VGIT vs VIITX

Quick Verdict

VIITX has a lower expense ratio. VGIT delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.

Lower Fees: VIITXHigher Returns: VGITMore Diversified: VIITX

Side-by-Side Comparison

MetricVGITVIITXWinner
Expense Ratio0.03%0.02%
AUM$42.1B-
Dividend Yield3.84%4.56%
Holdings1062,599
YTD Return-0.62%-1.89%
1Y Return+1.32%-1.35%
3Y Return (annualized)+3.60%+0.33%
5Y Return (annualized)-0.12%-2.29%
Volatility (annualized)4.3%4.2%
Max Drawdown-17.2%-15.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeFixed Income
InceptionNov 19, 2009Dec 1, 1997

VGIT vs VIITX Performance

Vanguard Intermediate Term Treasury ETF (VGIT) 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 VGIT returned +1.32% while VIITX returned -1.35%. Year to date, VGIT is down 0.62% versus a loss of 1.89% for VIITX.

Over three years, VGIT compounded at +3.60% per year against +0.33% for VIITX; over five years the annualized figures are -0.12% and -2.29% respectively. Across the full 5-year window we track, VGIT has the edge at +0.75% annualized vs -2.29%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGIT has been the more volatile fund, with annualized monthly volatility of 4.3% 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 -17.2% for VGIT 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

VGIT 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, VGIT currently yields 3.84% against 4.56% for VIITX.

Holdings Overlap

0.0%overlap

VGIT and VIITX share 0 holdings out of 1269 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, VGIT or VIITX?

VGIT 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, VGIT or VIITX?

Over the past year VGIT returned +1.32% vs -1.35% for VIITX, so VGIT leads on 1-year performance. Over the longest common window we track (5 years), VGIT annualized +0.75% vs -2.29% for VIITX. Past performance does not guarantee future results.

Which is riskier, VGIT or VIITX?

VGIT has been the more volatile fund at 4.3% annualized versus 4.2% for VIITX. Worst drawdown: VGIT -17.2% vs VIITX -15.0%.

Should I hold both VGIT and VIITX?

VGIT and VIITX have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between VGIT and VIITX?

VGIT and VIITX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1269 unique securities.

Which pays a higher dividend, VGIT or VIITX?

VGIT yields 3.84% while VIITX yields 4.56%, so VIITX currently pays the higher dividend yield.

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