VBK vs VTBNX
Vanguard Small Cap Growth ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. VBK delivered stronger 1-year returns. VTBNX offers more diversification with 8098 holdings.
Side-by-Side Comparison
| Metric | VBK | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.02% | |
| AUM | $24.8B | $206.7B | |
| Dividend Yield | 0.57% | 3.73% | |
| Holdings | 561 | 15,623 | |
| YTD Return | +18.02% | -2.60% | |
| 1Y Return | +30.64% | -1.88% | |
| 3Y Return (annualized) | +17.15% | +0.36% | |
| 5Y Return (annualized) | +5.51% | -3.49% | |
| Volatility (annualized) | 19.6% | 6.3% | |
| Max Drawdown | -59.4% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Feb 17, 2009 |
VBK vs VTBNX Performance
Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VBK returned +30.64% while VTBNX returned -1.88%. Year to date, VBK is up 18.02% versus a loss of 2.60% for VTBNX.
Over three years, VBK compounded at +17.15% per year against +0.36% for VTBNX; over five years the annualized figures are +5.51% and -3.49% respectively. Across the full 5-year window we track, VBK has the edge at +9.42% annualized vs -3.49%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 6.3% for VTBNX. 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 -59.4% for VBK and -21.5% for VTBNX. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBK charges 0.05% per year while VTBNX 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, VBK currently yields 0.57% against 3.73% for VTBNX.
Holdings Overlap
VBK and VTBNX share 1 holdings out of 8639 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VBK | Weight in VTBNX | Difference |
|---|---|---|---|
| HUBB | 0.19% | 0.00% | 0.19% |
Frequently Asked Questions
Which is cheaper, VBK or VTBNX?
VBK has an expense ratio of 0.05% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VBK or VTBNX?
Over the past year VBK returned +30.64% vs -1.88% for VTBNX, so VBK leads on 1-year performance. Over the longest common window we track (5 years), VBK annualized +9.42% vs -3.49% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VBK or VTBNX?
VBK has been the more volatile fund at 19.6% annualized versus 6.3% for VTBNX. Worst drawdown: VBK -59.4% vs VTBNX -21.5%.
Should I hold both VBK and VTBNX?
VBK and VTBNX have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and VTBNX?
VBK and VTBNX share 1 common holdings with a 0.0% weight overlap. Combined, they hold 8639 unique securities.
Which pays a higher dividend, VBK or VTBNX?
VBK yields 0.57% while VTBNX yields 3.73%, so VTBNX currently pays the higher dividend yield.
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