VIITX vs XLF
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs State Street Financial Select Sector SPDR ETF
Quick Verdict
VIITX has a lower expense ratio. XLF delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.
Side-by-Side Comparison
| Metric | VIITX | XLF | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.08% | |
| AUM | - | $56.2B | |
| Dividend Yield | 4.56% | 1.51% | |
| Holdings | 2,599 | 80 | |
| YTD Return | -1.94% | +6.98% | |
| 1Y Return | -1.39% | +12.14% | |
| 3Y Return (annualized) | +0.57% | +20.59% | |
| 5Y Return (annualized) | -2.33% | +10.49% | |
| Volatility (annualized) | 4.2% | 21.4% | |
| Max Drawdown | -15.0% | -83.8% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | Dec 16, 1998 |
VIITX vs XLF Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year VIITX returned -1.39% while XLF returned +12.14%. Year to date, VIITX is down 1.94% versus a gain of 6.98% for XLF.
Over three years, VIITX compounded at +0.57% per year against +20.59% for XLF; over five years the annualized figures are -2.33% and +10.49% respectively. Across the full 5-year window we track, XLF has the edge at +3.73% annualized vs -2.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -83.8% for XLF. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIITX charges 0.02% per year while XLF charges 0.08%. On a $10,000 position that is $2 vs $8 annually, a gap of $6 per year that compounds over a long holding period. On income, VIITX currently yields 4.56% against 1.51% for XLF.
Holdings Overlap
VIITX and XLF share 0 holdings out of 1262 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 XLF?
VIITX has an expense ratio of 0.02% while XLF charges 0.08%. VIITX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VIITX or XLF?
Over the past year VIITX returned -1.39% vs +12.14% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.33% vs +3.73% for XLF. Past performance does not guarantee future results.
Which is riskier, VIITX or XLF?
XLF has been the more volatile fund at 21.4% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs XLF -83.8%.
Should I hold both VIITX and XLF?
VIITX and XLF have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIITX and XLF?
VIITX and XLF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1262 unique securities.
Which pays a higher dividend, VIITX or XLF?
VIITX yields 4.56% while XLF yields 1.51%, so VIITX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.