ETF Versus

BND vs VIG

Vanguard Total Bond Market Index Fund vs Vanguard Dividend Appreciation Index Fund ETF Shares

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
VIG Vanguard

Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.60%. Launched in 2006, the fund has a 20-year track record.

AUM: $97.2B ER: 0.04% Yield: 1.60% Since: Apr 21, 2006

Quick Verdict

Both funds have nearly identical expense ratios (0.03% vs 0.04%), so fees are not a differentiator here. Over the past year, VIG has significantly outperformed with a 11.4% return vs -0.0%. Income investors may prefer BND for its higher yield (3.9% vs 1.6%).

Key Metrics

Metric BND VIG
Expense Ratio 0.03% 0.04%
Dividend Yield 3.9% 1.6%
Fund Family Vanguard Vanguard
Category US Aggregate Bond US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

80 95 110 125 140 155 2021-04 2022-06 2023-09 2024-12 2026-04
BND -13.3%
VIG +43.7%

Performance Comparison

Period BND VIG Difference
1 Month -1.63% -5.05% +3.42%
3 Months -0.84% -2.23% +1.39%
6 Months -1.20% -0.97% -0.23%
YTD -0.84% -2.23% +1.39%
1 Year -0.03% +11.38% -11.41%
3 Years -0.73% +39.10% -39.83%
5 Years -13.29% +43.71% -57.00%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees VIG Fees You Save
$10.000 10 years $60 $80 $20
$10.000 20 years $258 $344 $86
$10.000 30 years $835 $1.112 $277
$50.000 10 years $299 $399 $100
$50.000 30 years $4.176 $5.560 $1.385
$100.000 30 years $8.352 $11.121 $2.769

Risk Metrics

Based on 5 years of daily returns

Metric BND VIG
Annualized Volatility 6.0% 14.3%
Max Drawdown -21.7% -21.5%
Sharpe Ratio -1.19 0.27

Dividend Comparison

Metric BND VIG
Annual Dividend (per share) $2.88 $3.45
Dividend Yield 3.92% 1.60%
Distribution Frequency Monthly Quarterly

Top Holdings

VIG Top Holdings

NameWeight
Broadcom Inc.AVGO5.92%
Apple Inc.AAPL3.89%
Eli Lilly and CompanyLLY3.70%
Microsoft CorporationMSFT3.45%
JPMorgan Chase & Co.JPM3.42%
Exxon Mobil CorporationXOM2.87%
Johnson & JohnsonJNJ2.65%
Walmart Inc.WMT2.48%
Visa Inc.V2.23%
Costco Wholesale CorporationCOST1.98%

Which One Should You Choose?

Choose VIG 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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