ETF Versus

BND vs SCHZ

Vanguard Total Bond Market Index Fund vs Schwab U.S. Aggregate Bond ETF

Last updated: 2026-04-10

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: $152.0B ER: 0.03% Yield: 3.92% Since: Apr 3, 2007
SCHZ Schwab

Schwab U.S. Aggregate Bond ETF (SCHZ) is an exchange-traded fund issued by Schwab 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 a high dividend yield of 4.09%. Launched in 2011, the fund has a 15-year track record.

AUM: $10.0B ER: 0.03% Yield: 4.09% Since: Jul 14, 2011

Quick Verdict

Both funds have delivered similar 1-year returns (2.2% vs 2.2%), tracking closely.

Key Metrics

Metric BND SCHZ
Expense Ratio 0.03% 0.03%
Dividend Yield 3.9% 4.1%
Fund Family Vanguard Schwab
Category US Aggregate Bond US Aggregate Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

75 81 87 93 99 105 2021-04 2022-07 2023-10 2025-01 2026-04
BND -13.3%
SCHZ -14.1%

Performance Comparison

Period BND SCHZ Difference
1 Month -0.29% -0.26% -0.03%
3 Months -0.73% -0.81% +0.08%
6 Months -1.29% -1.27% -0.02%
YTD -0.49% -0.56% +0.07%
1 Year +2.18% +2.20% -0.02%
3 Years -0.40% -1.09% +0.69%
5 Years -13.25% -14.05% +0.80%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees SCHZ 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 SCHZ
Annualized Volatility 6.0% 6.1%
Max Drawdown -21.7% -21.9%
Sharpe Ratio -1.19 -1.20

Dividend Comparison

Metric BND SCHZ
Annual Dividend (per share) $2.89 $0.95
Dividend Yield 3.92% 4.09%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Either works if...

you just need broad us aggregate bond exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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