VOE vs VTBNX
Vanguard Morningstar Mid-Cap Value ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Which is better, VOE or VTBNX?
Mid Cap Value against Long Term High Quality.
VTBNX has a lower expense ratio.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VOE | VTBNX |
|---|---|---|
| Expense Ratio | 0.05% | 0.02%Best |
| AUM | $23.9B | $207.3B |
| Dividend Yield | 1.80% | 3.80% |
| Holdings | 176 | 14,920 |
| YTD Price Return | +14.74% | -3.85% |
| 1Y Price Return | +17.75% | -4.44% |
| 3Y Price Return (annualized) | +14.66% | +0.07% |
| 5Y Price Return (annualized) | +7.42% | -3.83% |
| Volatility (annualized) | 16.3% | 6.3%Best |
| Max Drawdown | -20.5%Best | -21.5% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Mid Cap Value | Long Term High Quality |
| Inception | Aug 17, 2006 | Feb 17, 2009 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VOE currently yields 1.80% and VTBNX 3.80%.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 10, 2026 (5 years).
VOE vs VTBNX Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) is an ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VOE's price moved +17.75% and VTBNX's -4.44%, before the income each one paid out.
Over three years, VOE compounded at +14.66% per year against +0.07% for VTBNX; over five years the annualized figures are +7.42% and -3.83% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOE has been the more volatile fund, with annualized monthly volatility of 16.3% compared with 6.3% for VTBNX. 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 -20.5% for VOE and -21.5% for VTBNX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VOE charges 0.05% per year while VTBNX charges 0.02%. On a $10,000 position that is $5 vs $2 annually, a gap of $3 per year that compounds over a long holding period. On income, VOE currently yields 1.80% against 3.80% for VTBNX.
Structure and taxes
VTBNX is a mutual fund and VOE is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
At least 3.2% of VOE's money is in holdings VTBNX also owns.
Stated as a floor: for VTBNX, our book for it covers 61.9% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VOE and VTBNX share little of their money.
7 positions in common, counted across the 169 positions we hold weights for in VOE and 12,623 in VTBNX, against full books of 176 and 14,920.
Top Shared Holdings
| Stock | Weight in VOE | Weight in VTBNX | Difference |
|---|---|---|---|
| KDPKeurig Dr Pepper | 0.73% | 0.00% | 0.73% |
| NSC 3.942 11/01/47Norfolk Southern Corp | 0.61% | 0.00% | 0.61% |
| TRVTravelers Cos., Inc. | 0.61% | 0.00% | 0.61% |
| AONAon Plc | 0.58% | 0.00% | 0.58% |
| CNPCenterpoint Energy Inc. | 0.50% | 0.00% | 0.50% |
| HUBBHubbell Inc. Class B | 0.12% | 0.00% | 0.12% |
| LEN 4.75 11/29/27Lennar Corp | 0.03% | 0.00% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of VOE and VTBNX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VOE or VTBNX?
VOE has an expense ratio of 0.05% while VTBNX charges 0.02%. VTBNX is the cheaper option, by $3 a year on a $10,000 investment.
Which is riskier, VOE or VTBNX?
VOE has been the more volatile fund at 16.3% annualized versus 6.3% for VTBNX. Worst drawdown: VOE -20.5% vs VTBNX -21.5%.
Should I hold both VOE and VTBNX?
VOE and VTBNX have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VOE and VTBNX?
At least 3.2% of VOE's money is in holdings VTBNX also owns. Our book for VTBNX is partial, so the real figure is this or higher. They hold 7 positions in common, counted across the 169 positions we hold weights for in VOE and 12,623 in VTBNX.
Which pays a higher dividend, VOE or VTBNX?
VOE yields 1.80% while VTBNX yields 3.80%, so VTBNX currently pays the higher dividend yield.
Is it better to hold VTBNX or VOE in a taxable account?
VOE is an ETF and VTBNX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTBNX better than VOE?
VTBNX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.