What is the primary difference between BND and BNDX?

BND, or Vanguard Total Bond Market ETF, focuses on intermediate core bonds within the US market. In contrast, BNDX, the Vanguard Total International Bond ETF, targets global bond markets while using USD hedging to mitigate currency risk. This means BND provides exposure to domestic credit and interest rates, whereas BNDX offers access to developed and emerging market governments and corporations outside the US. Understanding this fundamental distinction helps investors recognise how each fund serves a different part of the global fixed-income landscape, allowing for diversification across geographic regions rather than duplicating the same market exposure.

How do the expense ratios of BND and BNDX compare?

BND has an extremely low expense ratio of 0.03%, reflecting the economies of scale from its $162.5 billion in net assets. BNDX carries a slightly higher expense ratio of 0.07%, which is still competitive for an international hedged fund. While the difference is only 0.04 percentage points, it represents more than double the relative cost of BND. Over long investment horizons, even small fee differences can compound, making it essential for investors to weigh the cost against the specific benefit of international diversification provided by BNDX compared to the domestic focus of BND.

What does USD hedged mean in the context of BNDX?

USD hedged refers to a strategy used by BNDX to neutralise the impact of currency fluctuations between the US dollar and other global currencies. Since international bonds are issued in various currencies, unhedged exposure could increase volatility as exchange rates move. By hedging, BNDX aims to isolate the bond market returns from currency movements, providing a cleaner exposure to foreign interest rates and credit spreads. This differs from BND, which invests solely in USD-denominated bonds, meaning it does not require currency hedging and is inherently unaffected by exchange rate shifts relative to its base currency.

How do the dividend yields of BND and BNDX differ?

As of the data provided, BNDX offers a dividend yield of 4.63%, which is higher than BND's 4.10%. This 0.53 percentage point difference may be influenced by varying interest rate environments and credit spreads in international versus domestic markets. It is important to note that these yields are not fixed and can change with market conditions and fund distributions. Investors seeking slightly higher income might look at BNDX, but they should also consider the underlying risks and the currency hedging strategy that impacts how returns are realised compared to the domestic bond exposure of BND.

Do BND and BNDX hold the same top 10 companies?

No, BND and BNDX do not share any top 10 holdings. The data explicitly states that there are no common holdings among their listed top positions. This confirms that the two funds provide complementary rather than overlapping exposure. BND invests in US Treasury, corporate, and mortgage-backed securities, while BNDX invests in non-US government and corporate bonds. For an investor combining both funds, this lack of overlap means each contributes distinct assets to the portfolio, fulfilling a diversification role where BND covers domestic risks and BNDX covers international sovereign and corporate credit markets.

What type of investing goal is BND typically associated with?

BND is typically associated with goals centred on domestic core bond allocation. With its massive scale of $162.5 billion and an inception date of April 2007, it serves as a foundational element for portfolios seeking stability and liquidity within the US bond market. It is often used by investors looking to reduce overall portfolio volatility compared to equities, providing a benchmark-like exposure to intermediate-term US debt. Its low expense ratio of 0.03% makes it suitable for cost-sensitive long-term holders who prioritise efficient access to the domestic fixed-income sector without seeking high yield or international diversification.

How does the net asset value compare between the two funds?

BND holds net assets of $162.5 billion, significantly larger than BNDX's $83.0 billion. Both funds, however, possess substantial scale that generally supports high liquidity for typical retail and institutional transactions. The larger size of BND may result in slightly tighter bid-ask spreads due to higher trading volumes, but BNDX remains highly accessible. For investors, this data point indicates that neither fund faces extreme liquidity constraints. The difference in size largely reflects the broader appeal and long-standing dominance of domestic bond markets in US portfolios compared to the more specialised niche of hedged international bonds.

Why are top holdings not available for either fund?

The provided data indicates that top holdings and sector weights are not available for both BND and BNDX. Bond funds often hold thousands of individual issuers, making a simple top 10 list less meaningful than in equity portfolios. Additionally, the composition of bond indices changes frequently due to maturities and new issuances. Without detailed holdings data, investors rely on the fund categories—Intermediate Core Bond for BND and Global Bond-USD Hedged for BNDX—to understand risk profiles. This limitation emphasises the importance of looking at the broader index methodology and fund objective rather than specific issuer concentrations.

How do these funds track their respective indices?

