Vanguard Total Bond Market ETF (BND): Complete Beginner's Guide
Vanguard Total Bond Market ETF (BND) is a u.s. intermediate-term bond ETF from Vanguard with an expense ratio of 0.03% and $116.0B in assets under management. Our Beginner Suitability Score: 10/10 (Great for Beginners). 5-year annualized return: -0.50%.
Last updated: April 2026
Vanguard • U.S. Intermediate-Term Bond
Expense Ratio
0.03%
AUM
$116.0B
Dividend Yield
4.30%
Inception
2007
Beginner Score
10/10
What is Vanguard Total Bond Market ETF?
BND provides exposure to the entire U.S. investment-grade bond market, including government, corporate, and mortgage-backed bonds. Bonds generally provide stability and income to a portfolio, acting as a cushion when stocks decline. Beginners often add BND to their portfolio to reduce overall volatility and provide steady income, with the typical rule of thumb being to hold your age in bonds as a percentage of your portfolio.
BND is managed by Vanguard and has been available since 2007. With $116.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
BND at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 11,286 |
| P/E Ratio | N/A |
| Beta | 0.03 |
| Dividend Yield | 4.30% |
| AUM | $116.0B |
| Inception Year | 2007 |
| Issuer | Vanguard |
Top 10 Holdings in BND
BND holds 11,286 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury Bonds (Various) | UST | 46.10% |
| 2 | Government Mortgage-Backed Securities | MBS | 26.80% |
| 3 | Corporate Bonds (Investment Grade) | CORP | 18.50% |
| 4 | Foreign Government Bonds (USD) | FGOV | 3.80% |
| 5 | Asset-Backed Securities | ABS | 1.40% |
| 6 | Commercial Mortgage-Backed | CMBS | 1.20% |
| 7 | Municipal Bonds | MUNI | 0.80% |
| 8 | Supranational Bonds | SUPRA | 0.60% |
| 9 | Taxable Municipal Bonds | TMUNI | 0.50% |
| 10 | Other Government Related | OGOV | 0.30% |
BND's top holding is U.S. Treasury Bonds (Various) (UST) at 46.10%, followed by Government Mortgage-Backed Securities (MBS) at 26.80% and Corporate Bonds (Investment Grade) (CORP) at 18.50%. The top 10 holdings account for 100.00% of the fund's 11,286 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury Bonds (Various) | UST | 46.10% |
| 2 | Government Mortgage-Backed Securities | MBS | 26.80% |
| 3 | Corporate Bonds (Investment Grade) | CORP | 18.50% |
| 4 | Foreign Government Bonds (USD) | FGOV | 3.80% |
| 5 | Asset-Backed Securities | ABS | 1.40% |
| 6 | Commercial Mortgage-Backed | CMBS | 1.20% |
| 7 | Municipal Bonds | MUNI | 0.80% |
| 8 | Supranational Bonds | SUPRA | 0.60% |
| 9 | Taxable Municipal Bonds | TMUNI | 0.50% |
| 10 | Other Government Related | OGOV | 0.30% |
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BND Performance History
Here's how BND has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
0.50%
1 Year
3.20%
3 Year
-1.80%
5 Year
-0.50%
10 Year
1.40%
BND has returned -0.50% annualized over 5 years and 1.40% over 10 years. YTD return is 0.50%.
View data table
| Period | Return |
|---|---|
| YTD | 0.50% |
| 1 Year | 3.20% |
| 3 Year | -1.80% |
| 5 Year | -0.50% |
| 10 Year | 1.40% |
Beginner Suitability Score: 10/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
BND scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 11,286 holdings, and has been available since 2007, giving it a proven track record.
How to Buy BND — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "BND" — Use the search bar in your brokerage platform to find Vanguard Total Bond Market ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
BND Sector Allocation
Here's how BND distributes its investments across different sectors of the economy:
BND's largest sector allocation is U.S. Government at 46.1%, followed by Government Mortgage-Backed at 26.8% and Investment-Grade Corporate at 18.5%.
View data table
| Sector | Weight |
|---|---|
| U.S. Government | 46.1% |
| Government Mortgage-Backed | 26.8% |
| Investment-Grade Corporate | 18.5% |
| Foreign Government | 3.8% |
| Asset-Backed Securities | 1.4% |
| Commercial MBS | 1.2% |
| Other | 2.2% |
Dollar Cost Averaging Into BND
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With BND's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
BND's expense ratio of 0.03% costs $259 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,351.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,673 | $20 |
| 10 | $21,589 | $21,529 | $60 |
| 15 | $31,722 | $31,590 | $132 |
| 20 | $46,610 | $46,351 | $259 |
Pros and Cons of BND
Pros
- ✓Ultra-low 0.03% expense ratio makes it the cheapest way to own the U.S. bond market
- ✓Over 11,000 bond holdings provide exceptional diversification across bond types
- ✓Very low correlation with stocks helps stabilize portfolio during equity market downturns
- ✓Monthly dividend payments provide reliable income
Cons
- ✗Bond prices fall when interest rates rise, as seen in the 2022-2023 rate hiking cycle
- ✗Returns have been poor over the past 3-5 years due to the rapid rise in interest rates
- ✗Yields may not keep pace with inflation during high-inflation periods
BND vs Similar ETFs
See how BND stacks up against similar funds:
Frequently Asked Questions
Is BND a good ETF for beginners?▾
BND has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of BND?▾
BND has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in BND?▾
You can invest in BND with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does BND pay dividends?▾
Yes, BND pays dividends with a current yield of approximately 4.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in BND?▾
The top holdings in BND include U.S. Treasury Bonds (Various) (46.10%), Government Mortgage-Backed Securities (26.80%), Corporate Bonds (Investment Grade) (18.50%), and more. The fund holds 11,286 total positions, providing broad diversification across many companies.
What sectors does BND invest in?▾
BND's largest sector allocations are U.S. Government (46.10%), Government Mortgage-Backed (26.80%), Investment-Grade Corporate (18.50%). This sector distribution shows a focus on u.s. government stocks.
How much do BND's fees cost over time?▾
With an expense ratio of 0.03%, a $10,000 investment in BND would lose approximately $258 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.