VIITX vs VUG
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Growth ETF
Quick Verdict
VIITX has a lower expense ratio. VUG delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.
Side-by-Side Comparison
| Metric | VIITX | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.03% | |
| AUM | - | $223.2B | |
| Dividend Yield | 4.56% | 0.47% | |
| Holdings | 2,599 | 155 | |
| YTD Return | -2.08% | +9.57% | |
| 1Y Return | -1.49% | +16.51% | |
| 3Y Return (annualized) | +0.49% | +24.05% | |
| 5Y Return (annualized) | -2.31% | +13.00% | |
| Volatility (annualized) | 4.2% | 16.5% | |
| Max Drawdown | -15.0% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | Jan 26, 2004 |
VIITX vs VUG Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VIITX returned -1.49% while VUG returned +16.51%. Year to date, VIITX is down 2.08% versus a gain of 9.57% for VUG.
Over three years, VIITX compounded at +0.49% per year against +24.05% for VUG; over five years the annualized figures are -2.31% and +13.00% respectively. Across the full 5-year window we track, VUG has the edge at +11.25% annualized vs -2.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIITX charges 0.02% per year while VUG 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 0.47% for VUG.
Holdings Overlap
VIITX and VUG share 0 holdings out of 1331 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 VUG?
VIITX has an expense ratio of 0.02% while VUG 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 VUG?
Over the past year VIITX returned -1.49% vs +16.51% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.31% vs +11.25% for VUG. Past performance does not guarantee future results.
Which is riskier, VIITX or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VUG -51.4%.
Should I hold both VIITX and VUG?
VIITX and VUG have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIITX and VUG?
VIITX and VUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1331 unique securities.
Which pays a higher dividend, VIITX or VUG?
VIITX yields 4.56% while VUG yields 0.47%, so VIITX currently pays the higher dividend yield.
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