ETF Versus

BND vs XLI

Vanguard Total Bond Market Index Fund vs State Street Industrial Select Sector SPDR 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 3.92%. Launched in 2007, the fund has a 19-year track record.

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

State Street Industrial Select Sector SPDR ETF (XLI) is an exchange-traded fund issued by State Street that provides exposure to us sector - industrials securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.25%. Launched in 1998, the fund has a 28-year track record.

AUM: $25.6B ER: 0.09% Yield: 1.25% Since: 1998-12-22

Quick Verdict

BND has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. Over the past year, XLI has significantly outperformed with a 23.4% return vs 0.3%. Income investors may prefer BND for its higher yield (3.9% vs 1.3%).

Key Metrics

Metric BND XLI
Expense Ratio 0.03% 0.09%
Dividend Yield 3.9% 1.3%
Fund Family Vanguard State Street
Category US Aggregate Bond US Sector - Industrials

Performance Chart

Indexed to 100 at start (5-year comparison)

80 100 120 140 160 180 2021-04 2022-06 2023-10 2024-12 2026-04
BND -13.1%
XLI +64.2%

Performance Comparison

Period BND XLI Difference
1 Month -1.30% -6.38% +5.08%
3 Months -0.61% +3.96% -4.57%
6 Months -0.74% +5.87% -6.61%
YTD -0.61% +3.96% -4.57%
1 Year +0.29% +23.44% -23.15%
3 Years -0.50% +62.04% -62.54%
5 Years -13.09% +64.24% -77.33%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees XLI Fees You Save
$10,000 10 years $60 $179 $119
$10,000 20 years $258 $771 $512
$10,000 30 years $835 $2,486 $1,650
$50,000 10 years $299 $896 $597
$50,000 30 years $4,176 $12,428 $8,252
$100,000 30 years $8,352 $24,855 $16,503

Risk Metrics

Based on 5 years of daily returns

Metric BND XLI
Annualized Volatility 6.0% 17.2%
Max Drawdown -21.7% -22.7%
Sharpe Ratio -1.18 0.40

Dividend Comparison

Metric BND XLI
Annual Dividend (per share) $2.89 $2.05
Dividend Yield 3.92% 1.25%
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%

XLI Top Holdings

NameWeight
General Electric Co680.74%
Caterpillar Inc561.69%
RTX Corp515.19%
GE Vernova Inc371.52%
Boeing Co/The356.20%
Uber Technologies Inc355.71%
Union Pacific Corp287.47%
Honeywell International Inc259.50%
Eaton Corp PLC259.19%
Deere & Co245.23%

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 XLI 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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