VIITX vs VO
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Mid-Cap ETF
Quick Verdict
VIITX has a lower expense ratio. VO delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.
Side-by-Side Comparison
| Metric | VIITX | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.03% | |
| AUM | - | $105.9B | |
| Dividend Yield | 4.56% | 1.53% | |
| Holdings | 2,599 | 293 | |
| YTD Return | -1.94% | +15.95% | |
| 1Y Return | -1.39% | +18.52% | |
| 3Y Return (annualized) | +0.57% | +16.94% | |
| 5Y Return (annualized) | -2.33% | +8.30% | |
| Volatility (annualized) | 4.2% | 16.9% | |
| Max Drawdown | -15.0% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | Jan 26, 2004 |
VIITX vs VO Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VIITX returned -1.39% while VO returned +18.52%. Year to date, VIITX is down 1.94% versus a gain of 15.95% for VO.
Over three years, VIITX compounded at +0.57% per year against +16.94% for VO; over five years the annualized figures are -2.33% and +8.30% respectively. Across the full 5-year window we track, VO has the edge at +9.30% annualized vs -2.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -60.3% for VO. 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
VIITX charges 0.02% per year while VO charges 0.03%. On a $10,000 position that is $2 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VIITX currently yields 4.56% against 1.53% for VO.
Holdings Overlap
VIITX and VO share 1 holdings out of 1463 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VIITX | Weight in VO | Difference |
|---|---|---|---|
| CAH | 0.08% | 0.54% | 0.46% |
Frequently Asked Questions
Which is cheaper, VIITX or VO?
VIITX has an expense ratio of 0.02% while VO charges 0.03%. VIITX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VIITX or VO?
Over the past year VIITX returned -1.39% vs +18.52% for VO, so VO leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.33% vs +9.30% for VO. Past performance does not guarantee future results.
Which is riskier, VIITX or VO?
VO has been the more volatile fund at 16.9% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VO -60.3%.
Should I hold both VIITX and VO?
VIITX and VO 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 VIITX and VO?
VIITX and VO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1463 unique securities.
Which pays a higher dividend, VIITX or VO?
VIITX yields 4.56% while VO yields 1.53%, so VIITX currently pays the higher dividend yield.
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