42%1.92%1.50%
T 4 02/15/34ProProPro
T 4.25 08/15/35ProProPro
T 3.875 08/15/34ProProPro
T 4.25 05/15/35ProProPro
T 4.5 11/15/33ProProPro
T 3.875 08/15/33ProProPro
T 4 02/28/30ProProPro
See all 10 holdings BND shares with VGIT
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, BND or VGIT?

BND has an expense ratio of 0.03% while VGIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, BND or VGIT?

Over the past year BND returned +1.57% vs +0.89% for VGIT, so BND leads on 1-year performance. Over the longest common window we track (17 years), BND annualized +0.67% vs +0.74% for VGIT. Past performance does not guarantee future results.

Which is riskier, BND or VGIT?

BND has been the more volatile fund at 4.6% annualized versus 4.3% for VGIT. Worst drawdown: BND -19.6% vs VGIT -17.2%.

Should I hold both BND and VGIT?

BND and VGIT have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BND and VGIT?

BND and VGIT share 84 common holdings with a 17.5% weight overlap. Combined, they hold 10790 unique securities.

Which pays a higher dividend, BND or VGIT?

BND yields 3.94% while VGIT yields 3.84%, so BND currently pays the higher dividend yield.

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