ETF Versus

BND vs VO

Vanguard Total Bond Market Index Fund vs Vanguard Mid-Cap 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
VO Vanguard

Vanguard Mid-Cap Index Fund ETF Shares (VO) is an exchange-traded fund issued by Vanguard that provides exposure to mid-cap U.S. companies balancing growth potential and stability. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.50%. Launched in 2004, the fund has a 22-year track record.

AUM: $90.7B ER: 0.03% Yield: 1.50% Since: Jan 26, 2004

Quick Verdict

Over the past year, VO has significantly outperformed with a 11.4% return vs -0.0%. Income investors may prefer BND for its higher yield (3.9% vs 1.5%).

Key Metrics

Metric BND VO
Expense Ratio 0.03% 0.03%
Dividend Yield 3.9% 1.5%
Fund Family Vanguard Vanguard
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 2023-09 2024-12 2026-04
BND -13.3%
VO +27.8%

Performance Comparison

Period BND VO Difference
1 Month -1.63% -5.54% +3.91%
3 Months -0.84% -1.24% +0.40%
6 Months -1.20% -2.10% +0.90%
YTD -0.84% -1.24% +0.40%
1 Year -0.03% +11.38% -11.41%
3 Years -0.73% +37.24% -37.97%
5 Years -13.29% +27.84% -41.13%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees VO Fees You Save
$10.000 10 years $60 $60 $0
$10.000 20 years $258 $258 $0
$10.000 30 years $835 $835 $0
$50.000 10 years $299 $299 $0
$50.000 30 years $4.176 $4.176 $0
$100.000 30 years $8.352 $8.352 $0

Risk Metrics

Based on 5 years of daily returns

Metric BND VO
Annualized Volatility 6.0% 17.6%
Max Drawdown -21.7% -28.6%
Sharpe Ratio -1.19 0.11

Dividend Comparison

Metric BND VO
Annual Dividend (per share) $2.88 $4.33
Dividend Yield 3.92% 1.50%
Distribution Frequency Monthly Quarterly

Top Holdings

VO Top Holdings

NameWeight
Newmont CorporationNEM1.46%
Corning IncorporatedGLW1.20%
Howmet Aerospace Inc.HWM1.09%
Constellation Energy CorporationCEG1.06%
Vertiv Holdings CoVRT0.99%
Western Digital CorporationWDC0.99%
Seagate Technology Holdings plcSTX0.90%
Quanta Services, Inc.PWR0.87%
Cummins Inc.CMI0.83%
CRH plcCRH0.83%

Which One Should You Choose?

Choose VO 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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