What is the expense ratio of BND vs IWM?

BND has an expense ratio of 0.03%, while IWM has an expense ratio of 0.19%.

BND vs IWM

Vanguard Total Bond Market Index Fund vs iShares Russell 2000 ETF

Last updated: 2026-04-08

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund 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 3.92%. Launched in 2007, the fund has a 19-year track record.

AUM: $151.4B ER: 0.03% Yield: 3.92% Since: Apr 3, 2007

IWM

iShares Russell 2000 ETF (IWM) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a moderate expense ratio of 0.19%. The fund offers a moderate dividend yield of 1.00%. Launched in 2000, the fund has a 26-year track record.

AUM: $71.9B ER: 0.19% Yield: 1.00% Since: May 22, 2000

Quick Verdict

BND is significantly cheaper at 0.03% vs 0.19% expense ratio, saving you approximately $317 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 44.4% return vs 1.3%. Income investors may prefer BND for its higher yield (3.9% vs 1.0%).

Key Metrics

Metric	BND	IWM
Expense Ratio	0.03%	0.19%
Dividend Yield	3.9%	1.0%
Fund Family	N/A	N/A
Category	US Aggregate Bond	US Small Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

BND -13.6%

IWM +13.4%

Performance Comparison

Period	BND	IWM	Difference
1 Month	-1.32%	-0.50%	-0.82%
3 Months	-0.89%	-2.29%	+1.40%
6 Months	-1.41%	+6.13%	-7.54%
YTD	-0.77%	+1.44%	-2.21%
1 Year	+1.32%	+44.35%	-43.03%
3 Years	-0.64%	+43.59%	-44.23%
5 Years	-13.51%	+13.37%	-26.88%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	BND Fees	IWM Fees	You Save
$10,000	10 years	$60	$377	$317
$10,000	20 years	$258	$1,613	$1,355
$10,000	30 years	$835	$5,178	$4,342
$50,000	10 years	$299	$1,884	$1,585
$50,000	30 years	$4,176	$25,888	$21,712
$100,000	30 years	$8,352	$51,776	$43,424

Risk Metrics

Based on 5 years of daily returns

Metric	BND	IWM
Annualized Volatility	6.0%	22.6%
Max Drawdown	-21.7%	-33.1%
Sharpe Ratio	-1.20	0.03

Dividend Comparison

Metric	BND	IWM
Annual Dividend (per share)	$2.89	$2.54
Dividend Yield	3.93%	1.01%
Distribution Frequency	Monthly	Quarterly

Top Holdings

IWM Top Holdings

Name	Weight
Bloom Energy CorporationBE	0.99%
FabrinetFN	0.67%
COEUR MINING INCCDE.NE	0.63%
EchoStar CorporationSATS	0.57%
Credo Technology Group Holding LtdCRDO	0.55%
Nextpower Inc.NXT	0.53%
Kratos Defense & Security Solutions, Inc.KTOS	0.45%
Advanced Energy Industries, Inc.AEIS	0.42%
Hecla Mining CompanyHL	0.41%
Sterling Infrastructure, Inc.STRL	0.39%

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 IWM 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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