Vanguard Total Bond Market ETF

Frequently Asked Questions About BND

What does BND invest in?

This fund aims to replicate the overall performance of a comprehensive, market-capitalization-weighted bond index. It provides extensive exposure to the U.S. domestic, taxable, investment-grade fixed-income market, specifically excluding bonds that are inflation-protected or tax-exempt. Investors can anticipate a robust potential for generating income, while also experiencing relatively modest fluctuations in its share value. The fund is particularly suitable for individuals with medium to long-term financial objectives who are seeking a consistent and reliable stream of income. Moreover, it serves as an effective tool for enhancing portfolio diversification and cushioning against the volatility typically associated with stock investments.

What is the expense ratio of BND?

Vanguard Total Bond Market ETF (BND) charges an expense ratio of 0.03%. This is the annual fee deducted from fund assets to cover management and operations.

What is BND's dividend yield?

BND's trailing-twelve-month yield is 4.12%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of BND?

Effective duration measures BND's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. BND's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of BND?

BND's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of BND?

Yield to maturity (YTM) is the total return you'd earn from BND if every bond in the portfolio is held to maturity at the current price. BND's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.