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<h2>Key Points</h2><ul><li>Both funds charge the same ultra-low expense ratio, but the Vanguard Total Bond Market ETF is much larger by assets under management.</li><li>The Vanguard Total Bond Market ETF delivered a slightly higher 1-year return and yield, but also showed a deeper five-year drawdown.</li><li>The Vanguard Total Bond Market ETF holds a broader mix of investment-grade bonds, while Vanguard Intermediate-Term Treasury ETF focuses only on U.S. Treasuries.</li><li>10 stocks we like better than Vanguard Total Bond Market ETF ›</li></ul><p>The <strong>Vanguard Total Bond Market ETF</strong> <span class="ticker">(NASDAQ:BND)</span> and <strong>Vanguard Intermediate-Term Treasury ETF</strong> <span class="ticker">(NASDAQ:VGIT)</span> look similar on fees, but BND is far bigger, covers more of the bond market, and has delivered a modest edge in recent returns and yield, while VGIT sticks strictly to U.S. Treasuries and has seen less volatility.</p><p>Both BND and VGIT are popular bond ETFs from Vanguard, each aiming to provide income and diversification for portfolios. BND casts a wider net across the investment-grade U.S. bond market, while VGIT focuses solely on intermediate-term U.S. Treasuries. This comparison unpacks their differences in cost, performance, risk, and portfolio makeup to help investors decide which approach may better suit their needs.</p><h2 id="snapshot-cost-amp-size">Snapshot (cost &amp; size)</h2><section><table><tbody><tr><th>Metric</th><th>VGIT</th><th>BND</th></tr><tr><td>Issuer</td><td>Vanguard</td><td>Vanguard</td></tr><tr><td>Expense ratio</td><td>0.03%</td><td>0.03%</td></tr><tr><td>1-yr return (as of 2026-04-09)</td><td>4.6%</td><td>5.5%</td></tr><tr><td>Dividend yield</td><td>3.8%</td><td>3.9%</td></tr><tr><td>Beta</td><td>0.80</td><td>0.98</td></tr><tr><td>AUM</td><td>$48.47 billion</td><td>$387.46 billion</td></tr></tbody></table></section><p><em>Beta measures price volatility relative to the S&amp;P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.</em></p><p>Both funds are equally affordable with identical 0.03% expense ratios, but BND has a slight edge in yield, offering a 3.9% payout versus VGIT’s 3.8%.</p><h2 id="performance-amp-risk-comparison">Performance &amp; risk comparison</h2><section><table><tbody><tr><th>Metric</th><th>VGIT</th><th>BND</th></tr><tr><td>Max drawdown (5 y)</td><td>(15.03%)</td><td>(17.93%)</td></tr><tr><td>Growth of $1,000 over 5 years</td><td>$1,018</td><td>$1,016</td></tr></tbody></table></section><p></p><h2 id="whatx27s-inside">What's inside</h2><p>The Vanguard Total Bond Market ETF provides exposure to the full U.S. investment-grade bond universe, holding 346 different securities as of its 19th year. Its largest positions include U.S. Dollar cash and a mix of U.S. Treasury notes, but the fund also invests in mortgage-backed and corporate bonds, providing diversified credit and interest rate risk. The fund’s cash &amp; others sector exposure reflects its broad, market-weighted approach, and its top holdings are relatively small compared to its overall size.</p><p>In contrast, VGIT is anchored exclusively in U.S. Treasury bonds, with 76 holdings focused on intermediate maturities. Its top holdings are recent Treasury note issues, and the fund’s cash &amp; others sector exposure simply reflects its government-only portfolio. VGIT does not include corporate or mortgage-backed debt, so its credit risk is minimal compared to BND’s broader exposure.</p><p>For more guidance on ETF investing, check out the full guide at this link.</p><h2 id="what-this-means-for-investors">What this means for investors</h2><p>Although the Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Treasury ETF (VGIT) are both low-cost bond funds, each fulfills different investor goals.</p><p>Because VGIT concentrates only on U.S. Treasury bonds, it offers ultra-low risk and stability to a portfolio, as demonstrated by its lower max drawdown compared to BND. It is a particularly attractive choice if you believe the stock market will experience a downturn, acting as a defensive play. That’s because U.S. Treasury bonds tend to rise or hold their value during stock market volatility.</p><p>BND is for investors who have a “set it and forget it” mindset. It can act as a core bond fund to hold over the long term. Its far larger $387.46 billion assets under management and broader holdings make it highly diversified, which helps it deliver a higher yield than VGIT. This is evidenced in its greater one-year return. It’s a solid choice to add all-around bond exposure to your portfolio.</p><h2>Should you buy stock in Vanguard Total Bond Market ETF right now?</h2>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of April 11, 2026. </em></p><p><em>Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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VGIT

<p>The Vanguard Total Bond Market ETF (BND) and Vanguard Intermediate-Term Treasury ETF (VGIT) are both low-cost bond funds with identical expense ratios of 0.03%. BND, with $387.46 billion in assets, offers a broader mix of investment-grade bonds and a higher yield of 3.9%, compared to VGIT's 3.8%. While BND has a slightly better one-year return, VGIT provides lower volatility and risk due to its exclusive focus on U.S. Treasuries. Investors should consider their goals when choosing between these two ETFs, as BND is more diversified while VGIT offers stability during market downturns.</p>

Better Vanguard Bond ETF: BND vs. VGIT