BND's expense ratio costs investors almost nothing, but the real bill for holding this popular bond ETF in a taxable account arrives from a very different direction every single year.
Holding a popular bond ETF in a taxable brokerage account could be quietly draining far more from your retirement portfolio than you realize, and most retirees with a classic 60/40 allocation never see it coming.
The Vanguard Total Bond Market ETF (NASDAQ:BND) has spent 2026 crossing back and forth over the zero line, with a year-to-date total return that ticks positive one week and negative the next.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 465,841 | $34.14M | $33.45M | -$692,111.85 | -2.03% |
Michelle S. Hickox FIRST FINANCIAL BANKSHARES Inc. | 2.59M | $190.73M | $186.2M | -$4.53M | -2.38% |
Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 835 | $61,489.4 | $59,957.17 | -$1,532.23 | -2.49% |
Curtis Ellergodt Rothschild Investment LLC | 4,930 | $362,628.85 | $353,974 | -$8,654.85 | -2.39% |
| BN Beth Nauman UNIVEST FINANCIAL Corp. | 3,035 | $224,802.36 | $217,791.6 | -$7,010.76 | -3.12% |
| NASDAQ (NMS) Exchange | US Country |
This index represents a comprehensive measurement of the performance of a broad assortment of public, investment-grade, taxable, fixed income securities in the United States. It encompasses a variety of sectors, including government bonds, corporate bonds, and international dollar-denominated bonds, alongside mortgage-backed and asset-backed securities. These securities all share the common characteristic of having maturities greater than one year. The selection process for the fund's investments is carried out through a sampling method. To ensure adherence to its primary focus, at least 80% of its assets are invested in the bonds that constitute the index.
These are secure, investment-grade bonds issued by the government. They are known for their reliability and are considered a safe investment, offering returns at a lower risk compared to corporate bonds.
Issued by corporations, these bonds typically offer higher yields compared to government bonds, reflecting the greater risk associated with corporate operations and financial health.
This type of bond allows investors to gain exposure to international markets while investing in a currency that they may be more familiar with. These bonds can offer diversification benefits to an investment portfolio.
These are investments in a pool of mortgages, providing investors with periodic payments similar to bond coupon payments. They come with a level of risk that depends on the performance of the underlying mortgages.
Similar to mortgage-backed securities, these are bonds or notes backed by financial assets, other than mortgages, that provide regular payments to investors. This can include a wide range of asset types, from car loans to credit card receivables.