VB vs VIITX
Vanguard Small Cap ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Quick Verdict
VIITX has a lower expense ratio. VB delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.
Side-by-Side Comparison
| Metric | VB | VIITX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $81.5B | - | |
| Dividend Yield | 1.48% | 4.56% | |
| Holdings | 1,324 | 2,599 | |
| YTD Return | +17.82% | -1.89% | |
| 1Y Return | +29.09% | -1.35% | |
| 3Y Return (annualized) | +16.24% | +0.33% | |
| 5Y Return (annualized) | +8.18% | -2.29% | |
| Volatility (annualized) | 18.9% | 4.2% | |
| Max Drawdown | -61.0% | -15.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Dec 1, 1997 |
VB vs VIITX Performance
Vanguard Small Cap ETF (VB) is a 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 VB returned +29.09% while VIITX returned -1.35%. Year to date, VB is up 17.82% versus a loss of 1.89% for VIITX.
Over three years, VB compounded at +16.24% per year against +0.33% for VIITX; over five years the annualized figures are +8.18% and -2.29% respectively. Across the full 5-year window we track, VB has the edge at +8.86% annualized vs -2.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -61.0% for VB and -15.0% for VIITX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VB charges 0.03% per year while VIITX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, VB currently yields 1.48% against 4.56% for VIITX.
Holdings Overlap
VB and VIITX share 0 holdings out of 2297 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VB or VIITX?
VB has an expense ratio of 0.03% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VB or VIITX?
Over the past year VB returned +29.09% vs -1.35% for VIITX, so VB leads on 1-year performance. Over the longest common window we track (5 years), VB annualized +8.86% vs -2.29% for VIITX. Past performance does not guarantee future results.
Which is riskier, VB or VIITX?
VB has been the more volatile fund at 18.9% annualized versus 4.2% for VIITX. Worst drawdown: VB -61.0% vs VIITX -15.0%.
Should I hold both VB and VIITX?
VB and VIITX have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VIITX?
VB and VIITX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2297 unique securities.
Which pays a higher dividend, VB or VIITX?
VB yields 1.48% while VIITX yields 4.56%, so VIITX currently pays the higher dividend yield.
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