BND's 0.03% Fee Hides the Real Cost: Every Dollar of Its 4% Yield Is Taxed as Ordinary Income

BND’s reported expense ratio is extremely low (costs investors almost nothing on the fund level), but investors face a recurring tax-related “real bill” each year when holding the ETF in a taxable account. The article highlights that total after-tax cost is driven more by annual tax implications than by the ETF’s stated fee.