VGIT vs VTBNX
VGIT vs VTBNX
Vanguard Intermediate Term Treasury ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. VGIT delivered stronger 1-year returns. VTBNX offers more diversification with 8098 holdings.
Side-by-Side Comparison
| Metric | VGIT | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $42.1B | $206.7B | |
| Dividend Yield | 3.84% | 3.73% | |
| Holdings | 106 | 15,623 | |
| YTD Return | -0.62% | -2.29% | |
| 1Y Return | +1.32% | -1.67% | |
| 3Y Return (annualized) | +3.60% | +0.18% | |
| 5Y Return (annualized) | -0.12% | -3.45% | |
| Volatility (annualized) | 4.3% | 6.3% | |
| Max Drawdown | -17.2% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Feb 17, 2009 |
VGIT vs VTBNX Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VGIT returned +1.32% while VTBNX returned -1.67%. Year to date, VGIT is down 0.62% versus a loss of 2.29% for VTBNX.
Over three years, VGIT compounded at +3.60% per year against +0.18% for VTBNX; over five years the annualized figures are -0.12% and -3.45% respectively. Across the full 5-year window we track, VGIT has the edge at +0.75% annualized vs -3.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -21.5% for VTBNX. 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 0.96. 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 VTBNX 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 3.73% for VTBNX.
Holdings Overlap
VGIT and VTBNX share 83 holdings out of 8099 unique holdings combined, representing a 16.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VGIT | Weight in VTBNX | Difference |
|---|---|---|---|
| T 4.625 02/15/35 | 1.97% | 0.44% | 1.53% |
| T 4.25 05/15/35 | 1.91% | 0.42% | 1.49% |
| T 4.25 08/15/35 | 1.91% | 0.42% | 1.49% |
| T 4.25 11/15/34 | Pro | Pro | Pro |
| T 4.375 05/15/34 | Pro | Pro | Pro |
| T 3.875 08/15/34 | Pro | Pro | Pro |
| T 4 02/15/34 | Pro | Pro | Pro |
| T 4.5 11/15/33 | Pro | Pro | Pro |
| T 3.875 08/15/33 | Pro | Pro | Pro |
| T 4 02/28/30 | Pro | Pro | Pro |
See all 10 holdings VGIT shares with VTBNX Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, VGIT or VTBNX?
VGIT has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VGIT or VTBNX?
Over the past year VGIT returned +1.32% vs -1.67% for VTBNX, so VGIT leads on 1-year performance. Over the longest common window we track (5 years), VGIT annualized +0.75% vs -3.45% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VGIT or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs VTBNX -21.5%.
Should I hold both VGIT and VTBNX?
VGIT and VTBNX have a monthly-return correlation of 0.96, 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 VTBNX?
VGIT and VTBNX share 83 common holdings with a 16.0% weight overlap. Combined, they hold 8099 unique securities.
Which pays a higher dividend, VGIT or VTBNX?
VGIT yields 3.84% while VTBNX yields 3.73%, so VGIT currently pays the higher dividend yield.
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