VOO vs VTBNX
Vanguard S&P 500 ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Which is better, VOO or VTBNX?
Large Cap Blend 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 | VOO | VTBNX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $997.4B | $207.3B |
| Dividend Yield | 1.08% | 3.79% |
| Holdings | 509 | 14,920 |
| YTD Price Return | +12.69% | -2.91% |
| 1Y Price Return | +18.68% | -2.81% |
| 3Y Price Return (annualized) | +19.71% | +0.40% |
| 5Y Price Return (annualized) | +11.29% | -3.57% |
| Volatility (annualized) | 15.8% | 6.3%Best |
| Max Drawdown | -25.4% | -21.5%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Long Term High Quality |
| Inception | Sep 7, 2010 | 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. VOO currently yields 1.08% and VTBNX 3.79%.
Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2021 to Sep 4, 2026 (5 years).
VOO vs VTBNX Performance
Vanguard S&P 500 ETF (VOO) 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 VOO's price moved +18.68% and VTBNX's -2.81%, before the income each one paid out.
Over three years, VOO compounded at +19.71% per year against +0.40% for VTBNX; over five years the annualized figures are +11.29% and -3.57% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -25.4% for VOO 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 0.62. They move together some of the time, and apart the rest.
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.
Structure and taxes
VTBNX is a mutual fund and VOO 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 1.5% of VOO's money is in holdings VTBNX also owns.
Stated as a floor: for VTBNX, our book for it covers 64.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VOO and VTBNX share little of their money.
The two holdings books were reported 91 days apart, VOO as of Jun 30, 2026 and VTBNX as of Mar 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
8 positions in common, counted across the 505 positions we hold weights for in VOO and 12,728 in VTBNX, against full books of 509 and 14,920.
Top Shared Holdings
| Stock | Weight in VOO | Weight in VTBNX | Difference |
|---|---|---|---|
| LRCXLam Research Corp | 0.84% | 0.00% | 0.84% |
| DUKDuke Energy Corp | 0.15% | 0.01% | 0.14% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.12% | 0.04% | 0.08% |
| MMC 4.75 03/15/39Marsh & Mclennan Cos Inc | 0.12% | 0.00% | 0.12% |
| AONAon Public Limited Company Cl. A | 0.11% | 0.00% | 0.11% |
| KDPKeurig Dr Pepper Inc (kdp Us) | 0.07% | 0.00% | 0.07% |
| HUBBHubbell Inc | 0.04% | 0.00% | 0.04% |
| CNPCenterpoint Energy Inc. | 0.04% | 0.00% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of VOO 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, VOO or VTBNX?
VOO has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, VOO or VTBNX?
VOO has been the more volatile fund at 15.8% annualized versus 6.3% for VTBNX. Worst drawdown: VOO -25.4% vs VTBNX -21.5%.
Should I hold both VOO and VTBNX?
VOO and VTBNX have a monthly-return correlation of 0.62, 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 VOO and VTBNX?
At least 1.5% of VOO's money is in holdings VTBNX also owns. Our book for VTBNX is partial, so the real figure is this or higher. They hold 8 positions in common, counted across the 505 positions we hold weights for in VOO and 12,728 in VTBNX.
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.
Is it better to hold VTBNX or VOO in a taxable account?
VOO 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 VOO?
VTBNX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.