ETF Versus

BND vs EMB

Vanguard Total Bond Market Index Fund vs iShares J.P. Morgan USD Emerging Markets Bond 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
EMB

iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is an exchange-traded fund that provides exposure to emerging market bond securities. It charges an above-average expense ratio of 0.39%. The fund offers a high dividend yield of 5.10%. Launched in 2007, the fund has a 19-year track record.

AUM: $14.3B ER: 0.39% Yield: 5.10% Since: Dec 17, 2007

Quick Verdict

BND is significantly cheaper at 0.03% vs 0.39% expense ratio, saving you approximately $707 per $10,000 invested over 10 years. EMB has edged ahead over the past year (3.7% vs -0.0%). Income investors may prefer EMB for its higher yield (5.1% vs 3.9%).

Key Metrics

Metric BND EMB
Expense Ratio 0.03% 0.39%
Dividend Yield 3.9% 5.1%
Fund Family Vanguard N/A
Category US Aggregate Bond Emerging Market Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

70 77 84 91 98 105 2021-04 2022-06 2023-09 2024-12 2026-04
BND -13.3%
EMB -14.1%

Performance Comparison

Period BND EMB Difference
1 Month -1.63% -3.23% +1.60%
3 Months -0.84% -2.53% +1.69%
6 Months -1.20% -1.42% +0.22%
YTD -0.84% -2.53% +1.69%
1 Year -0.03% +3.74% -3.77%
3 Years -0.73% +8.84% -9.57%
5 Years -13.29% -14.09% +0.80%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees EMB Fees You Save
$10.000 10 years $60 $767 $707
$10.000 20 years $258 $3.253 $2.995
$10.000 30 years $835 $10.349 $9.514
$50.000 10 years $299 $3.835 $3.536
$50.000 30 years $4.176 $51.746 $47.570
$100.000 30 years $8.352 $103.492 $95.140

Risk Metrics

Based on 5 years of daily returns

Metric BND EMB
Annualized Volatility 6.0% 9.8%
Max Drawdown -21.7% -32.1%
Sharpe Ratio -1.19 -0.72

Dividend Comparison

Metric BND EMB
Annual Dividend (per share) $2.88 $4.78
Dividend Yield 3.92% 5.10%
Distribution Frequency Monthly Monthly

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 EMB if...

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

Choose EMB if...

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

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