BNDW vs VXUS
BNDW vs VXUS
Vanguard Total World Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | BNDW | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.05% | |
| AUM | $1.9B | $156.5B | |
| Dividend Yield | 2.84% | 2.60% | |
| Holdings | 4 | 8,747 | |
| YTD Return | +0.22% | +13.57% | |
| 1Y Return | +1.57% | +28.78% | |
| 3Y Return (annualized) | +4.17% | +18.63% | |
| 5Y Return (annualized) | -0.23% | +9.05% | |
| Volatility (annualized) | 5.0% | 15.1% | |
| Max Drawdown | -17.7% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 4, 2018 | Jan 26, 2011 |
BNDW vs VXUS Performance
Vanguard Total World Bond ETF (BNDW) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BNDW returned +1.57% while VXUS returned +28.78%. Year to date, BNDW is up 0.22% versus a gain of 13.57% for VXUS.
Over three years, BNDW compounded at +4.17% per year against +18.63% for VXUS; over five years the annualized figures are -0.23% and +9.05% respectively. Across the full 8-year window we track, VXUS has the edge at +4.80% annualized vs +0.93%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDW charges 0.05% per year while VXUS charges 0.05%. On a $10,000 position that is $5 vs $5 annually. On income, BNDW currently yields 2.84% against 2.60% for VXUS.
Holdings Overlap
BNDW and VXUS share 0 holdings out of 7863 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 VXUS?
BNDW has an expense ratio of 0.05% while VXUS charges 0.05%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BNDW or VXUS?
Over the past year BNDW returned +1.57% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (8 years), BNDW annualized +0.93% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, BNDW or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 5.0% for BNDW. Worst drawdown: BNDW -17.7% vs VXUS -39.9%.
Should I hold both BNDW and VXUS?
BNDW and VXUS have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDW and VXUS?
BNDW and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7863 unique securities.
Which pays a higher dividend, BNDW or VXUS?
BNDW yields 2.84% while VXUS yields 2.60%, so BNDW currently pays the higher dividend yield.
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