VBR vs VGIT
VBR vs VGIT
Vanguard 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 809 holdings.
Side-by-Side Comparison
| Metric | VBR | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $36.9B | $42.1B | |
| Dividend Yield | 2.23% | 3.84% | |
| Holdings | 853 | 106 | |
| 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 Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Nov 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
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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