VIITX vs VNQ
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Real Estate ETF
Quick Verdict
VIITX has a lower expense ratio. VNQ delivered stronger 1-year returns. VIITX offers more diversification with 2,599 holdings.
Side-by-Side Comparison
| Metric | VIITX | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.13% | |
| AUM | - | $39.3B | |
| Dividend Yield | 4.59% | 3.49% | |
| Holdings | 2,599 | 144 | |
| YTD Return | -1.99% | +13.46% | |
| 1Y Return | -1.44% | +13.14% | |
| 3Y Return (annualized) | +0.70% | +11.55% | |
| 5Y Return (annualized) | -2.33% | +2.33% | |
| Volatility (annualized) | 4.2% | 21.4% | |
| Max Drawdown | -15.0% | -75.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | Sep 23, 2004 |
VIITX vs VNQ Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year VIITX returned -1.44% while VNQ returned +13.14%. Year to date, VIITX is down 1.99% versus a gain of 13.46% for VNQ.
Over three years, VIITX compounded at +0.70% per year against +11.55% for VNQ; over five years the annualized figures are -2.33% and +2.33% respectively. Across the full 5-year window we track, VNQ has the edge at +4.13% annualized vs -2.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -15.0% for VIITX and -75.8% for VNQ. 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
VIITX charges 0.02% per year while VNQ charges 0.13%. On a $10,000 position that is $2 vs $13 annually, a gap of $11 per year that compounds over a long holding period. On income, VIITX currently yields 4.59% against 3.49% for VNQ.
Holdings Overlap
VIITX and VNQ share 0 holdings out of 1329 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, VIITX or VNQ?
VIITX has an expense ratio of 0.02% while VNQ charges 0.13%. VIITX is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, VIITX or VNQ?
Over the past year VIITX returned -1.44% vs +13.14% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.33% vs +4.13% for VNQ. Past performance does not guarantee future results.
Which is riskier, VIITX or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VNQ -75.8%.
Should I hold both VIITX and VNQ?
VIITX and VNQ 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 VIITX and VNQ?
VIITX and VNQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1329 unique securities.
Which pays a higher dividend, VIITX or VNQ?
VIITX yields 4.59% while VNQ yields 3.49%, so VIITX currently pays the higher dividend yield.
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