BNDX vs TNIBX Fund Comparison

A comparison between BNDX and TNIBX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on BNDX vs TNIBX

Here's an in depth look at the differences between Vanguard Total International Bond Index Fund ETF Shares ($BNDX) and T. Rowe Price International Bond Fund (USD Hedged) ($TNIBX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

94% FI Score
  • bndx
  • ETF
  • Bond
  • International

Vanguard Total International Bond Index Fund ETF Shares

Expenses: 0.08% (Better than 1% of similar funds)

This is a great choice for a International Bond fund. See why »

67% FI Score
  • tnibx
  • Mutual Fund
  • Bond
  • International

T. Rowe Price International Bond Fund (USD Hedged)

Expenses: 0.64% (Better than 1% of similar funds)

This is an OK choice for a International Bond fund. See why »

$BNDX is classified as an ETF while $TNIBX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Both of these funds are Bond International funds – which means they're likely both investing in about the same investments behind the scenes.

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

BNDX TNIBX
Market Score 9.5 /10 7.6 /10
Category Score 10.0 /10 10.0 /10
Total 19.5 17.6

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $BNDX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, BNDX has an expense ratio of 0.08% while TNIBX has an expense ratio of 0.64%.

Winner: $BNDX

Fund Size Comparison

Both BNDX and TNIBX have a similar number of assets under management. BNDX has 143 Billion in assets under management, while TNIBX has 5.51 Billion.

Minafi categorizes both of these funds as large funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? BNDX or TNIBX?

Since both of these funds are Bond International funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives BNDX a score of 94 and TNIBX a score of 67.

In this case, one fund has a 90+ score – which the clear winner between these two.

Winner: $BNDX, Vanguard Total International Bond Index Fund ETF Shares

$BNDX

Vanguard Total International Bond Index Fund ETF Shares

94

Read More
Ratings
Rating Type Rating
Diversification Score 10 /10
Expense Ratio Score 9 /10
Expense Rating 9 /10
Market Score 9 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Inception Date May-31-2013
Exchange NASDAQ
Expense Ratio 0.080%
Net Assets 143 Billion
Yield 3.33%
Holdings
Description Info
Market Bond
Category International
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 100.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • United Kingdom 100.00%

$TNIBX

T. Rowe Price International Bond Fund (USD Hedged)

67

Read More
Ratings
Rating Type Rating
Expense Ratio Score 7 /10
Expense Rating 4 /10
Market Score 8 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Sep-12-2017
Exchange NMFQS
Expense Ratio 0.640%
Net Assets 5.51 Billion
Yield 1.61%
Holdings
Description Info
Market Bond
Category International
Sectors
  • Cash & Equivalents 10.17%
  • Corporate 17.45%
  • Government 71.82%
  • Municipal 0.00%
  • Other -0.31%
  • Securitized 0.96%

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