BNDW vs VOO
BNDW vs VOO
Vanguard Total World Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | BNDW | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $1.9B | $979.0B | |
| Dividend Yield | 2.84% | 1.09% | |
| Holdings | 4 | 509 | |
| YTD Return | +0.01% | +13.11% | |
| 1Y Return | +1.41% | +22.88% | |
| 3Y Return (annualized) | +4.09% | +21.08% | |
| 5Y Return (annualized) | -0.17% | +13.26% | |
| Volatility (annualized) | 5.0% | 14.1% | |
| Max Drawdown | -17.7% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 4, 2018 | Sep 7, 2010 |
BNDW vs VOO Performance
Vanguard Total World Bond ETF (BNDW) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BNDW returned +1.41% while VOO returned +22.88%. Year to date, BNDW is up 0.01% versus a gain of 13.11% for VOO.
Over three years, BNDW compounded at +4.09% per year against +21.08% for VOO; over five years the annualized figures are -0.17% and +13.26% respectively. Across the full 8-year window we track, VOO has the edge at +13.54% annualized vs +0.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 5.0% for BNDW. 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 -17.7% for BNDW and -34.3% for VOO. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDW charges 0.05% per year while VOO charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, BNDW currently yields 2.84% against 1.09% for VOO.
Holdings Overlap
BNDW and VOO share 0 holdings out of 508 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BNDW or VOO?
BNDW has an expense ratio of 0.05% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, BNDW or VOO?
Over the past year BNDW returned +1.41% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (8 years), BNDW annualized +0.90% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, BNDW or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 5.0% for BNDW. Worst drawdown: BNDW -17.7% vs VOO -34.3%.
Should I hold both BNDW and VOO?
BNDW and VOO have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDW and VOO?
BNDW and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, BNDW or VOO?
BNDW yields 2.84% while VOO yields 1.09%, so BNDW currently pays the higher dividend yield.
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