Tesla
Dividend Calendar
Stock Rankings
ETF Rankings
Crypto Rankings
4.0
Vanguard Total Bond Market ETF (BND) is an exchange-traded fund that seeks to track the performance of a broad index composed of U.S. fixed income securities, including Treasuries, investment-grade corporate bonds, and mortgage-backed debt. The ETF is managed by Vanguard and trades under the ticker BND on Nasdaq.
Classified as a U.S. fixed-income ETF, BND aims to reflect, before fees and expenses, the aggregate performance of the bonds that comprise its benchmark index. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the index.
BND’s benchmark index consists of a broad range of U.S. credit securities with varying maturities and credit ratings, weighted by float-adjusted market capitalization, with periodic rebalancing as new issues are added and older securities mature.
Diversification and sector exposure
BND provides exposure to the U.S. fixed income market, covering bonds from different segments and maturities:
U.S. Treasury securities.
Investment-grade corporate bonds.
Agency mortgage-backed securities.
Short-, intermediate-, and long-term maturities.
This structure gives the ETF a diversified fixed-income profile, broadly reflecting the performance of the U.S. credit market.
Structure and costs
Shares of BND are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund features a low expense ratio, typical of passively managed fixed-income ETFs, and does not charge a performance fee. BND makes periodic income distributions, derived from interest payments on the bonds held in its portfolio. The ETF has a single share class and trades exclusively under the ticker BND.
History and evolution of the ETF
The Vanguard Total Bond Market ETF was launched in 2007, amid the growth of fixed-income ETFs and rising demand for broad exposure to U.S. credit markets.
Since its inception, BND has become one of the leading fixed-income ETFs globally, used by institutional and individual investors as a core component of diversified portfolios.
