VIITX vs VTBNX
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VIITX delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VIITX | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.02% | |
| AUM | - | $207.3B | |
| Dividend Yield | 4.59% | 3.79% | |
| Holdings | 2,599 | 15,623 | |
| YTD Return | -1.99% | -2.70% | |
| 1Y Return | -1.44% | -1.68% | |
| 3Y Return (annualized) | +0.70% | +0.65% | |
| 5Y Return (annualized) | -2.33% | -3.62% | |
| Volatility (annualized) | 4.2% | 6.3% | |
| Max Drawdown | -15.0% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Dec 1, 1997 | Feb 17, 2009 |
VIITX vs VTBNX Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund 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 VIITX returned -1.44% while VTBNX returned -1.68%. Year to date, VIITX is down 1.99% versus a loss of 2.70% for VTBNX.
Over three years, VIITX compounded at +0.70% per year against +0.65% for VTBNX; over five years the annualized figures are -2.33% and -3.62% respectively. Across the full 5-year window we track, VIITX has the edge at -2.33% annualized vs -3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -15.0% for VIITX 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VIITX charges 0.02% per year while VTBNX charges 0.02%. On a $10,000 position that is $2 vs $2 annually. On income, VIITX currently yields 4.59% against 3.79% for VTBNX.
Holdings Overlap
VIITX and VTBNX share 767 holdings out of 13146 unique holdings combined, representing a 3.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VIITX | Weight in VTBNX | Difference |
|---|---|---|---|
| T 4.125 07/31/28 | 1.25% | 0.13% | 1.12% |
| T 1 07/31/28 | 0.50% | 0.19% | 0.31% |
| FR SD8134 | 0.56% | 0.04% | 0.52% |
| G2 MA7533 | Pro | Pro | Pro |
| T 1.375 10/31/28 | Pro | Pro | Pro |
| T 4.25 02/28/29 | Pro | Pro | Pro |
| FN MA4236 | Pro | Pro | Pro |
| FN MA4237 | Pro | Pro | Pro |
| PNC V5.492 05/14/30 | Pro | Pro | Pro |
| FORDF 2025-1 A1 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VIITX or VTBNX?
VIITX has an expense ratio of 0.02% while VTBNX charges 0.02%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VIITX or VTBNX?
Over the past year VIITX returned -1.44% vs -1.68% for VTBNX, so VIITX leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.33% vs -3.62% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VIITX or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VTBNX -21.5%.
Should I hold both VIITX and VTBNX?
VIITX and VTBNX have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VIITX and VTBNX?
VIITX and VTBNX share 767 common holdings with a 3.7% weight overlap. Combined, they hold 13146 unique securities.
Which pays a higher dividend, VIITX or VTBNX?
VIITX yields 4.59% while VTBNX yields 3.79%, so VIITX currently pays the higher dividend yield.
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