EDV vs VIITX

EDV vs VIITX

Which is better, EDV or VIITX?

Long Term Government Bond against Intermediate Term Bond.

VIITX has a lower expense ratio.

Lower Fees: VIITX

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricEDVVIITX
Expense Ratio0.05%0.02%Best
AUM$3.8B-
Dividend Yield5.42%4.60%
Holdings832,599
YTD Price Return-7.00%-3.46%
1Y Price Return-10.76%-3.69%
3Y Price Return (annualized)-6.28%+0.19%
5Y Price Return (annualized)-15.98%-2.61%
Volatility (annualized)20.4%4.2%Best
Max Drawdown-60.5%-14.9%Best
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeFixed Income
StyleLong Term Government BondIntermediate Term Bond
InceptionDec 6, 2007Dec 1, 1997

Not shown on this pair: $10,000 over 5 years, Top 10 Weight.

A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. EDV currently yields 5.42% and VIITX 4.60%.

Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).

Compare EDV against instead:EDV vs SPYEDV vs QQQEDV vs VOOEDV vs VTIVIITX against:VIITX vs VXUS

EDV vs VIITX Performance

Vanguard Extended Duration Treasury ETF (EDV) is an ETF from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year EDV's price moved -10.76% and VIITX's -3.69%, before the income each one paid out.

Over three years, EDV compounded at -6.28% per year against +0.19% for VIITX; over five years the annualized figures are -15.98% and -2.61% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EDV has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 4.2% for VIITX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -60.5% for EDV and -14.9% for VIITX. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EDV charges 0.05% per year while VIITX charges 0.02%. On a $10,000 position that is $5 vs $2 annually, a gap of $3 per year that compounds over a long holding period. On income, EDV currently yields 5.42% against 4.60% for VIITX.

Structure and taxes

VIITX is a mutual fund and EDV is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.

In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.

Tax-loss harvesting works on either wrapper.

You are not choosing between two funds in isolation.

Whichever of EDV and VIITX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

EDVVIITX

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, EDV or VIITX?

EDV has an expense ratio of 0.05% while VIITX charges 0.02%. VIITX is the cheaper option, by $3 a year on a $10,000 investment.

Which is riskier, EDV or VIITX?

EDV has been the more volatile fund at 20.4% annualized versus 4.2% for VIITX. Worst drawdown: EDV -60.5% vs VIITX -14.9%.

Should I hold both EDV and VIITX?

EDV and VIITX have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, EDV or VIITX?

EDV yields 5.42% while VIITX yields 4.60%, so EDV currently pays the higher dividend yield.

Is it better to hold VIITX or EDV in a taxable account?

EDV is an ETF and VIITX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.

Is VIITX better than EDV?

VIITX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.