VBR vs VGIT

Quick Verdict

VGIT has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 809 holdings.

Lower Fees: VGITHigher Returns: VBRMore Diversified: VBR

Side-by-Side Comparison

MetricVBRVGITWinner
Expense Ratio0.05%0.03%
AUM$36.9B$42.1B
Dividend Yield2.23%3.84%
Holdings853106
YTD Return+17.75%-0.62%
1Y Return+28.74%+1.32%
3Y Return (annualized)+15.64%+3.60%
5Y Return (annualized)+10.13%-0.12%
Volatility (annualized)19.0%4.3%
Max Drawdown-64.0%-17.2%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionJan 26, 2004Nov 19, 2009

VBR vs VGIT Performance

Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year VBR returned +28.74% while VGIT returned +1.32%. Year to date, VBR is up 17.75% versus a loss of 0.62% for VGIT.

Over three years, VBR compounded at +15.64% per year against +3.60% for VGIT; over five years the annualized figures are +10.13% and -0.12% respectively. Across the full 17-year window we track, VBR has the edge at +8.03% annualized vs +0.75%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VBR has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 4.3% for VGIT. 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 -64.0% for VBR and -17.2% for VGIT. 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 -0.12. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VBR charges 0.05% per year while VGIT charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VBR currently yields 2.23% against 3.84% for VGIT.

Holdings Overlap

0.0%overlap

VBR and VGIT share 0 holdings out of 893 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, VBR or VGIT?

VBR has an expense ratio of 0.05% while VGIT charges 0.03%. VGIT is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VBR or VGIT?

Over the past year VBR returned +28.74% vs +1.32% for VGIT, so VBR leads on 1-year performance. Over the longest common window we track (17 years), VBR annualized +8.03% vs +0.75% for VGIT. Past performance does not guarantee future results.

Which is riskier, VBR or VGIT?

VBR has been the more volatile fund at 19.0% annualized versus 4.3% for VGIT. Worst drawdown: VBR -64.0% vs VGIT -17.2%.

Should I hold both VBR and VGIT?

VBR and VGIT have a monthly-return correlation of -0.12, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VBR and VGIT?

VBR and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 893 unique securities.

Which pays a higher dividend, VBR or VGIT?

VBR yields 2.23% while VGIT yields 3.84%, so VGIT currently pays the higher dividend yield.

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