Average Daily Volume
6.93M
Fund Overview
The Vanguard Total Bond Market ETF (BND) is designed to provide broad exposure to U.S. investment-grade bonds. It tracks the performance of the Bloomberg Barclays U.S. Aggregate Float Adjusted Index, which includes U.S. Treasury bonds, government agency bonds, corporate bonds, and mortgage-backed securities (MBS) with maturities of at least one year. BND offers investors a low-cost way to diversify their fixed-income portfolio across various sectors of the bond market. With its extensive holdings and low expense ratio, BND is a popular choice for investors seeking stable income and capital preservation.
- Asset Class
-
Bond
- Industry
-
Corporate Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.41 %
- Currency Hedged
-
No
- Portfolio Turnover
-
36 %
- Dividend Date
-
Why Invest in the BND ETF?
Potential Benefits
- Diversification across U.S. investment-grade bonds, including Treasuries, corporates, and MBS.
- Low expense ratio (0.03% as of 2025), making it cost-effective for long-term investors.
- Provides steady income through regular interest payments.
- Helps reduce portfolio volatility due to bonds' lower correlation with equities.
- Liquidity is high, as BND is one of the most traded bond ETFs.
Potential Risks
- Interest rate risk: Rising rates can lead to declining bond prices.
- Credit risk: Although investment-grade, some holdings may face downgrades or defaults.
- Inflation risk: Fixed coupon payments may lose purchasing power over time.
- Limited yield in low-interest-rate environments.
- Mortgage-backed securities may carry prepayment risk.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.2%
|
+1.6%
|
-1.7%
|
+0.1%
|
+0.3%
|
+0.3%
|
-1.3%
|
+0.4%
|
-2.6%
|
+0.2%
|
-
|
-
|
| 2025 |
+0.6%
|
+2.2%
|
0.0%
|
+0.4%
|
-0.7%
|
+1.5%
|
-0.3%
|
+1.2%
|
+1.1%
|
+0.6%
|
+0.6%
|
-0.3%
|
| 2024 |
-0.2%
|
-1.4%
|
+0.8%
|
-2.4%
|
+1.7%
|
+0.9%
|
+2.4%
|
+1.5%
|
+1.3%
|
-2.5%
|
+1.1%
|
-1.7%
|
| 2023 |
+3.3%
|
-2.7%
|
+2.7%
|
+0.6%
|
-1.2%
|
-0.2%
|
-0.1%
|
-0.7%
|
-2.5%
|
-1.5%
|
+4.5%
|
+3.6%
|
| 2022 |
-2.1%
|
-1.1%
|
-2.8%
|
-3.8%
|
+0.8%
|
-1.7%
|
+2.4%
|
-2.8%
|
-4.2%
|
-1.2%
|
+3.7%
|
-0.8%
|
| 2021 |
-0.9%
|
-1.5%
|
-1.3%
|
+0.9%
|
+0.2%
|
+0.9%
|
+1.2%
|
-0.2%
|
-1.0%
|
+0.1%
|
+0.2%
|
-0.3%
|
| 2020 |
+2.0%
|
+1.7%
|
-1.4%
|
+2.8%
|
+0.7%
|
+0.7%
|
+1.5%
|
-0.9%
|
-0.1%
|
-0.6%
|
+1.2%
|
+0.2%
|
| 2019 |
+1.1%
|
-0.1%
|
+1.9%
|
0.0%
|
+1.8%
|
+1.2%
|
+0.2%
|
+2.8%
|
-0.6%
|
+0.3%
|
0.0%
|
-0.1%
|
| 2018 |
-1.2%
|
-1.0%
|
+0.7%
|
-0.9%
|
+0.7%
|
0.0%
|
0.0%
|
+0.7%
|
-0.5%
|
-0.9%
|
+0.6%
|
+1.9%
|
| 2017 |
+0.2%
|
+0.6%
|
0.0%
|
+0.8%
|
+0.7%
|
+0.1%
|
+0.4%
|
+0.9%
|
-0.5%
|
0.0%
|
-0.1%
|
+0.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: BND vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
BND seeks to track the Bloomberg Barclays U.S. Aggregate Float Adjusted Index, a market-cap-weighted benchmark representing the U.S. investment-grade bond market. The index includes government, corporate, and securitized bonds with maturities of at least one year. The ETF is passively managed, meaning it aims to replicate the index's performance rather than actively selecting securities. BND primarily holds individual bonds rather than derivatives, providing direct exposure to the underlying assets. The fund is rebalanced periodically to align with index changes, ensuring consistency with its benchmark.
Frequently Asked Questions
Does BND pay dividends?
Yes, BND distributes monthly dividends derived from the interest payments of its underlying bond holdings.
How does BND differ from a Treasury-only ETF?
BND includes Treasuries but also holds corporate bonds and mortgage-backed securities, offering broader diversification than a Treasury-only ETF.
Is BND suitable for retirees?
BND can be a good option for retirees seeking income and capital preservation, though they should assess interest rate and inflation risks.
What is the average duration of BND?
As of 2025, BND has an average duration of around 6-7 years, meaning it is moderately sensitive to interest rate changes.
Industry Overview
The Vanguard Total Bond Market ETF (BND) provides exposure to the broad U.S. investment-grade bond market, which is a cornerstone of diversified portfolios. Bonds are often used for income generation, capital preservation, and risk mitigation in volatile equity markets. The U.S. bond market is influenced by macroeconomic factors such as interest rates, inflation, and Federal Reserve policy. BND's inclusion of Treasuries, corporates, and MBS allows investors to participate in the stability and income potential of fixed-income securities while maintaining liquidity and low costs.
Alternative Comparison
Compared to its closest peer, the iShares Core U.S. Aggregate Bond ETF (AGG), BND offers a nearly identical portfolio but with a slightly lower expense ratio (0.03% vs. 0.04%). Both funds track the same Bloomberg Barclays U.S. Aggregate Index, making them highly similar in composition. For investors seeking global bond exposure, BNDX (Vanguard Total International Bond ETF) or BNDW (Vanguard Total World Bond ETF) may be alternatives. However, BND remains a top choice for pure U.S. investment-grade bond exposure due to its cost efficiency and liquidity.
Issuer Overview
Vanguard is one of the largest and most trusted asset managers globally, known for its low-cost index funds and ETFs. Founded by John C. Bogle, Vanguard pioneered passive investing and remains a leader in providing accessible, low-fee investment products. The firm's client-owned structure aligns its interests with those of investors, emphasizing long-term value over short-term profits.
Conclusion
BND is a core holding for investors seeking diversified exposure to the U.S. investment-grade bond market. Its low cost, broad diversification, and strong liquidity make it a staple in many portfolios. While bond ETFs carry risks such as interest rate sensitivity, BND's structure and Vanguard's stewardship provide a reliable way to access fixed-income markets. Investors should consider their risk tolerance and investment horizon when including BND in their asset allocation.
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