ETF Comparison

BND vs IEF: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Total Bond Market ETF and iShares 7-10 Year Treasury Bond ETF covering yield, cost, risk, and income potential.

Data updated July 10, 2026

Vanguard

ETFs115

Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on BND.

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iShares

ETFs481

Total AUM$4452B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IEF.

See all iShares ETFs

Side-by-side snapshot

	BND	IEF
Full name	Vanguard Total Bond Market ETF	iShares 7-10 Year Treasury Bond ETF
Issuer	Vanguard	iShares
Last Close	$72.83 as of July 10, 2026	$93.71 as of July 10, 2026
Distribution yield	4.03%	3.98%
Distribution Safety Score	100	100
Expense ratio	0.03%	0.15%
AUM	$158B	$46.9B
Distribution frequency	Monthly	Monthly
Underlying index	Bloomberg U.S. Aggregate Float Adjusted Index	ICE U.S. Treasury 7-10 Year Bond Index
Objective	Track the Bloomberg U.S. Aggregate Float Adjusted Index for broad U.S. bond exposure.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Fixed Income	Fixed Income
Inception date	04/03/2007	07/22/2002
Beta	0.98	1.16
Last dividend	$0.2445	$0.3111
Ex-dividend date	07/01/2026	07/01/2026

Bottom lineBND and IEF are nearly interchangeable — both offer very similar investment grade bonds exposure with very similar cost and risk. The clearest tie-breaker is cost: BND is cheaper at 0.03% vs 0.15%.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

BND has outpaced IEF over the trailing twelve months, posting a 3.71% total return against 2.90%. The lead holds up over 10 years too: BND has compounded at 1.31% a year, against 0.33% for IEF. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Apr 2007	Volatility	Sharpe	Sortino	Max drawdown
BND	-0.01%	3.71%	4.20%	-0.29%	1.31%	3.00%	5.3%	-0.07	-0.10	-5.9%
IEF	-0.88%	2.90%	3.08%	-1.59%	0.33%	3.22%	6.5%	-0.22	-0.31	-7.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 9, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Apr 2007” measures every fund from April 10, 2007 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

BND (Vanguard Total Bond Market ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

BND offers the higher yield at 4.03% vs 3.98% for IEF. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

BND is cheaper with an expense ratio of 0.03% compared to 0.15%.

They track different benchmarks: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, which means their performance drivers differ.

BND is the larger fund by assets ($158B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $33.58/month, while IEF would produce $33.17/month, at current distribution rates. Both pay monthly distributions.

BND yield4.03%

IEF yield3.98%

Monthly diff on $10K$0.42

Cost & efficiency

Over 10 years on $10,000, BND would cost approximately $30 in fees vs $150 for IEF (simplified, not compounded). The $120.00 difference may be offset by yield or performance.

BND ER0.03%

IEF ER0.15%

Strategy & risk

BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index with a treasury approach. Beta is 0.98 for BND and 1.16 for IEF, indicating BND is less volatile relative to the market.

BND beta0.98

IEF beta1.16

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $158B in assets. IEF is managed by iShares (launched 07/22/2002) with $46.9B in assets.

BND AUM$158B

IEF AUM$46.9B

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Frequently asked questions

Is BND or IEF better for dividend income?

It depends on your goals. BND currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between BND and IEF?

BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while IEF (iShares 7-10 Year Treasury Bond ETF) tracks ICE U.S. Treasury 7-10 Year Bond Index with a treasury approach. They are issued by Vanguard and iShares respectively.

Can I hold both BND and IEF?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, BND or IEF?

BND has an expense ratio of 0.03% while IEF charges 0.15%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in BND vs IEF generate?

At current rates, $10,000 in BND would generate roughly $33.58 per month ($403.00 annually). The same in IEF would produce about $33.17 per month ($398.00 annually).

Which has performed better historically, BND or IEF?

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BND vs IEF — at a glance

Generated July 2026 from current fund data.

Overview

BND and IEF are both broad U.S. fixed-income ETFs paying monthly distributions, but they track fundamentally different bond universes. BND holds the entire investment-grade bond market—Treasuries, corporates, mortgage-backed securities, and agencies—while IEF focuses exclusively on intermediate-term Treasury bonds with 7–10 year maturities. That structural difference drives their yield, duration, and credit-risk profiles.

How they differ

BND's broadest distinction is its diversified exposure across all investment-grade sectors, which generates a 4.01% distribution rate supported by corporate and mortgage spreads alongside Treasuries. IEF, by contrast, holds only government bonds with no credit risk, paying 3.97%—a narrower yield that reflects pure duration and Treasury term premium rather than credit compensation. On fees, BND's 0.03% expense ratio is among the lowest in the industry, while IEF charges 0.15%, a meaningful four-fold difference on large positions. BND's $158B in assets dwarfs IEF's $46.9B, and BND's beta of 0.98 suggests slightly lower interest-rate sensitivity than IEF's 1.17, consistent with BND's shorter average duration from its mortgage and floating-rate holdings.

Who each is best for

BND: Fits investors seeking one-fund bond market exposure with minimal credit selection, benefiting from both Treasury and spread-based income while keeping costs extremely low.

IEF: Designed for investors who want government-only bond exposure and accept higher interest-rate sensitivity in exchange for eliminating credit risk and corporate default uncertainty.

Key risks to know

Credit spread compression: BND's 4.01% yield depends on corporate and mortgage spreads staying wide enough to offset Treasuries; if spreads tighten sharply, distribution rate could decline while the fund's total return remains weak.

Intermediate-rate duration: IEF's 1.17 beta reflects meaningful sensitivity to 7–10 year Treasury yield moves; a rapid rise in long-term rates can reduce NAV significantly, making it less stable than shorter-duration alternatives.

Duration mismatch in BND: BND blends very-short mortgage and floating-rate bonds with longer corporate bonds, creating a blended duration that may not match investor expectations based on distribution rate alone.

Expense ratio drag on IEF: The 0.15% annual fee compounds over time, especially if interest rates remain flat or fall modestly; on a $100,000 position, it costs $150 annually versus BND's $3, a meaningful gap for passive fixed-income allocations.

Bottom line

If you want broad bond-market diversification and the lowest possible fees, BND's $158B scale and 0.03% expense ratio stand out. If you prioritize government-only safety and accept higher interest-rate volatility, IEF delivers Treasury-specific exposure, though at a steeper cost. Both pay monthly and track liquid indices, so the choice hinges on whether you value spread income and cost efficiency (BND) or government exclusivity (IEF).

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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