VTBNX vs VTI
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTBNX has a lower expense ratio. VTI delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.03% | |
| AUM | $207.3B | $666.9B | |
| Dividend Yield | 3.79% | 1.07% | |
| Holdings | 15,623 | 3,543 | |
| YTD Return | -2.70% | +13.14% | |
| 1Y Return | -1.68% | +22.35% | |
| 3Y Return (annualized) | +0.65% | +21.83% | |
| 5Y Return (annualized) | -3.62% | +12.01% | |
| Volatility (annualized) | 6.3% | 15.3% | |
| Max Drawdown | -21.5% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | May 24, 2001 |
VTBNX vs VTI Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VTBNX returned -1.68% while VTI returned +22.35%. Year to date, VTBNX is down 2.70% versus a gain of 13.14% for VTI.
Over three years, VTBNX compounded at +0.65% per year against +21.83% for VTI; over five years the annualized figures are -3.62% and +12.01% respectively. Across the full 5-year window we track, VTI has the edge at +8.09% annualized vs -3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -21.5% for VTBNX and -56.6% for VTI. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTBNX charges 0.02% per year while VTI charges 0.03%. On a $10,000 position that is $2 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VTBNX currently yields 3.79% against 1.07% for VTI.
Holdings Overlap
VTBNX and VTI share 8 holdings out of 15507 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, VTBNX or VTI?
VTBNX has an expense ratio of 0.02% while VTI charges 0.03%. VTBNX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTBNX or VTI?
Over the past year VTBNX returned -1.68% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.62% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, VTBNX or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs VTI -56.6%.
Should I hold both VTBNX and VTI?
VTBNX and VTI have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTBNX and VTI?
VTBNX and VTI share 8 common holdings with a 0.1% weight overlap. Combined, they hold 15507 unique securities.
Which pays a higher dividend, VTBNX or VTI?
VTBNX yields 3.79% while VTI yields 1.07%, so VTBNX 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.