ETF Versus

BND vs VOO

Vanguard Total Bond Market Index Fund vs Vanguard S&P 500 ETF

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
VOO Vanguard

Vanguard S&P 500 ETF (VOO) 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 0.03%. The fund offers a moderate dividend yield of 1.18%. Launched in 2010, the fund has a 16-year track record.

AUM: $792.0B ER: 0.03% Yield: 1.18% Since: Sep 7, 2010

Quick Verdict

Over the past year, VOO has significantly outperformed with a 16.8% return vs -0.0%. Income investors may prefer BND for its higher yield (3.9% vs 1.2%).

Key Metrics

Metric BND VOO
Expense Ratio 0.03% 0.03%
Dividend Yield 3.9% 1.2%
Fund Family Vanguard Vanguard
Category US Aggregate Bond US Large Cap Blend

Performance Chart

Indexed to 100 at start (5-year comparison)

80 99 118 137 156 175 2021-04 2022-06 2023-09 2024-12 2026-04
BND -13.3%
VOO +61.3%

Performance Comparison

Period BND VOO Difference
1 Month -1.63% -4.59% +2.96%
3 Months -0.84% -4.14% +3.30%
6 Months -1.20% -2.11% +0.91%
YTD -0.84% -4.14% +3.30%
1 Year -0.03% +16.77% -16.80%
3 Years -0.73% +59.52% -60.25%
5 Years -13.29% +61.27% -74.56%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees VOO 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 VOO
Annualized Volatility 6.0% 16.8%
Max Drawdown -21.7% -25.4%
Sharpe Ratio -1.19 0.39

Dividend Comparison

Metric BND VOO
Annual Dividend (per share) $2.88 $7.13
Dividend Yield 3.92% 1.18%
Distribution Frequency Monthly Quarterly

Top Holdings

VOO Top Holdings

NameWeight
NVIDIA CorporationNVDA7.31%
Apple Inc.AAPL6.63%
Microsoft CorporationMSFT4.96%
Amazon.com, Inc.AMZN3.47%
Broadcom Inc.AVGO2.56%
Alphabet Inc.GOOG2.46%
Meta Platforms, Inc.META2.40%
Tesla, Inc.TSLA1.92%
Berkshire Hathaway Inc.BRK.B1.57%

Which One Should You Choose?

Choose VOO 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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