VIITX vs VYM
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard High Dividend Yield ETF
Quick Verdict
VIITX has a lower expense ratio. VYM delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.
Side-by-Side Comparison
| Metric | VIITX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 4.56% | 2.86% | |
| Holdings | 2,599 | 568 | |
| YTD Return | -2.08% | +16.16% | |
| 1Y Return | -1.49% | +26.05% | |
| 3Y Return (annualized) | +0.49% | +18.43% | |
| 5Y Return (annualized) | -2.31% | +12.21% | |
| Volatility (annualized) | 4.2% | 14.6% | |
| Max Drawdown | -15.0% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | Nov 10, 2006 |
VIITX vs VYM Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VIITX returned -1.49% while VYM returned +26.05%. Year to date, VIITX is down 2.08% versus a gain of 16.16% for VYM.
Over three years, VIITX compounded at +0.49% per year against +18.43% for VYM; over five years the annualized figures are -2.31% and +12.21% respectively. Across the full 5-year window we track, VYM has the edge at +7.09% annualized vs -2.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIITX charges 0.02% per year while VYM charges 0.04%. On a $10,000 position that is $2 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, VIITX currently yields 4.56% against 2.86% for VYM.
Holdings Overlap
VIITX and VYM share 1 holdings out of 1742 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 VYM | Difference |
|---|---|---|---|
| CAH | 0.08% | 0.24% | 0.16% |
Frequently Asked Questions
Which is cheaper, VIITX or VYM?
VIITX has an expense ratio of 0.02% while VYM charges 0.04%. VIITX is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VIITX or VYM?
Over the past year VIITX returned -1.49% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.31% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, VIITX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VYM -58.8%.
Should I hold both VIITX and VYM?
VIITX and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIITX and VYM?
VIITX and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1742 unique securities.
Which pays a higher dividend, VIITX or VYM?
VIITX yields 4.56% while VYM yields 2.86%, so VIITX currently pays the higher dividend yield.
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