VIG vs VIITX

Quick Verdict

VIITX has a lower expense ratio. VIG delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.

Lower Fees: VIITXHigher Returns: VIGMore Diversified: VIITX

Side-by-Side Comparison

MetricVIGVIITXWinner
Expense Ratio0.04%0.02%
AUM$110.2B-
Dividend Yield1.79%4.56%
Holdings3352,599
YTD Return+12.71%-1.94%
1Y Return+19.37%-1.39%
3Y Return (annualized)+16.71%+0.57%
5Y Return (annualized)+10.78%-2.33%
Volatility (annualized)13.3%4.2%
Max Drawdown-48.2%-15.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionApr 21, 2006Dec 1, 1997

VIG vs VIITX Performance

Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year VIG returned +19.37% while VIITX returned -1.39%. Year to date, VIG is up 12.71% versus a loss of 1.94% for VIITX.

Over three years, VIG compounded at +16.71% per year against +0.57% for VIITX; over five years the annualized figures are +10.78% and -2.33% respectively. Across the full 5-year window we track, VIG has the edge at +8.71% annualized vs -2.33%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VIG has been the more volatile fund, with annualized monthly volatility of 13.3% compared with 4.2% for VIITX. 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 -48.2% for VIG and -15.0% for VIITX. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VIG charges 0.04% per year while VIITX charges 0.02%. On a $10,000 position that is $4 vs $2 annually, a gap of $2 per year that compounds over a long holding period. On income, VIG currently yields 1.79% against 4.56% for VIITX.

Holdings Overlap

0.1%overlap

VIG and VIITX share 1 holdings out of 1515 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VIGWeight in VIITXDifference
CAH0.24%0.08%0.16%

Frequently Asked Questions

Which is cheaper, VIG or VIITX?

VIG has an expense ratio of 0.04% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VIG or VIITX?

Over the past year VIG returned +19.37% vs -1.39% for VIITX, so VIG leads on 1-year performance. Over the longest common window we track (5 years), VIG annualized +8.71% vs -2.33% for VIITX. Past performance does not guarantee future results.

Which is riskier, VIG or VIITX?

VIG has been the more volatile fund at 13.3% annualized versus 4.2% for VIITX. Worst drawdown: VIG -48.2% vs VIITX -15.0%.

Should I hold both VIG and VIITX?

VIG and VIITX have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VIG and VIITX?

VIG and VIITX share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1515 unique securities.

Which pays a higher dividend, VIG or VIITX?

VIG yields 1.79% while VIITX yields 4.56%, so VIITX currently pays the higher dividend yield.

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