The data states that index tracking information is not available for either BND or BNDX. However, their names and categories provide clues: BND targets the total US bond market, while BNDX focuses on international hedged bonds. Typically, these funds use sampling techniques to replicate their benchmarks rather than holding every single bond. For beginners, the key takeaway is that both aim to mirror their specific market segments closely. Without access to precise tracking error data, investors should assume standard replication methods are in place to align performance with their respective intermediate core and global hedged bond markets.

What should beginners know before reading this comparison?

Beginners should understand that this comparison is educational and not financial advice. The data provided, fetched from Yahoo Finance on 2026-09-22, includes specific figures for expense ratios, yields, and assets, but lacks detailed holdings or index tracking info. When evaluating BND versus BNDX, consider how domestic versus international exposure fits your risk tolerance and diversification needs. Always verify current yields and fees with official sources, as these change over time. Remember that past performance, such as the inception dates of 2007 for BND and 2013 for BNDX, does not guarantee future results, and yields vary with market conditions.

BND vs BNDX

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Vanguard Total Bond Market ETF (BND) and Vanguard Total International Bond ETF (BNDX). This page examines fees, holdings, dividends, and how each tracks its market. BND targets intermediate core bonds while BNDX focuses on global USD-hedged bonds. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

BND

Metric

BNDX

0.03%

Expense Ratio

0.07%

4.10%

Dividend Yield

4.63%

$162.51B

Net Assets

$82.97B

15,000

Holdings

6,868

Apr 3, 2007

Inception Date

Jun 4, 2013

–

Index Tracked

–

Intermediate Core Bond

Fund Category

Global Bond-USD Hedged

BND costs about $4.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

BND

Pros

BND offers an extremely low expense ratio of 0.03%, minimising the cost burden on investors.
With $162.5 billion in net assets, the fund benefits from substantial liquidity and scale.
Established in April 2007, the fund provides a long operational history within the core bond market.

Considerations

Dividend yield is 4.10%, which may lag alternatives offering higher income.
Top holdings and sector weights are not available, limiting transparency for detailed risk assessment.
Track records for specific indices are unavailable, reducing clarity on benchmark alignment.

BNDX

Pros

BNDX delivers a higher dividend yield of 4.63%, offering enhanced income potential.
Net assets of $83.0 billion provide sufficient liquidity for typical investor transactions.
The fund has operated since June 2013, establishing a stable presence in the international bond market.

Considerations

Expense ratio of 0.07% is more than double that of BND, increasing investment costs.
Lacks available top holdings and sector weight data, hindering comprehensive portfolio analysis.
Index tracking information is unavailable, obscuring the precise methodology and benchmark adherence.

About BND and BNDX

BND (BND)

The Vanguard Total Bond Market ETF (BND) is designed to track the performance of a broad, investment-grade U.S. bond market index. With an intermediate core bond focus, it holds over 15,000 securities, including U.S. Treasuries, government-backed mortgages, and corporate bonds. This extensive diversification aims to mitigate the impact of any single credit default. Investors often view BND as a foundational income component for balanced portfolios, seeking lower volatility compared to equities. The fund carries a minimal expense ratio of 0.03%, helping to preserve returns. While it currently offers a yield of approximately 4.10%, potential investors should remember that bond prices typically move inversely to interest rates. If rates rise, the fund's value may decline. Conversely, falling rates often support bond prices. BND provides a convenient way to access the fixed-income market, though returns are not guaranteed, and capital is at risk.

BNDX (BNDX)

The Vanguard Total International Bond ETF (BNDX) offers broad exposure to non-US investment-grade debt securities. As a Global Bond-USD Hedged fund, it primarily targets international markets while mitigating currency risk by hedging foreign exchange back to the US dollar. This strategy aims to provide a stable income component within a diversified portfolio. With net assets of USD 82.97 billion and over 6,800 holdings, it provides significant diversification. The fund maintains a low expense ratio of 0.07%, which helps preserve returns by keeping costs minimal. Investors should note that while the dividend yield is attractive at 4.63%, bond fund values can fluctuate with interest rate changes and issuer credit quality. It serves as an educational tool for understanding how global fixed-income markets operate and how hedging strategies impact international bond investing. Remember that capital preservation is not guaranteed, and past performance may not reflect future results.

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BND vs BNDX

Fund Snapshot