VIITX vs VTI
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VIITX has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VIITX | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.03% | |
| AUM | - | $666.9B | |
| Dividend Yield | 4.59% | 1.07% | |
| Holdings | 2,599 | 3,543 | |
| YTD Return | -1.66% | +12.65% | |
| 1Y Return | -1.16% | +21.39% | |
| 3Y Return (annualized) | +0.81% | +21.54% | |
| 5Y Return (annualized) | -2.27% | +12.11% | |
| Volatility (annualized) | 4.2% | 15.3% | |
| Max Drawdown | -15.0% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | May 24, 2001 |
VIITX vs VTI Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VIITX returned -1.16% while VTI returned +21.39%. Year to date, VIITX is down 1.66% versus a gain of 12.65% for VTI.
Over three years, VIITX compounded at +0.81% per year against +21.54% for VTI; over five years the annualized figures are -2.27% and +12.11% respectively. Across the full 5-year window we track, VTI has the edge at +8.07% annualized vs -2.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIITX charges 0.02% per year while VTI 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 4.59% against 1.07% for VTI.
Holdings Overlap
VIITX and VTI share 3 holdings out of 3969 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VIITX or VTI?
VIITX has an expense ratio of 0.02% while VTI 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 VTI?
Over the past year VIITX returned -1.16% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.27% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, VIITX or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VTI -56.6%.
Should I hold both VIITX and VTI?
VIITX and VTI have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIITX and VTI?
VIITX and VTI share 3 common holdings with a 0.1% weight overlap. Combined, they hold 3969 unique securities.
Which pays a higher dividend, VIITX or VTI?
VIITX yields 4.59% while VTI yields 1.07%, so VIITX currently pays the higher dividend yield.
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