BND vs BNDX: The US Bond Core vs the International Add-On
BND is the standard US bond holding most portfolios start with. BNDX adds international bonds with the currency risk hedged away. They are usually held together, not chosen between.
BND holds the broad US investment-grade bond market, around 17,000 government and corporate bonds, and charges 0.03%. It is the default bond core for most US investors. BNDX holds international investment-grade bonds and hedges the currency back to the US dollar, which removes most of the exchange-rate swings, and charges 0.07%. The two are not really competitors. BND covers US bonds; BNDX covers the bonds BND leaves out, everything issued outside the US. Vanguard's own target-date funds hold both, with US bonds as the larger slice and international bonds as a diversifier. For a simple portfolio, BND alone is a perfectly complete bond holding, and many investors stop there. If you want your bond exposure as globally diversified as your stocks, BNDX is the piece you add, not a swap for BND. The currency hedge is the key feature: it is what keeps an international bond fund behaving like bonds rather than a currency bet.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. How the major brokerages compare →
📋 BND vs BNDX — Key Facts Side by Side
| Metric | BND | BNDX |
|---|---|---|
| Fund Name | Vanguard Total Bond Market Index Fund | Vanguard Total International Bond Index Fund |
| Issuer | Vanguard | Vanguard |
| Tracks Index | Bloomberg US Aggregate Bond | Bloomberg Global Aggregate ex-USD (Hedged) |
| Expense Ratio | 0.03% ✓ | 0.07% |
| Cost per $10K/yr | $3.00 | $7.00 |
| AUM | $397.9B | $123.3B |
| Holdings | 17,000 | 6,800 |
| Inception | 2007 | 2013 |
| 1-Year Return | -1.19% | -3.13% |
| 3-Year Return | +3.61% | +3.77% |
| 5-Year Return | -0.37% | -0.06% |
| Dividend Yield | 3.95% | 4.46% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.02% |
Expense ratio, AUM, and returns updated Jul 26, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 BND vs BNDX — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$4/yr per $10K vs BNDX
- want broader diversification (17,000 holdings vs 6,800)
- want income and stability with lower portfolio volatility
- want income and stability with lower portfolio volatility
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ BND vs BNDX — Frequently Asked Questions
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