VIG vs VTBNX
Vanguard Dividend Appreciation ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. VIG delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VIG | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.02% | |
| AUM | $111.4B | $207.3B | |
| Dividend Yield | 1.49% | 3.79% | |
| Holdings | 335 | 15,623 | |
| YTD Return | +10.70% | -2.18% | |
| 1Y Return | +17.31% | -1.36% | |
| 3Y Return (annualized) | +16.80% | +0.83% | |
| 5Y Return (annualized) | +10.39% | -3.52% | |
| Volatility (annualized) | 13.3% | 6.3% | |
| Max Drawdown | -48.2% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Apr 21, 2006 | Feb 17, 2009 |
VIG vs VTBNX Performance
Vanguard Dividend Appreciation ETF (VIG) is a 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 VIG returned +17.31% while VTBNX returned -1.36%. Year to date, VIG is up 10.70% versus a loss of 2.18% for VTBNX.
Over three years, VIG compounded at +16.80% per year against +0.83% for VTBNX; over five years the annualized figures are +10.39% and -3.52% respectively. Across the full 5-year window we track, VIG has the edge at +8.60% annualized vs -3.52%. 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 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 -48.2% for VIG and -21.5% for VTBNX. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIG charges 0.04% per year while VTBNX 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 1.49% against 3.79% for VTBNX.
Holdings Overlap
VIG and VTBNX share 5 holdings out of 13054 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VIG | Weight in VTBNX | Difference |
|---|---|---|---|
| LRCX | 2.37% | 0.00% | 2.37% |
| MMC 4.75 03/15/39 | 0.35% | 0.00% | 0.35% |
| AON | 0.31% | 0.00% | 0.31% |
| HUBB | Pro | Pro | Pro |
| GMT | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VIG or VTBNX?
VIG has an expense ratio of 0.04% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VIG or VTBNX?
Over the past year VIG returned +17.31% vs -1.36% for VTBNX, so VIG leads on 1-year performance. Over the longest common window we track (5 years), VIG annualized +8.60% vs -3.52% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VIG or VTBNX?
VIG has been the more volatile fund at 13.3% annualized versus 6.3% for VTBNX. Worst drawdown: VIG -48.2% vs VTBNX -21.5%.
Should I hold both VIG and VTBNX?
VIG and VTBNX have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIG and VTBNX?
VIG and VTBNX share 5 common holdings with a 0.0% weight overlap. Combined, they hold 13054 unique securities.
Which pays a higher dividend, VIG or VTBNX?
VIG yields 1.49% while VTBNX yields 3.79%, so VTBNX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.