At a glance
BND charges 0.03% a year, below the 0.2% average of the 7 funds most like it (the cheapest of 8). It has $397.11B in assets, the largest of that group; it paid 4.12% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.4% with distributions reinvested, 4th of those 8 funds; over three years it returned +4.7% a year. At its worst it fell 8.7% in the 2020 crash (S&P 500: 33.7%) and 14.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 36 months after the lows. Its ten largest positions make up 4.1% of the fund, out of 17,408 in all.
The short version
Vanguard Total Bond Market ETF (BND) tracks the Bloomberg U.S. Aggregate Float Adjusted Index, a broad measure of higher-quality, taxable US bonds: Treasuries, corporate bonds and mortgage-backed securities. Its 0.03% annual fee ties for the lowest among similar funds, and with 17,408 holdings as of June 30, 2026, no single bond made up 0.5% of assets. The trade-off is that its price tends to fall when interest rates rise; it lost 13.15% in 2022.
Price history
The interactive chart needs JavaScript.
BND -0.4% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BND official prospectus, to Dec 31, 2025 | — | +7.11% | — | -0.40% | +2.00% | — |
| BND price data to Nov 2, 2026 | -0.7% | -0.4% | +4.7% | -0.3% | +1.4% | +2.9% |
- Over the year to Nov 2, 2026, BND returned -0.4%, 4th of 8 among similar funds.
- Its 5-year annualized return was -0.3% and its 10-year +1.4%.
- In the 2020 COVID crash it fell 8.7% and regained its old high 2.3 months after the low.
- Its worst full calendar year was 2022 (-13.1%); its best was 2019 (+8.8%).
- The deepest fall in its price history was 18.6% (Aug 6, 2020 to Oct 20, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.7% | — |
| 2025 | +7.1% | +7.11% |
| 2024 | +1.4% | +1.34% |
| 2023 | +5.6% | +5.70% |
| 2022 | -13.1% | -13.15% |
| 2021 | -1.9% | -1.66% |
| 2020 | +7.7% | +7.71% |
| 2019 | +8.8% | +8.71% |
| 2018 | +0.1% | -0.04% |
| 2017 | +3.6% | — |
| 2016 | +2.5% | — |
| 2015 | +0.6% | — |
| 2014 | +5.8% | — |
| 2013 | -2.1% | — |
| 2012 | +3.9% | — |
| 2011 | +7.9% | — |
| 2010 | +6.2% | — |
| 2009 | +3.6% | — |
| 2008 | +6.9% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 7.5% over that stretch · deepest drop along the way 9.3%, back to its old high 2.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 1.4% over that stretch · deepest drop along the way 8.7%, back to its old high 2.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.5% over that stretch · deepest drop along the way 14.6%, back to its old high 36.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.2100 | |
| 2025 | $2.8600 | +8.7% |
| 2024 | $2.6300 | +16.4% |
| 2023 | $2.2600 | +20.9% |
| 2022 | $1.8700 | +4.5% |
| 2021 | $1.7900 | -13.9% |
| 2020 | $2.0800 | -8.4% |
| 2019 | $2.2700 | -5.7% |
| 2018 | $2.4084 | +16.3% |
| 2017 | $2.0700 | +2.0% |
| 2016 | $2.0300 | -2.4% |
| 2015 | $2.0800 | -9.2% |
| 2014 | $2.2900 | +2.2% |
| 2013 | $2.2400 | -16.7% |
| 2012 | $2.6900 | -9.7% |
| 2011 | $2.9800 | -5.1% |
| 2010 | $3.1400 | -0.6% |
| 2009 | $3.1600 | -10.2% |
| 2008 | $3.5200 |
Living on BND: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Jun 30, 2026, the fund held 17,408 securities; the ten largest made up 4.11% of assets.
