VOO vs VTBNX
Vanguard S&P 500 ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. VOO delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VOO | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $997.4B | $207.3B | |
| Dividend Yield | 1.08% | 3.79% | |
| Holdings | 509 | 15,623 | |
| YTD Return | +14.27% | -2.49% | |
| 1Y Return | +21.79% | -1.78% | |
| 3Y Return (annualized) | +22.19% | +0.50% | |
| 5Y Return (annualized) | +13.28% | -3.54% | |
| Volatility (annualized) | 14.2% | 6.3% | |
| Max Drawdown | -34.3% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Feb 17, 2009 |
VOO vs VTBNX Performance
Vanguard S&P 500 ETF (VOO) 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 VOO returned +21.79% while VTBNX returned -1.78%. Year to date, VOO is up 14.27% versus a loss of 2.49% for VTBNX.
Over three years, VOO compounded at +22.19% per year against +0.50% for VTBNX; over five years the annualized figures are +13.28% and -3.54% respectively. Across the full 5-year window we track, VOO has the edge at +13.59% annualized vs -3.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -34.3% for VOO 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while VTBNX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, VOO currently yields 1.08% against 3.79% for VTBNX.
Holdings Overlap
VOO and VTBNX share 8 holdings out of 13225 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or VTBNX?
VOO has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VOO or VTBNX?
Over the past year VOO returned +21.79% vs -1.78% for VTBNX, so VOO leads on 1-year performance. Over the longest common window we track (5 years), VOO annualized +13.59% vs -3.54% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VOO or VTBNX?
VOO has been the more volatile fund at 14.2% annualized versus 6.3% for VTBNX. Worst drawdown: VOO -34.3% vs VTBNX -21.5%.
Should I hold both VOO and VTBNX?
VOO and VTBNX have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and VTBNX?
VOO and VTBNX share 8 common holdings with a 0.1% weight overlap. Combined, they hold 13225 unique securities.
Which pays a higher dividend, VOO or VTBNX?
VOO yields 1.08% while VTBNX yields 3.79%, so VTBNX currently pays the higher dividend yield.
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