BND vs VNQ
Vanguard Total Bond Market Index Fund vs Vanguard Real Estate Index Fund ETF Shares
Last updated: 2026-04-02
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.
Vanguard Real Estate Index Fund ETF Shares (VNQ) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges a low expense ratio of 0.13%. The fund offers an attractive dividend yield of 3.92%. Launched in 2004, the fund has a 22-year track record.
Quick Verdict
BND is significantly cheaper at 0.03% vs 0.13% expense ratio, saving you approximately $199 per $10,000 invested over 10 years. BND has edged ahead over the past year (-0.0% vs -1.7%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
VNQ Top Holdings
| Name | Weight |
|---|---|
| Vanguard Real Estate II Index Fund!mutf/VRTPX | 14.38% |
| Welltower Inc.WELL | 7.52% |
| Prologis, Inc.PLD | 7.08% |
| Equinix, Inc.EQIX | 5.11% |
| American Tower CorporationAMT | 4.80% |
| Simon Property Group, Inc.SPG | 3.56% |
| Realty Income CorporationO | 3.27% |
| Digital Realty Trust, Inc.DLR | 3.25% |
| Public StoragePSA | 2.59% |
| CBRE Group, Inc.CBRE | 2.35% |
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.