| Holding | Weight | |
|---|---|---|
| United States Treasury Note/Bond Bonds and notes | 0.47% | |
| United States Treasury Note/Bond Bonds and notes | 0.41% | |
| United States Treasury Note/Bond Bonds and notes | 0.41% | |
| United States Treasury Note/Bond Bonds and notes | 0.41% | |
| United States Treasury Note/Bond Bonds and notes | 0.41% | |
| United States Treasury Note/Bond Bonds and notes | 0.41% | |
| United States Treasury Note/Bond Bonds and notes | 0.41% | |
| United States Treasury Note/Bond Bonds and notes | 0.40% | |
| United States Treasury Note/Bond Bonds and notes | 0.39% | |
| United States Treasury Note/Bond Bonds and notes | 0.39% | |
| United States Treasury Note/Bond Bonds and notes | 0.36% | |
| United States Treasury Note/Bond Bonds and notes | 0.36% | |
| United States Treasury Note/Bond Bonds and notes | 0.35% | |
| United States Treasury Note/Bond Bonds and notes | 0.35% | |
| United States Treasury Note/Bond Bonds and notes | 0.34% |
By country
United States 92.09%N/A 1.41%Canada 1.08%United Kingdom 0.83%Japan 0.54%By issuer
US Treasury 48.14%Companies 28.24%US government-sponsored enterprises 15.45%US government agencies 4.82%Foreign governments 1.71%The bonds mature in 11.7 years on average (weighted by size), with an average coupon of 3.86%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $11.53B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.16%, +0.30%, +0.23%.
How it works
BND is the exchange-traded share class of Vanguard Total Bond Market Index Fund. Rather than a manager picking bonds, it tracks the Bloomberg U.S. Aggregate Float Adjusted Index: investment-grade (higher-rated), taxable bonds sold in the US with more than a year until maturity. That includes government, corporate and foreign bonds paid in US dollars, plus mortgage-backed and asset-backed securities, which bundle home loans or other debts. Bonds are weighted by market value, counting only the portion available to investors.
The fund doesn't hold every bond. It samples, owning a selection that together matches the index on key risk traits, including average maturity (8.19 years for the index as of December 31, 2025). As of June 30, 2026, holdings were about 48% US Treasury debt, 28% corporate bonds and 15% government-sponsored enterprise debt; mortgage-backed securities made up about 21%.
Bonds drop out of the index once they have less than a year left, and new ones are added, so the fund trades steadily; the prospectus reports 38% portfolio turnover, roughly the share of holdings replaced in a year. It held no derivatives as of June 30, 2026. Mortgage-backed securities add a quirk: homeowners tend to repay early when rates fall and more slowly when rates rise, and either can hurt returns.
What it really costs
- BND charges 0.03% a year, versus an average of 0.2% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.02% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BND | $3 | $10 | $17 | $39 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Vanguard's fund covers the whole US investment-grade bond market for 0.03% a year, so it can serve as the main bond position rather than a niche add-on.
BND tracks the Bloomberg U.S. Aggregate Float Adjusted Index of investment-grade (higher-rated) US bonds. It cushioned stock crashes: it gained 7.5% across the 2008 market decline, and its sharpest drops in 2008 (9.3%) and 2020 (8.7%) recovered in about two months. Rising rates hurt more. It lost 13.15% in 2022, its worst calendar year, and needed about 36 months to regain its January 2022 peak. Its deepest drop, 18.6% from August 2020 to October 2022, was not recovered as of October 27, 2026. Selling shares in 2022 meant locking in losses.
BND's yield over the past year was 4.12% as of October 27, 2026, paid monthly. Its 0.03% expense ratio (the yearly fee) compares with a 0.22% peer average; in the SEC's standard $10,000 example, costs total $39 over 10 years. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want one low-cost core bond holding: 0.03% a year, or $39 over 10 years on $10,000 in the SEC's standard example.
- Retirees seeking monthly income: BND paid $2.94 per share over the 12 months to October 30, 2026, a 4.11% trailing yield.
