US-listed · NASDAQ · FIF-eligible (above NZ$50K)
Vanguard BND Vanguard Total Bond Market ETF
Tracks the Bloomberg US Aggregate Float Adjusted Index — broad investment-grade US bond exposure (Treasuries, agency MBS, investment-grade corporates).
Updated Reviewed quarterly
About this fund
What is BND?
BND is the US-listed ticker for Vanguard Total Bond Market ETF, issued by Vanguard. Tracks the Bloomberg US Aggregate Float Adjusted Index — broad investment-grade US bond exposure (Treasuries, agency MBS, investment-grade corporates). TER is 0.03% per year, with a trailing 12-month distribution yield of approximately 4.6%. Distributions are paid monthly.
How to buy
Where can I buy BND from New Zealand?
Hatch NZ-built. US$3 flat per trade, ~0.5% FX.
Stake Commission-free US shares; ~0.7% FX.
Sharesies NZ + AU + US in one account; tiered subscription pricing.
Interactive Brokers Tiered commissions; FX margin ~0.002% (lowest published of platforms reviewed).
See the full platform comparison for fees, minimums, and supported markets across all 11 NZ-accessible brokers.
NZ tax
How is BND taxed for NZ investors?
BND is US-listed, so it sits in the Foreign Investment Fund (FIF) regime once your overseas-share holdings exceed NZ$50,000 cost basis. Below that threshold, the FIF regime does not apply and you pay tax on dividends only.
Above NZ$50K cost basis, most NZ retail investors use the Fair Dividend Rate (FDR) method — deemed income = 5% × opening market value × your marginal tax rate. FDR vs CV method →
US dividends carry 15% US withholding tax under the NZ–US tax treaty (file a W-8BEN with your broker; without it, the rate is 30%). The 15% can be claimed as a foreign tax credit on your IR3.
Tax outcomes depend on your portfolio size, marginal rate, and FDR-vs-CV election. See PIE vs FIF for the full comparison and consult a registered NZ tax adviser for personalised guidance.
FAQ
Common questions about BND
What is the BND ETF? ⌄
BND is the Vanguard Total Bond Market ETF — it tracks the Bloomberg US Aggregate Float Adjusted Index, holding ~10,000 US investment-grade bonds (Treasuries ~45%, agency mortgage-backed securities ~25%, investment-grade corporate bonds ~25%, other ~5%). TER is 0.03% (one of the lowest of any bond ETF), distributions paid monthly. Yield ~4.6%.
BND vs AGG — what's the difference? ⌄
Both track the Bloomberg US Aggregate Index — the standard "total US bond market" benchmark. BND (Vanguard) charges 0.03% TER vs AGG (iShares) at 0.03% TER. Holdings are nearly identical. BND is the broader-coverage alternative; AGG has higher liquidity. For NZ buy-and-hold investors the difference is marginal.
Can NZ residents buy BND? ⌄
Yes. BND is available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Above NZ$50,000 cost basis FIF rules apply. Bond ETFs interact with FIF in a particular way: bond returns are typically much smaller than equity returns, so the FDR floor (5% × MV × marginal rate) often produces tax payable that exceeds the actual income — making bond ETFs particularly tax-inefficient under FIF for NZ residents.
BND vs SCHZ vs SGOV — which bond ETF for NZ investors? ⌄
BND = total US investment-grade bond market (mixed duration, mixed credit). SCHZ = US Treasury intermediate (3-10 year duration, no credit risk). SGOV = US Treasury 0-3 month (cash-equivalent). Choice depends on duration view: SGOV for cash-like exposure, SCHZ for moderate duration, BND for broad mixed exposure. All three have the same FIF disadvantage — for NZ residents above NZ$50K cost basis, NZ-domiciled bond funds (where they exist) are structurally cleaner.
Related ETFs and resources
SCHZ — Schwab Intermediate Treasury
Treasury-only alternative; lower credit risk, similar yield.
SGOV — iShares 0-3 Month Treasury
Cash-equivalent alternative for short-duration exposure.
HYG — iShares High Yield Corp Bond
Higher-yield, higher-credit-risk alternative.
BKLN — Invesco Senior Loan
Floating-rate senior loan exposure.
Best bond ETFs for NZ
Curated comparison of bond options for NZ investors.