ETF Versus

BND vs MDY

Vanguard Total Bond Market Index Fund vs State Street SPDR S&P MIDCAP 400 ETF Trust

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 3.92%. Launched in 2007, the fund has a 19-year track record.

AUM: $384.1B ER: 0.03% Yield: 3.92% Since: 2007-04-10
MDY State Street

State Street SPDR S&P MIDCAP 400 ETF Trust (MDY) is an exchange-traded fund issued by State Street that provides exposure to mid-cap U.S. companies balancing growth potential and stability. It charges a moderate expense ratio of 0.24%. The fund offers a moderate dividend yield of 1.15%. Launched in 1995, the fund has a 31-year track record.

AUM: $24.2B ER: 0.24% Yield: 1.15% Since: 1995-05-04

Quick Verdict

BND is significantly cheaper at 0.03% vs 0.24% expense ratio, saving you approximately $415 per $10,000 invested over 10 years. Over the past year, MDY has significantly outperformed with a 13.9% return vs 0.3%. Income investors may prefer BND for its higher yield (3.9% vs 1.1%).

Key Metrics

Metric BND MDY
Expense Ratio 0.03% 0.24%
Dividend Yield 3.9% 1.1%
Fund Family Vanguard State Street
Category US Aggregate Bond US Mid Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

80 92 104 116 128 140 2021-04 2022-06 2023-10 2024-12 2026-04
BND -13.1%
MDY +27.8%

Performance Comparison

Period BND MDY Difference
1 Month -1.30% -4.04% +2.74%
3 Months -0.61% +1.57% -2.18%
6 Months -0.74% +3.21% -3.95%
YTD -0.61% +1.57% -2.18%
1 Year +0.29% +13.95% -13.66%
3 Years -0.50% +35.56% -36.06%
5 Years -13.09% +27.83% -40.92%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees MDY Fees You Save
$10,000 10 years $60 $475 $415
$10,000 20 years $258 $2,028 $1,770
$10,000 30 years $835 $6,497 $5,662
$50,000 10 years $299 $2,375 $2,075
$50,000 30 years $4,176 $32,483 $28,308
$100,000 30 years $8,352 $64,967 $56,615

Risk Metrics

Based on 5 years of daily returns

Metric BND MDY
Annualized Volatility 6.0% 19.8%
Max Drawdown -21.7% -24.5%
Sharpe Ratio -1.18 0.12

Dividend Comparison

Metric BND MDY
Annual Dividend (per share) $2.89 $7.12
Dividend Yield 3.92% 1.15%
Distribution Frequency Monthly Quarterly

Top Holdings

0 of top 2 holdings overlap (0% overlap in top holdings)

BND Top Holdings

NameWeight
Vanguard Cmt Funds-Vanguard Market Liquidity Fund114.21%
United States Treasury Note/Bond37.98%

MDY Top Holdings

NameWeight
Ciena Corp102.57%
Coherent Corp90.18%
Lumentum Holdings Inc81.25%
Flex Ltd69.47%
Twilio Inc67.05%
United Therapeutics Corp65.23%
Pure Storage Inc65.05%
Casey's General Stores Inc63.89%
Curtiss-Wright Corp63.20%
Illumina Inc62.31%

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 MDY 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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