BND vs MGC
Vanguard Total Bond Market Index Fund vs Vanguard Mega Cap Index Fund
Last updated: 2026-04-02
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.
Vanguard Mega Cap Index Fund (MGC) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. equities across growth and value styles. It charges a very low expense ratio of 0.05%. The fund offers a moderate dividend yield of 1.02%. Launched in 2007, the fund has a 19-year track record.
Quick Verdict
BND has a slightly lower expense ratio (0.03% vs 0.05%), saving about $40 per $10,000 over 10 years. Over the past year, MGC has significantly outperformed with a 16.9% return vs 0.3%. Income investors may prefer BND for its higher yield (3.9% vs 1.0%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
BND Top Holdings
| Name | Weight |
|---|---|
| Vanguard Cmt Funds-Vanguard Market Liquidity Fund | 114.21% |
| United States Treasury Note/Bond | 37.98% |
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 MGC 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.