At a glance
BNDC charges 0.35% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $169.4M in assets, the 8th largest of that group; it paid 4.25% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.8% with distributions reinvested, the weakest of those 8 funds; over three years it returned +5.0% a year. At its worst it fell 9.9% in the 2020 crash (S&P 500: 33.7%) and 15.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 40 months after the lows.
The short version
FlexShares Core Select Bond Fund (BNDC) is an actively managed ETF from Northern Trust that builds a core investment-grade bond portfolio mostly by owning other bond ETFs. As of July 31, 2026, seven iShares and FlexShares funds made up about 99% of assets. It charges 0.35% a year, pays monthly, and trailed its benchmark, the Bloomberg US Aggregate Bond Index, over one and five years through December 31, 2025.
Price history
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BNDC -1.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BNDC official prospectus, to Dec 31, 2025 | — | +7.20% | — | -0.66% | — | +1.75% |
| Bloomberg US Aggregate Bond Index index, same period | — | +7.30% | — | -0.36% | — | +1.92% |
| BNDC price data to Oct 27, 2026 | -1.3% | -1.8% | +5.0% | -0.6% | — | +1.5% |
- Over the year to Oct 27, 2026, BNDC returned -1.8%, 8th of 8 among similar funds.
- Its 5-year annualized return was -0.6%.
- In the 2020 COVID crash it fell 9.9% and regained its old high 2 months after the low.
- Its worst full calendar year was 2022 (-13.5%); its best was 2019 (+9.5%).
- The deepest fall in its price history was 18.7% (Dec 31, 2020 to Oct 20, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.4% | — |
| 2025 | +7.3% | +7.20% |
| 2024 | +0.9% | +0.93% |
| 2023 | +5.4% | +5.34% |
| 2022 | -13.5% | -13.55% |
| 2021 | -2.0% | -1.82% |
| 2020 | +8.6% | +8.75% |
| 2019 | +9.5% | +9.29% |
| 2018 | -1.5% | -1.27% |
| 2017 | +4.0% | +3.87% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 2.8% over that stretch · deepest drop along the way 9.9%, back to its old high 2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15% over that stretch · deepest drop along the way 15.2%, back to its old high 39.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6500 | |
| 2025 | $0.9400 | +13.3% |
| 2024 | $0.8300 | +13.7% |
| 2023 | $0.7300 | +23.7% |
| 2022 | $0.5900 | +31.1% |
| 2021 | $0.4500 | -34.8% |
| 2020 | $0.6900 | -4.2% |
| 2019 | $0.7200 | +2.9% |
| 2018 | $0.7000 | +12.9% |
| 2017 | $0.6200 |
What's inside
As of Jul 31, 2026, the fund held 7 securities; the ten largest made up 99.35% of assets.
| Fund held | Weight | |
|---|---|---|
| iShares 1-5 Year Investment Grade Corporate Bond ETF Other | 24.37% | |
| FlexShares Ultra-Short Income Fund Other | 24.15% | |
| FlexShares Credit-Scored US Corporate Bond Index Fund Other | 15.14% | |
| FlexShares Disciplined Duration MBS Index Fund Other | 12.56% | |
| iShares U.S. Treasury Bond ETF Other | 11.07% | |
| iShares MBS ETF Other | 10.19% | |
| FlexShares Credit-Scored US Long Corporate Bond Index Fund Other | 1.87% |
By country
United States 99.35%By asset type
Other 99.35%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $3.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.18%, +0.25%, -1.39%.
How it works
BNDC does not track an index. Its manager, Northern Trust Investments (NTI), puts at least 80% of net assets into US dollar investment-grade bonds. Investment-grade means bonds rated as having a lower risk of default. The fund can buy bonds directly or buy other funds, and some of those funds are NTI's own FlexShares funds. NTI shifts the mix based on its view of three things: where interest rates may go, the shape of the yield curve (how yields differ between short-term and long-term bonds), and credit spreads (the extra yield corporate bonds pay over Treasuries).
As of July 31, 2026, the fund held seven funds. The largest were iShares 1-5 Year Investment Grade Corporate Bond ETF (24.4%), FlexShares Ultra-Short Income Fund (24.1%), FlexShares Credit-Scored US Corporate Bond Index Fund (15.1%), FlexShares Disciplined Duration MBS Index Fund (12.6%), iShares U.S. Treasury Bond ETF (11.1%) and iShares MBS ETF (10.2%).
