VGIT vs VO

Quick Verdict

VO delivered stronger 1-year returns. VO offers more diversification with 279 holdings.

Lower Fees: TiedHigher Returns: VOMore Diversified: VO

Side-by-Side Comparison

MetricVGITVOWinner
Expense Ratio0.03%0.03%
AUM$42.1B$105.9B
Dividend Yield3.84%1.53%
Holdings106293
YTD Return-0.62%+13.82%
1Y Return+1.32%+18.00%
3Y Return (annualized)+3.60%+15.98%
5Y Return (annualized)-0.12%+8.06%
Volatility (annualized)4.3%16.9%
Max Drawdown-17.2%-60.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Jan 26, 2004

VGIT vs VO Performance

Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VGIT returned +1.32% while VO returned +18.00%. Year to date, VGIT is down 0.62% versus a gain of 13.82% for VO.

Over three years, VGIT compounded at +3.60% per year against +15.98% for VO; over five years the annualized figures are -0.12% and +8.06% respectively. Across the full 17-year window we track, VO has the edge at +9.21% annualized vs +0.75%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VO has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -17.2% for VGIT and -60.3% for VO. 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VGIT charges 0.03% per year while VO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGIT currently yields 3.84% against 1.53% for VO.

Holdings Overlap

0.0%overlap

VGIT and VO share 0 holdings out of 363 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 VO?

VGIT has an expense ratio of 0.03% while VO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, VGIT or VO?

Over the past year VGIT returned +1.32% vs +18.00% for VO, so VO leads on 1-year performance. Over the longest common window we track (17 years), VGIT annualized +0.75% vs +9.21% for VO. Past performance does not guarantee future results.

Which is riskier, VGIT or VO?

VO has been the more volatile fund at 16.9% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs VO -60.3%.

Should I hold both VGIT and VO?

VGIT and VO have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VGIT and VO?

VGIT and VO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 363 unique securities.

Which pays a higher dividend, VGIT or VO?

VGIT yields 3.84% while VO yields 1.53%, so VGIT currently pays the higher dividend yield.

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