# BND vs BNDX: fees, holdings and returns compared

> BND vs BNDX: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

BND holds thousands of US investment grade bonds: government, mortgage and company bonds. BNDX holds thousands of investment grade bonds from governments and companies outside the US, with the currency risk hedged back to dollars. Vanguard often pairs them. Over the same dates since June 2013, BND returned about 1.8% a year and BNDX returned about 2.2% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 20, 2026.

## Key points

- BND costs less: 0.03% a year against 0.07%.
- BND started trading in April 2007. BNDX started in May 2013.
- Worst drops since 2013: BND −18.6%, BNDX −16.2%.
- Daily correlation: 0.73 (1 means they always move together).

## What is the difference between BND and BNDX?

The difference is where the borrowers are. BNDX lends to governments and companies in Europe, Japan and elsewhere. It hedges currencies, so its value moves mostly with foreign interest rates, not with the dollar. Foreign rates and US rates do not always move together, so the two funds can do differently in a given year, though both fell when rates rose worldwide in 2022.

| Fact | BND | BNDX |
| --- | --- | --- |
| Full name | Vanguard Total Bond Market ETF | Vanguard Total International Bond ETF |
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.03% a year | 0.07% a year |
| Started trading | April 3, 2007 | May 31, 2013 |
| Tracks | Bloomberg U.S. Aggregate Float Adjusted Index | Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (Hedged) |
| Holdings | 11,434 holdings as of September 30, 2026 | 6,837 holdings as of September 30, 2026 |
| Type | US bonds, ETF | International bonds, ETF |

Fund facts checked on the [Vanguard BND page](https://investor.vanguard.com/investment-products/etfs/profile/bnd) and the [Vanguard BNDX page](https://investor.vanguard.com/investment-products/etfs/profile/bndx).

## Is BND or BNDX cheaper?

BND costs less: 0.03% a year against 0.07%. On $10,000, that is about $3 a year for BND and $7 for BNDX. The fund takes its fee out of its own value a little each day, so you never get a bill.

## BND vs BNDX performance over the same dates

Both funds are measured from June 2013 to October 2026, the dates both traded. BND returned about 1.8% a year and BNDX returned about 2.2% a year. BNDX came out ahead over this period, which does not mean it will again.

| Measure | BND | BNDX |
| --- | --- | --- |
| $10,000 grew to | $12,697 | $13,391 |
| Total return | 27.0% | 33.9% |
| Return per year (CAGR) | 1.8% | 2.2% |
| Worst drop from a high | −18.6% | −16.2% |
| Volatility (how much it swings) | 5.1% | 3.9% |
| Last 12 months | −1.8% | −1.1% |
| Last 3 years, per year | 5.1% | 4.4% |
| Last 5 years, per year | −0.3% | 0.2% |
| Last 10 years, per year | 1.4% | 1.4% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## BND and BNDX returns by year

| Year | BND | BNDX |
| --- | --- | --- |
| 2026 (part of the year) | −1.5% | −0.4% |
| 2025 | 7.1% | 2.9% |
| 2024 | 1.4% | 3.6% |
| 2023 | 5.7% | 8.8% |
| 2022 | −13.1% | −12.8% |
| 2021 | −1.9% | −2.3% |
| 2020 | 7.7% | 4.7% |
| 2019 | 8.8% | 7.9% |
| 2018 | 0.1% | 2.8% |
| 2017 | 4.0% | 2.4% |
| 2016 | 2.5% | 4.6% |
| 2015 | 0.6% | 1.2% |
| 2014 | 5.8% | 8.7% |
| 2013 (part of the year) | −1.0% | −0.5% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. BND's worst fall was −18.6%, from August 6, 2020 to October 20, 2022. By October 20, 2026 it had not yet climbed back to that high.

BNDX's worst fall was −16.2%, from December 11, 2020 to October 20, 2022. It got back to that high on February 17, 2026.

Their daily moves had a correlation of 0.73. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So they often move together, but not always.

## Why people choose BND or BNDX

**BND.** People who want the broad US bond market tend to pick BND.

**BNDX.** People who want to spread bond holdings beyond the US, without currency swings, tend to pick BNDX.

## Strategies that hold BND or BNDX

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds BND)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds BND)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds BND)
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019 (holds BND)
- [Three-Fund Portfolio (Taylor Larimore, Bogleheads)](https://tactfolio.com/strategies/three-fund-portfolio.md), by Taylor Larimore, 2018 (holds BND)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds BND)
- [Paul Novell's Tactical Bond Strategy](https://tactfolio.com/strategies/novell-tactical-bond-strategy.md), by Paul Novell, 2014 (holds BNDX)
- [Bond UI1 (Paul Novell’s unemployment bond strategy)](https://tactfolio.com/strategies/novell-bond-ui1.md), by Paul Novell, 2019 (holds BNDX)

## Other funds like BND and BNDX

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [BND alternatives](https://tactfolio.com/alternatives/BND.md) and [BNDX alternatives](https://tactfolio.com/alternatives/BNDX.md).

## Test a mix of BND and BNDX

Open the [builder](https://tactfolio.com/builder), add BND and BNDX, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [BND](https://tactfolio.com/etf/BND.md) and [BNDX](https://tactfolio.com/etf/BNDX.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What does hedged mean for BNDX?

BNDX uses currency contracts so that changes in the euro or yen against the dollar mostly do not move its value. What is left is the change in foreign bond prices.

### Do BND and BNDX overlap?

No. BND holds US bonds and BNDX holds bonds from outside the US.

### Which is cheaper, BND or BNDX?

BND costs less: 0.03% a year against 0.07%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, BND or BNDX?

From June 2013 to October 2026, BND returned about 1.8% a year and BNDX returned about 2.2% a year, with dividends reinvested. Their worst drops were −18.6% and −16.2%. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard Total Bond Market ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/bnd)
- [Vanguard: Vanguard Total International Bond ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/bndx)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.