VOE vs VTBNX
Vanguard Morningstar Mid-Cap Value ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. VOE delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VOE | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.02% | |
| AUM | $23.9B | $207.3B | |
| Dividend Yield | 1.81% | 3.79% | |
| Holdings | 176 | 15,623 | |
| YTD Return | +17.73% | -2.70% | |
| 1Y Return | +24.83% | -1.68% | |
| 3Y Return (annualized) | +18.09% | +0.65% | |
| 5Y Return (annualized) | +10.27% | -3.62% | |
| Volatility (annualized) | 17.6% | 6.3% | |
| Max Drawdown | -63.4% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Aug 17, 2006 | Feb 17, 2009 |
VOE vs VTBNX Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) is a 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 returned +24.83% while VTBNX returned -1.68%. Year to date, VOE is up 17.73% versus a loss of 2.70% for VTBNX.
Over three years, VOE compounded at +18.09% per year against +0.65% for VTBNX; over five years the annualized figures are +10.27% and -3.62% respectively. Across the full 5-year window we track, VOE has the edge at +7.97% annualized vs -3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOE has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -63.4% for VOE and -21.5% for VTBNX. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.81% against 3.79% for VTBNX.
Holdings Overlap
VOE and VTBNX share 6 holdings out of 12891 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VOE | Weight in VTBNX | Difference |
|---|---|---|---|
| KDP | 0.73% | 0.00% | 0.73% |
| NSC 3.942 11/01/47 | 0.61% | 0.00% | 0.61% |
| AON | 0.58% | 0.00% | 0.58% |
| CNP | Pro | Pro | Pro |
| HUBB | Pro | Pro | Pro |
| LEN 4.75 11/29/27 | Pro | Pro | Pro |
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VOE or VTBNX?
Over the past year VOE returned +24.83% vs -1.68% for VTBNX, so VOE leads on 1-year performance. Over the longest common window we track (5 years), VOE annualized +7.97% vs -3.62% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VOE or VTBNX?
VOE has been the more volatile fund at 17.6% annualized versus 6.3% for VTBNX. Worst drawdown: VOE -63.4% vs VTBNX -21.5%.
Should I hold both VOE and VTBNX?
VOE and VTBNX have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOE and VTBNX?
VOE and VTBNX share 6 common holdings with a 0.0% weight overlap. Combined, they hold 12891 unique securities.
Which pays a higher dividend, VOE or VTBNX?
VOE yields 1.81% while VTBNX yields 3.79%, so VTBNX currently pays the higher dividend yield.
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