- Stock-heavy portfolios needing a steadier counterweight: from the stock market's October 2007 peak to its March 2009 low, BND returned 7.5%.
Look elsewhere if
- Savers who need stable principal: BND fell 18.6% from August 2020 to October 2022 and hadn't regained that high by October 30, 2026.
- Investors who want tax-free income: the index holds taxable bonds, and municipal bonds were only 0.39% of assets as of June 30, 2026.
- Those counting on bonds to rise when stocks fall: while stocks slumped from January 3 to October 12, 2022, BND lost 14.5%.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| BND this fund | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
| IUSB iShares Core Total USD Bond Market ETF | 11.8 yrs | 0.06% | $43.00B | -0.3% | +5.1% |
| EUSB iShares ESG Advanced Total USD Bond Market … | 11.4 yrs | 0.12% | $710.3M | -1.0% | +5.4% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| FBND Fidelity Total Bond ETF | 14.4 yrs | 0.36% | $28.16B | -0.2% | +5.4% |
| STOT SPDR DoubleLine Short Duration Total Return… | 13.2 yrs | 0.45% | $473.3M | +2.1% | +4.8% |
| BIV Vanguard Intermediate-Term Bond ETF | 7.5 yrs | 0.03% | $52.45B | -0.7% | +5.1% |
| TOTR T. Rowe Price Total Return ETF | 16.1 yrs | 0.32% | $572.6M | -1.2% | +5.6% |
Compared head to head: AGG vs BND · all comparisons →
Questions investors ask
Does BND pay monthly dividends?
Yes. BND pays income monthly. Over the 12 months to October 30, 2026, it paid $2.94 per share, a trailing yield of 4.11% (the past year's payments divided by the share price). The payments come from interest on its bonds, so they can change; its prospectus warns that income may decline when interest rates fall. In a taxable account, this income is generally taxed as ordinary income, not at the lower rates that apply to qualified stock dividends.
What's the difference between BND and AGG?
Not much on cost or returns. Both charge 0.03% a year. As of October 30, 2026, each returned 5.4% a year over three years; over one year, BND lost 0.1% and iShares Core U.S. Aggregate Bond ETF (AGG) lost 0.3%. They have similar average maturities and issuer mixes. BND is run by Vanguard and tracks the Bloomberg U.S. Aggregate Float Adjusted Index. Its fund is larger: $397.1 billion across all share classes as of June 30, 2026, versus $138.3 billion for AGG as of August 31, 2026.
Is BND good for retirement?
It may suit retirees who want a broad, low-cost bond holding, but it is not risk-free. As of June 30, 2026, it held 17,408 holdings, nearly half in US Treasury debt, and it pays income monthly. Its average annual returns through December 31, 2025 were 7.11% over one year, -0.40% over five years and 2.00% over ten. The weak five-year figure includes 2022, when it lost 13.15%. Because bond prices fall when rates rise, its value can stay down for years.
What is BND's expense ratio?
BND's expense ratio, the yearly fee taken from fund assets, is 0.03%, according to its prospectus filed April 28, 2026; that includes a 0.02% management fee. In the SEC's standard example, $10,000 earning 5% a year would cost $3 in the first year, $17 over five years and $39 over ten. That matches iShares Core U.S. Aggregate Bond ETF (AGG) for the lowest among similar funds, well below their 0.2% average. Fidelity Total Bond ETF (FBND) charges 0.36%.
Is BND safe in a stock market crash?
It has usually held up better than stocks, but it is not immune. From the stock market's October 2007 peak to its March 2009 low, BND returned 7.5%, despite a 9.3% drop between September 15 and October 10, 2008. Over the 2020 COVID crash it slipped 1.4%. But in the 2022 stock slump, from January 3 to October 12, it lost 14.5%: bonds can fall alongside stocks when interest rates rise. It did not regain its January 2022 level until October 13, 2025.