ETF Versus

BND vs EFA

Vanguard Total Bond Market Index Fund vs iShares MSCI EAFE ETF

Last updated: 2026-04-02

BND Vanguard

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. Launched in 2007, the fund has a 19-year track record.

AUM: $150.4B ER: 0.03% Yield: 3.93% Since: Apr 3, 2007
EFA iShares

iShares MSCI EAFE ETF (EFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges an above-average expense ratio of 0.32%. The fund offers an attractive dividend yield of 3.29%. Launched in 2001, the fund has a 25-year track record.

AUM: $69.1B ER: 0.32% Yield: 3.29% Since: Aug 14, 2001

Quick Verdict

BND is significantly cheaper at 0.03% vs 0.32% expense ratio, saving you approximately $571 per $10,000 invested over 10 years. Over the past year, EFA has significantly outperformed with a 20.5% return vs -0.0%. Income investors may prefer BND for its higher yield (3.9% vs 3.3%).

Key Metrics

Metric BND EFA
Expense Ratio 0.03% 0.32%
Dividend Yield 3.9% 3.3%
Fund Family Vanguard iShares
Category US Aggregate Bond International Developed

Performance Chart

Indexed to 100 at start (5-year comparison)

70 84 98 112 126 140 2021-04 2022-06 2023-09 2024-12 2026-04
BND -13.3%
EFA +26.5%

Performance Comparison

Period BND EFA Difference
1 Month -1.63% -4.54% +2.91%
3 Months -0.84% +1.62% -2.46%
6 Months -1.20% +3.71% -4.91%
YTD -0.84% +1.62% -2.46%
1 Year -0.03% +20.48% -20.51%
3 Years -0.73% +36.79% -37.52%
5 Years -13.29% +26.46% -39.75%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees EFA Fees You Save
$10.000 10 years $60 $631 $571
$10.000 20 years $258 $2.686 $2.427
$10.000 30 years $835 $8.571 $7.736
$50.000 10 years $299 $3.156 $2.857
$50.000 30 years $4.176 $42.854 $38.678
$100.000 30 years $8.352 $85.707 $77.355

Risk Metrics

Based on 5 years of daily returns

Metric BND EFA
Annualized Volatility 6.0% 16.6%
Max Drawdown -21.7% -32.4%
Sharpe Ratio -1.19 0.10

Dividend Comparison

Metric BND EFA
Annual Dividend (per share) $2.88 $3.25
Dividend Yield 3.92% 3.29%
Distribution Frequency Monthly Semi-Annual or Annual

Top Holdings

EFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.54%
AstraZeneca PLC!lon/AZN1.46%
Novartis AG!swx/NOVN1.41%
Roche Holding AG!swx/ROP1.36%
HSBC Holdings plc!lon/HSBA1.36%
Shell plc!lon/SHEL1.31%
Nestlé S.A.!swx/NESN1.22%
Toyota Motor Corporation!tyo/72031.00%
Commonwealth Bank of Australia!asx/CBA0.99%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.95%

Which One Should You Choose?

Choose BND if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose EFA if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose BND if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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