VIITX vs VWO
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VIITX has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VIITX | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.06% | |
| AUM | - | $122.0B | |
| Dividend Yield | 4.59% | 2.39% | |
| Holdings | 2,599 | 6,334 | |
| YTD Return | -1.85% | +10.18% | |
| 1Y Return | -1.39% | +20.99% | |
| 3Y Return (annualized) | +0.75% | +18.45% | |
| 5Y Return (annualized) | -2.30% | +7.14% | |
| Volatility (annualized) | 4.2% | 20.1% | |
| Max Drawdown | -15.0% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | Mar 4, 2005 |
VIITX vs VWO Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VIITX returned -1.39% while VWO returned +20.99%. Year to date, VIITX is down 1.85% versus a gain of 10.18% for VWO.
Over three years, VIITX compounded at +0.75% per year against +18.45% for VWO; over five years the annualized figures are -2.30% and +7.14% respectively. Across the full 5-year window we track, VWO has the edge at +4.98% annualized vs -2.30%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 VWO charges 0.06%. On a $10,000 position that is $2 vs $6 annually, a gap of $4 per year that compounds over a long holding period. On income, VIITX currently yields 4.59% against 2.39% for VWO.
Holdings Overlap
VIITX and VWO share 0 holdings out of 5169 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 VWO?
VIITX has an expense ratio of 0.02% while VWO charges 0.06%. VIITX is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VIITX or VWO?
Over the past year VIITX returned -1.39% vs +20.99% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.30% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, VIITX or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VWO -68.3%.
Should I hold both VIITX and VWO?
VIITX and VWO 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 VWO?
VIITX and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5169 unique securities.
Which pays a higher dividend, VIITX or VWO?
VIITX yields 4.59% while VWO yields 2.39%, so VIITX currently pays the higher dividend yield.
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