VBR vs VIITX
Vanguard Small Cap Value ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Quick Verdict
VIITX has a lower expense ratio. VBR delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.
Side-by-Side Comparison
| Metric | VBR | VIITX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.02% | |
| AUM | $36.9B | - | |
| Dividend Yield | 2.23% | 4.56% | |
| Holdings | 853 | 2,599 | |
| YTD Return | +17.62% | -2.08% | |
| 1Y Return | +28.72% | -1.49% | |
| 3Y Return (annualized) | +16.07% | +0.49% | |
| 5Y Return (annualized) | +9.64% | -2.31% | |
| Volatility (annualized) | 19.0% | 4.2% | |
| Max Drawdown | -64.0% | -15.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Dec 1, 1997 |
VBR vs VIITX Performance
Vanguard Small Cap Value ETF (VBR) 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 VBR returned +28.72% while VIITX returned -1.49%. Year to date, VBR is up 17.62% versus a loss of 2.08% for VIITX.
Over three years, VBR compounded at +16.07% per year against +0.49% for VIITX; over five years the annualized figures are +9.64% and -2.31% respectively. Across the full 5-year window we track, VBR has the edge at +8.02% annualized vs -2.31%. 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 4.2% 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 -64.0% for VBR 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBR charges 0.05% per year while VIITX 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, VBR currently yields 2.23% against 4.56% for VIITX.
Holdings Overlap
VBR and VIITX share 0 holdings out of 1994 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 VIITX?
VBR has an expense ratio of 0.05% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VBR or VIITX?
Over the past year VBR returned +28.72% vs -1.49% for VIITX, so VBR leads on 1-year performance. Over the longest common window we track (5 years), VBR annualized +8.02% vs -2.31% for VIITX. Past performance does not guarantee future results.
Which is riskier, VBR or VIITX?
VBR has been the more volatile fund at 19.0% annualized versus 4.2% for VIITX. Worst drawdown: VBR -64.0% vs VIITX -15.0%.
Should I hold both VBR and VIITX?
VBR and VIITX have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VIITX?
VBR and VIITX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1994 unique securities.
Which pays a higher dividend, VBR or VIITX?
VBR yields 2.23% while VIITX yields 4.56%, so VIITX currently pays the higher dividend yield.
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