VBR vs VGIT
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VGIT has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 847 holdings.
Side-by-Side Comparison
| Metric | VBR | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $37.3B | $42.4B | |
| Dividend Yield | 1.76% | 3.88% | |
| Holdings | 847 | 209 | |
| YTD Return | +17.02% | -0.22% | |
| 1Y Return | +20.77% | +1.22% | |
| 3Y Return (annualized) | +16.79% | +4.11% | |
| 5Y Return (annualized) | +9.46% | -0.07% | |
| Volatility (annualized) | 19.0% | 4.3% | |
| Max Drawdown | -64.0% | -17.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Nov 19, 2009 |
VBR vs VGIT Performance
Vanguard Morningstar 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 +20.77% while VGIT returned +1.22%. Year to date, VBR is up 17.02% versus a loss of 0.22% for VGIT.
Over three years, VBR compounded at +16.79% per year against +4.11% for VGIT; over five years the annualized figures are +9.46% and -0.07% respectively. Across the full 17-year window we track, VBR has the edge at +7.98% annualized vs +0.78%. 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 1.76% against 3.88% for VGIT.
Holdings Overlap
VBR and VGIT share 0 holdings out of 919 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 +20.77% vs +1.22% for VGIT, so VBR leads on 1-year performance. Over the longest common window we track (17 years), VBR annualized +7.98% vs +0.78% 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 919 unique securities.
Which pays a higher dividend, VBR or VGIT?
VBR yields 1.76% while VGIT yields 3.88%, so VGIT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.