VTBNX vs VTILX
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Total International Bond II Index Fund Class Institutional
Quick Verdict
VTBNX has a lower expense ratio. VTBNX delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | VTILX | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.07% | |
| AUM | $207.3B | $141.9B | |
| Dividend Yield | 3.79% | 4.19% | |
| Holdings | 15,623 | 7,391 | |
| YTD Return | -2.70% | -1.42% | |
| 1Y Return | -1.68% | -3.06% | |
| 3Y Return (annualized) | +0.65% | -0.37% | |
| 5Y Return (annualized) | -3.62% | - | |
| Volatility (annualized) | 6.3% | 6.0% | |
| Max Drawdown | -21.5% | -15.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Feb 17, 2009 | Feb 17, 2021 |
VTBNX vs VTILX Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US). Over the past year VTBNX returned -1.68% while VTILX returned -3.06%. Year to date, VTBNX is down 2.70% versus a loss of 1.42% for VTILX.
Over three years, VTBNX compounded at +0.65% per year against -0.37% for VTILX. Across the full 5-year window we track, VTILX has the edge at -2.90% annualized vs -3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% compared with 6.0% for VTILX. 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 -15.3% for VTILX. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTBNX charges 0.02% per year while VTILX charges 0.07%. On a $10,000 position that is $2 vs $7 annually, a gap of $5 per year that compounds over a long holding period. On income, VTBNX currently yields 3.79% against 4.19% for VTILX.
Holdings Overlap
VTBNX and VTILX share 10 holdings out of 14177 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 VTBNX | Weight in VTILX | Difference |
|---|---|---|---|
| RY 5 05/02/33 GMTN | 0.00% | 0.02% | 0.02% |
| SEK 4.125 06/14/28 | 0.00% | 0.01% | 0.01% |
| MUFG V5.406 04/19/34 | 0.01% | 0.00% | 0.01% |
| ISRAEL 4.125 01/17/4 | Pro | Pro | Pro |
| ORIX 2.25 03/09/31 | Pro | Pro | Pro |
| AMT 3.55 07/15/27 | Pro | Pro | Pro |
| TOYOTA 3.669 07/20/2 | Pro | Pro | Pro |
| WSTP 2.15 06/03/31 | Pro | Pro | Pro |
| IFC 0.75 08/27/30 | Pro | Pro | Pro |
| EIBKOR 1.25 09/21/30 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VTBNX or VTILX?
VTBNX has an expense ratio of 0.02% while VTILX charges 0.07%. VTBNX is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTBNX or VTILX?
Over the past year VTBNX returned -1.68% vs -3.06% for VTILX, so VTBNX leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.62% vs -2.90% for VTILX. Past performance does not guarantee future results.
Which is riskier, VTBNX or VTILX?
VTBNX has been the more volatile fund at 6.3% annualized versus 6.0% for VTILX. Worst drawdown: VTBNX -21.5% vs VTILX -15.3%.
Should I hold both VTBNX and VTILX?
VTBNX and VTILX have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTBNX and VTILX?
VTBNX and VTILX share 10 common holdings with a 0.0% weight overlap. Combined, they hold 14177 unique securities.
Which pays a higher dividend, VTBNX or VTILX?
VTBNX yields 3.79% while VTILX yields 4.19%, so VTILX currently pays the higher dividend yield.
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