VGIT vs VO
Vanguard Intermediate Term Treasury ETF vs Vanguard Morningstar Mid-Cap ETF
Quick Verdict
VO delivered stronger 1-year returns. VO offers more diversification with 289 holdings.
Side-by-Side Comparison
| Metric | VGIT | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $42.4B | $106.6B | |
| Dividend Yield | 3.88% | 1.32% | |
| Holdings | 209 | 289 | |
| YTD Return | -0.22% | +14.37% | |
| 1Y Return | +1.22% | +16.08% | |
| 3Y Return (annualized) | +4.11% | +17.18% | |
| 5Y Return (annualized) | -0.07% | +7.68% | |
| Volatility (annualized) | 4.3% | 16.9% | |
| Max Drawdown | -17.2% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Jan 26, 2004 |
VGIT vs VO Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VGIT returned +1.22% while VO returned +16.08%. Year to date, VGIT is down 0.22% versus a gain of 14.37% for VO.
Over three years, VGIT compounded at +4.11% per year against +17.18% for VO; over five years the annualized figures are -0.07% and +7.68% respectively. Across the full 17-year window we track, VO has the edge at +9.21% annualized vs +0.78%. 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 3.88% against 1.32% for VO.
Holdings 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 +1.22% vs +16.08% for VO, so VO leads on 1-year performance. Over the longest common window we track (17 years), VGIT annualized +0.78% 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 3.88% while VO yields 1.32%, so VGIT currently pays the higher dividend yield.
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