VGK vs VTBNX
Vanguard FTSE Europe ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Which is better, VGK or VTBNX?
Large Cap Blend against Long Term High Quality.
VTBNX 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 | VGK | VTBNX |
|---|---|---|
| Expense Ratio | 0.06% | 0.02%Best |
| AUM | $38.5B | $207.3B |
| Dividend Yield | 2.81% | 3.80% |
| Holdings | 1,240 | 14,920 |
| YTD Price Return | +6.46% | -3.85% |
| 1Y Price Return | +13.05% | -4.44% |
| 3Y Price Return (annualized) | +14.61% | +0.07% |
| 5Y Price Return (annualized) | +5.37% | -3.83% |
| Volatility (annualized) | 17.3% | 6.3%Best |
| Max Drawdown | -35.0% | -21.5%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Long Term High Quality |
| Inception | Mar 4, 2005 | 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. VGK currently yields 2.81% and VTBNX 3.80%.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 10, 2026 (5 years).
VGK vs VTBNX Performance
Vanguard FTSE Europe ETF (VGK) 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 VGK's price moved +13.05% and VTBNX's -4.44%, before the income each one paid out.
Over three years, VGK compounded at +14.61% per year against +0.07% for VTBNX; over five years the annualized figures are +5.37% and -3.83% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 6.3% for VTBNX. 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 -35.0% for VGK and -21.5% 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGK charges 0.06% per year while VTBNX charges 0.02%. On a $10,000 position that is $6 vs $2 annually, a gap of $4 per year that compounds over a long holding period. On income, VGK currently yields 2.81% against 3.80% for VTBNX.
Structure and taxes
VTBNX is a mutual fund and VGK 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 1,178 holdings in VGK and 12,623 in VTBNX, totalling 94.9% and 61.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,178 positions we hold weights for in VGK and 12,623 in VTBNX, against full books of 1,240 and 14,920.
You are not choosing between two funds in isolation.
Whichever of VGK 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, VGK or VTBNX?
VGK has an expense ratio of 0.06% while VTBNX charges 0.02%. VTBNX is the cheaper option, by $4 a year on a $10,000 investment.
Which is riskier, VGK or VTBNX?
VGK has been the more volatile fund at 17.3% annualized versus 6.3% for VTBNX. Worst drawdown: VGK -35.0% vs VTBNX -21.5%.
Should I hold both VGK and VTBNX?
VGK and VTBNX have a monthly-return correlation of 0.71, 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, VGK or VTBNX?
VGK yields 2.81% while VTBNX yields 3.80%, so VTBNX currently pays the higher dividend yield.
Is it better to hold VTBNX or VGK in a taxable account?
VGK 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 VGK?
VTBNX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.