VTBNX vs VTV
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Morningstar Value ETF
Quick Verdict
VTBNX has a lower expense ratio. VTV delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | VTV | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.03% | |
| AUM | $207.3B | $187.8B | |
| Dividend Yield | 3.79% | 1.85% | |
| Holdings | 15,623 | 311 | |
| YTD Return | -2.49% | +18.65% | |
| 1Y Return | -1.68% | +27.73% | |
| 3Y Return (annualized) | +0.72% | +19.75% | |
| 5Y Return (annualized) | -3.58% | +12.58% | |
| Volatility (annualized) | 6.3% | 14.5% | |
| Max Drawdown | -21.5% | -61.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | Jan 26, 2004 |
VTBNX vs VTV Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Value ETF (VTV) is a ETF from Vanguard (US). Over the past year VTBNX returned -1.68% while VTV returned +27.73%. Year to date, VTBNX is down 2.49% versus a gain of 18.65% for VTV.
Over three years, VTBNX compounded at +0.72% per year against +19.75% for VTV; over five years the annualized figures are -3.58% and +12.58% respectively. Across the full 5-year window we track, VTV has the edge at +7.62% annualized vs -3.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTV has been the more volatile fund, with annualized monthly volatility of 14.5% 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 -61.3% for VTV. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTBNX charges 0.02% per year while VTV 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 1.85% for VTV.
Holdings Overlap
VTBNX and VTV share 9 holdings out of 13027 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTBNX | Weight in VTV | Difference |
|---|---|---|---|
| DUK | 0.01% | 0.37% | 0.36% |
| TMUS | 0.04% | 0.27% | 0.23% |
| MMC 4.75 03/15/39 | 0.00% | 0.30% | 0.30% |
| AON | Pro | Pro | Pro |
| KDP | Pro | Pro | Pro |
| SHW 4.5 06/01/47 | Pro | Pro | Pro |
| CNP | Pro | Pro | Pro |
| HUBB | Pro | Pro | Pro |
| LEN 4.75 11/29/27 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VTBNX or VTV?
VTBNX has an expense ratio of 0.02% while VTV 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 VTV?
Over the past year VTBNX returned -1.68% vs +27.73% for VTV, so VTV leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.58% vs +7.62% for VTV. Past performance does not guarantee future results.
Which is riskier, VTBNX or VTV?
VTV has been the more volatile fund at 14.5% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs VTV -61.3%.
Should I hold both VTBNX and VTV?
VTBNX and VTV have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTBNX and VTV?
VTBNX and VTV share 9 common holdings with a 0.1% weight overlap. Combined, they hold 13027 unique securities.
Which pays a higher dividend, VTBNX or VTV?
VTBNX yields 3.79% while VTV yields 1.85%, so VTBNX currently pays the higher dividend yield.
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