VEA vs VIITX

Quick Verdict

VIITX has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.

Lower Fees: VIITXHigher Returns: VEAMore Diversified: VEA

Side-by-Side Comparison

MetricVEAVIITXWinner
Expense Ratio0.03%0.02%
AUM$230.9B-
Dividend Yield2.57%4.56%
Holdings3,9182,599
YTD Return+16.79%-2.03%
1Y Return+29.05%-1.44%
3Y Return (annualized)+20.60%+0.54%
5Y Return (annualized)+10.24%-2.33%
Volatility (annualized)17.8%4.2%
Max Drawdown-62.9%-15.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionJul 20, 2007Dec 1, 1997

VEA vs VIITX Performance

Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +29.05% while VIITX returned -1.44%. Year to date, VEA is up 16.79% versus a loss of 2.03% for VIITX.

Over three years, VEA compounded at +20.60% per year against +0.54% for VIITX; over five years the annualized figures are +10.24% and -2.33% respectively. Across the full 5-year window we track, VEA has the edge at +3.16% annualized vs -2.33%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -62.9% for VEA 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VEA charges 0.03% per year while VIITX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, VEA currently yields 2.57% against 4.56% for VIITX.

Holdings Overlap

0.0%overlap

VEA and VIITX share 0 holdings out of 4193 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, VEA or VIITX?

VEA has an expense ratio of 0.03% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, VEA or VIITX?

Over the past year VEA returned +29.05% vs -1.44% for VIITX, so VEA leads on 1-year performance. Over the longest common window we track (5 years), VEA annualized +3.16% vs -2.33% for VIITX. Past performance does not guarantee future results.

Which is riskier, VEA or VIITX?

VEA has been the more volatile fund at 17.8% annualized versus 4.2% for VIITX. Worst drawdown: VEA -62.9% vs VIITX -15.0%.

Should I hold both VEA and VIITX?

VEA and VIITX have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VEA and VIITX?

VEA and VIITX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4193 unique securities.

Which pays a higher dividend, VEA or VIITX?

VEA yields 2.57% while VIITX yields 4.56%, so VIITX currently pays the higher dividend yield.

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