VGIT vs VTBNX
Vanguard Intermediate Term Treasury ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Which is better, VGIT or VTBNX?
Nearly the same fund. VTBNX costs less.
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VGIT | VTBNX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $39.8B | $207.3B |
| Dividend Yield | 3.90% | 4.16% |
| Holdings | 105 | 15,871 |
| YTD Price Return | -5.36% | -5.20% |
| 1Y Price Return | -5.39% | -5.49% |
| 3Y Price Return (annualized) | -0.18% | +0.33% |
| 5Y Price Return (annualized) | -3.32% | -3.83% |
| Volatility (annualized) | 5.4%Best | 6.4% |
| Max Drawdown | -16.7%Best | -20.8% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | - | Long Term High Quality |
| Inception | Nov 19, 2009 | Feb 17, 2009 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VGIT currently yields 3.90% and VTBNX 4.16%.
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2021 to Oct 8, 2026 (5 years).
VGIT vs VTBNX Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is an 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's price moved -5.39% and VTBNX's -5.49%, before the income each one paid out.
Over three years, VGIT compounded at -0.18% per year against +0.33% for VTBNX; over five years the annualized figures are -3.32% and -3.83% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.4% compared with 5.4% 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 -16.7% for VGIT and -20.8% for VTBNX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 3.90% against 4.16% for VTBNX.
Structure and taxes
VTBNX is a mutual fund and VGIT is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 74 holdings in VGIT and 12,623 in VTBNX, totalling 72.4% and 61.9% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 72 positions appear in both.
The two holdings books were reported 62 days apart, VGIT as of Aug 31, 2026 and VTBNX as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
72 positions in common, counted across the 74 positions we hold weights for in VGIT and 12,623 in VTBNX, against full books of 105 and 15,871.
Top Shared Holdings
| Stock | Weight in VGIT | Weight in VTBNX | Difference |
|---|---|---|---|
| T 4.375 05/15/34United States Treasury Note/Bondus Treasury N/B | 1.93% | 0.35% | 1.58% |
| T 4.625 02/15/35Us T-Note 4.625% 02/15/35 | 1.92% | 0.36% | 1.56% |
| T 4.25 11/15/34Us Treas Nts 4.25% 11/15/34 | 1.88% | 0.35% | 1.53% |
| T 3.875 08/15/34Us Treas Nts 3.875% 08/15/34 | 1.87% | 0.33% | 1.54% |
| T 4.25 05/15/35Us Treas Nts 4.25% 05/15/35 | 1.83% | 0.37% | 1.46% |
| T 4.25 08/15/35United States Treasury Note/Bond 4.25% 08/15/2035 | 1.82% | 0.37% | 1.45% |
| T 4 02/15/34United States Treasury 4.00% 15-Feb-2034 | 1.83% | 0.33% | 1.50% |
| T 4.5 11/15/33United States Treasury Note/Bond 4.50% 11/15/2033 | 1.81% | 0.34% | 1.47% |
| T 4 02/28/30Us Treasury 4.0% | 1.63% | 0.33% | 1.30% |
| T 3.875 08/15/33United States Treasury Note/Bond 3.88% 08/15/2033 | 1.65% | 0.29% | 1.36% |
You are not choosing between two funds in isolation.
Whichever of VGIT and VTBNX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $1 a year on a $10,000 investment.
Which is riskier, VGIT or VTBNX?
VTBNX has been the more volatile fund at 6.4% annualized versus 5.4% for VGIT. Worst drawdown: VGIT -16.7% vs VTBNX -20.8%.
Should I hold both VGIT and VTBNX?
VGIT and VTBNX have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VGIT or VTBNX?
VGIT yields 3.90% while VTBNX yields 4.16%, so VTBNX currently pays the higher dividend yield.
Is it better to hold VTBNX or VGIT in a taxable account?
VGIT is an ETF and VTBNX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTBNX better than VGIT?
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.