The fund also holds Treasury futures. On July 31, 2026, it had five short positions, from 2-year notes to ultra-long bonds, adding up to about -0.57% of assets. These trim its sensitivity to interest rates, but they do not protect against wider credit spreads, and the hedge may not remove rate risk completely. The fund may also use mortgage trades known as TBAs and dollar rolls, and it may lend out up to one-third of its assets. Portfolio turnover was 23%.
What it really costs
- BNDC charges 0.35% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- The fee includes a 0.14% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $602 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BNDC | $36 | $143 | $260 | $602 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- 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
It aims for a broad, investment-grade bond mix measured against the Bloomberg US Aggregate Bond Index, the usual yardstick for a core bond allocation.
BNDC launched in November 2016, so it has no 2008 record. In the 2020 COVID sell-off it fell 9.9% between March 6 and March 19, 2020, and it recovered by May 20, about two months later. The 2022 rate shock hit much harder. It lost 13.55% that calendar year, its worst year, and it took about 39.5 months, until January 12, 2026, to regain its January 2022 level. Its deepest price drop was 18.7%, from December 31, 2020, to October 20, 2022, and it had not regained that peak as of October 27, 2026. Anyone who needed to sell bonds for cash in 2022 would have sold at a loss. Over the 12 months to October 27, 2026, it paid $0.91 per share in monthly income, a 4.25% yield. Its expense ratio is 0.35%. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want one actively managed fund covering short-term corporates, Treasuries and mortgage bonds, built from seven underlying iShares and FlexShares ETFs.
- Retirees who want monthly income; it paid $0.91 per share over the 12 months to October 27, 2026, a 4.25% yield.
- People who want a manager to adjust interest-rate exposure, partly through short Treasury futures, instead of holding a fixed index mix.
Look elsewhere if
- Investors who prefer a pure index fund; BNDC trailed the Bloomberg US Aggregate Bond Index over one and five years through December 31, 2025.
- Those uneasy with a fund-of-funds that relies heavily on its sponsor's own FlexShares funds and uses derivatives such as Treasury futures.
- Anyone who cannot stomach a long bond slump; the fund fell 13.55% in 2022 and needed about 39.5 months to recover.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BNDC this fund | 0.35% | $169.4M | -1.8% | +5.0% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does BNDC pay monthly dividends?
Yes. BNDC pays income monthly. In the year to October 27, 2026, it paid $0.91 per share, a trailing yield of 4.25% (income paid over the past year divided by the share price). Payments are not fixed. The prospectus warns that income can decline when interest rates fall, because maturing bonds get replaced with lower-yielding ones. That matters for retirees who count on a steady monthly amount.
What is BNDC's expense ratio?
BNDC's expense ratio is 0.35% a year, according to its prospectus filed February 25, 2026. The expense ratio is the yearly fee taken from fund assets. The SEC's standard example assumes $10,000 invested, a 5% annual return and shares sold at the end of each period. On that basis, costs would total $36 after one year, $143 after three years, $260 after five and $602 after 10. Index funds that track its benchmark, the Bloomberg US Aggregate Bond Index, are worth comparing on cost.
What does BNDC invest in?
BNDC is a fund of funds: it owns other funds, not individual bonds. As of July 31, 2026, 99.35% of assets sat in seven bond funds. The largest were the iShares 1-5 Year Investment Grade Corporate Bond ETF (24.4%), FlexShares Ultra-Short Income Fund (24.1%), FlexShares Credit-Scored US Corporate Bond Index Fund (15.1%), FlexShares Disciplined Duration MBS Index Fund (12.6%), iShares U.S. Treasury Bond ETF (11.1%) and iShares MBS ETF (10.2%). MBS means mortgage-backed securities. Small short Treasury futures positions, which gain when bond prices fall, partly offset rate risk.
How does BNDC compare with the Bloomberg US Aggregate Bond Index?
BNDC has trailed the index slightly. As of December 31, 2025, the fund returned 7.2% over one year versus 7.3% for the Bloomberg US Aggregate Bond Index. Over five years it returned -0.66% a year versus -0.36%. Since its November 2016 launch it returned 1.75% a year versus 1.92%. Unlike an index fund, BNDC is actively managed. Northern Trust shifts its mix based on views about interest rates and credit spreads (the extra yield corporate bonds pay over Treasuries). That approach can help or hurt.
Is BNDC a good bond fund for retirees?
It may suit retirees who want one actively managed bond holding that pays monthly and keeps at least 80% in investment-grade bonds (those rated less likely to default). It also has drawbacks. Bond prices fall when rates rise, and losses can linger. BNDC lost 13.55% in 2022. After a 15.2% drop from its January 2022 peak, it took about 39.5 months to regain that level, on January 12, 2026. Its five-year average annual return was -0.66% through December 31, 2025.