VGIT vs VTILX
VGIT vs VTILX
Vanguard Intermediate Term Treasury ETF vs Vanguard Total International Bond II Index Fund Class Institutional
Quick Verdict
VGIT has a lower expense ratio. VGIT delivered stronger 1-year returns. VTILX offers more diversification with 1459 holdings.
Side-by-Side Comparison
| Metric | VGIT | VTILX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.07% | |
| AUM | $42.1B | $142.6B | |
| Dividend Yield | 3.84% | 4.12% | |
| Holdings | 106 | 7,391 | |
| YTD Return | -0.62% | -0.81% | |
| 1Y Return | +1.32% | -3.01% | |
| 3Y Return (annualized) | +3.60% | -0.47% | |
| 5Y Return (annualized) | -0.12% | - | |
| Volatility (annualized) | 4.3% | 6.0% | |
| Max Drawdown | -17.2% | -15.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Feb 17, 2021 |
VGIT vs VTILX Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US). Over the past year VGIT returned +1.32% while VTILX returned -3.01%. Year to date, VGIT is down 0.62% versus a loss of 0.81% for VTILX.
Over three years, VGIT compounded at +3.60% per year against -0.47% for VTILX. Across the full 5-year window we track, VGIT has the edge at +0.75% annualized vs -2.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTILX has been the more volatile fund, with annualized monthly volatility of 6.0% 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 -15.3% for VTILX. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGIT charges 0.03% per year while VTILX charges 0.07%. On a $10,000 position that is $3 vs $7 annually, a gap of $4 per year that compounds over a long holding period. On income, VGIT currently yields 3.84% against 4.12% for VTILX.
Holdings Overlap
VGIT and VTILX share 0 holdings out of 1543 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 VTILX?
VGIT has an expense ratio of 0.03% while VTILX charges 0.07%. VGIT is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VGIT or VTILX?
Over the past year VGIT returned +1.32% vs -3.01% for VTILX, so VGIT leads on 1-year performance. Over the longest common window we track (5 years), VGIT annualized +0.75% vs -2.80% for VTILX. Past performance does not guarantee future results.
Which is riskier, VGIT or VTILX?
VTILX has been the more volatile fund at 6.0% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs VTILX -15.3%.
Should I hold both VGIT and VTILX?
VGIT and VTILX have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and VTILX?
VGIT and VTILX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1543 unique securities.
Which pays a higher dividend, VGIT or VTILX?
VGIT yields 3.84% while VTILX yields 4.12%, so VTILX currently pays the higher dividend yield.
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