VTBNX vs VTV
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Morningstar Value ETF
Which is better, VTBNX or VTV?
Long Term High Quality against Large Cap Value.
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 | VTBNX | VTV |
|---|---|---|
| Expense Ratio | 0.02%Best | 0.03% |
| AUM | $207.3B | $187.8B |
| Dividend Yield | 3.80% | 1.82% |
| Holdings | 14,920 | 311 |
| YTD Price Return | -3.95% | +16.16% |
| 1Y Price Return | -4.74% | +20.38% |
| 3Y Price Return (annualized) | +0.00% | +16.12% |
| 5Y Price Return (annualized) | -3.85% | +9.91% |
| Volatility (annualized) | 6.3%Best | 14.0% |
| Max Drawdown | -21.5% | -18.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term High Quality | Large Cap Value |
| Inception | Feb 17, 2009 | Jan 26, 2004 |
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. VTBNX currently yields 3.80% and VTV 1.82%.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 11, 2026 (5 years).
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 an ETF from Vanguard (US). Over the past year VTBNX's price moved -4.74% and VTV's +20.38%, before the income each one paid out.
Over three years, VTBNX compounded at +0.00% per year against +16.12% for VTV; over five years the annualized figures are -3.85% and +9.91% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTV has been the more volatile fund, with annualized monthly volatility of 14.0% 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 -18.1% for VTV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
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 3.80% against 1.82% for VTV.
Structure and taxes
VTBNX is a mutual fund and VTV 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 2.5% of VTV's money is in holdings VTBNX also owns.
Stated as a floor: for VTBNX, our book for it covers 61.9% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VTV and VTBNX share little of their money.
11 positions in common, counted across the 12,623 positions we hold weights for in VTBNX and 308 in VTV, against full books of 14,920 and 311.
Top Shared Holdings
| Stock | Weight in VTBNX | Weight in VTV | Difference |
|---|---|---|---|
| TAt&t, Inc. | 0.00% | 0.54% | 0.54% |
| DUKDuke Energy Corp. | 0.01% | 0.37% | 0.36% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.04% | 0.27% | 0.23% |
| MMC 4.75 03/15/39Marsh & Mclennan Cos Inc | 0.00% | 0.30% | 0.30% |
| TRVTravelers Cos., Inc. | 0.00% | 0.26% | 0.26% |
| AONAon Plc-Class A | 0.00% | 0.25% | 0.25% |
| KDPKeurig Dr Pepper Inc. | 0.00% | 0.16% | 0.16% |
| SHW 4.5 06/01/47Sherwin-williams Co/the | 0.01% | 0.15% | 0.14% |
| CNPCenterpoint Energy Inc. | 0.00% | 0.11% | 0.11% |
| HUBBHubbell Inc. Class B | 0.00% | 0.05% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of VTBNX and VTV 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, VTBNX or VTV?
VTBNX has an expense ratio of 0.02% while VTV charges 0.03%. VTBNX is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, VTBNX or VTV?
VTV has been the more volatile fund at 14.0% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs VTV -18.1%.
Should I hold both VTBNX and VTV?
VTBNX and VTV have a monthly-return correlation of 0.59, 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 VTBNX and VTV?
At least 2.5% of VTV's money is in holdings VTBNX also owns. Our book for VTBNX is partial, so the real figure is this or higher. They hold 11 positions in common, counted across the 12,623 positions we hold weights for in VTBNX and 308 in VTV.
Which pays a higher dividend, VTBNX or VTV?
VTBNX yields 3.80% while VTV yields 1.82%, so VTBNX currently pays the higher dividend yield.
Is it better to hold VTBNX or VTV in a taxable account?
VTV 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 VTV better than VTBNX?
VTBNX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.