VGIT vs VWIUX
Vanguard Intermediate Term Treasury ETF vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Which is better, VGIT or VWIUX?
VGIT costs less.
VGIT has a lower expense ratio.
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 | VWIUX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.09% |
| AUM | $50.8B | $86.4B |
| Dividend Yield | 3.90% | 3.15% |
| Holdings | 106 | 16,181 |
| YTD Price Return | -4.19% | -4.06% |
| 1Y Price Return | -4.71% | -3.57% |
| 3Y Price Return (annualized) | -0.10% | -0.05% |
| 5Y Price Return (annualized) | -3.32% | -2.23% |
| Volatility (annualized) | 5.3%Best | 5.4% |
| Max Drawdown | -17.6% | -15.9%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Tax Preferred |
| Style | - | Municipal Bond |
| Inception | Nov 19, 2009 | Feb 12, 2001 |
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 VWIUX 3.15%.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 16, 2026 (5 years).
VGIT vs VWIUX Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is an ETF from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VGIT's price moved -4.71% and VWIUX's -3.57%, before the income each one paid out.
Over three years, VGIT compounded at -0.10% per year against -0.05% for VWIUX; over five years the annualized figures are -3.32% and -2.23% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWIUX has been the more volatile fund, with annualized monthly volatility of 5.4% compared with 5.3% 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 -17.6% for VGIT and -15.9% for VWIUX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGIT charges 0.03% per year while VWIUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VGIT currently yields 3.90% against 3.15% for VWIUX.
Structure and taxes
VWIUX 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.
You are not choosing between two funds in isolation.
Whichever of VGIT and VWIUX 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 VWIUX?
VGIT has an expense ratio of 0.03% while VWIUX charges 0.09%. VGIT is the cheaper option, by $6 a year on a $10,000 investment.
Which is riskier, VGIT or VWIUX?
VWIUX has been the more volatile fund at 5.4% annualized versus 5.3% for VGIT. Worst drawdown: VGIT -17.6% vs VWIUX -15.9%.
Should I hold both VGIT and VWIUX?
VGIT and VWIUX have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VGIT or VWIUX?
VGIT yields 3.90% while VWIUX yields 3.15%, so VGIT currently pays the higher dividend yield.
Is it better to hold VWIUX or VGIT in a taxable account?
VGIT is an ETF and VWIUX 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 VWIUX better than VGIT?
VGIT has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.