VTBNX vs VV
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Large-Cap ETF
Quick Verdict
VTBNX has a lower expense ratio. VV delivered stronger 1-year returns. VTBNX offers more diversification with 8098 holdings.
Side-by-Side Comparison
| Metric | VTBNX | VV | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.03% | |
| AUM | $206.7B | $52.5B | |
| Dividend Yield | 3.73% | 1.25% | |
| Holdings | 15,623 | 446 | |
| YTD Return | -2.60% | +13.59% | |
| 1Y Return | -1.88% | +21.25% | |
| 3Y Return (annualized) | +0.40% | +21.81% | |
| 5Y Return (annualized) | -3.56% | +12.84% | |
| Volatility (annualized) | 6.3% | 14.8% | |
| Max Drawdown | -21.5% | -56.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | Jan 27, 2004 |
VTBNX vs VV Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Large-Cap ETF (VV) is a ETF from Vanguard (US). Over the past year VTBNX returned -1.88% while VV returned +21.25%. Year to date, VTBNX is down 2.60% versus a gain of 13.59% for VV.
Over three years, VTBNX compounded at +0.40% per year against +21.81% for VV; over five years the annualized figures are -3.56% and +12.84% respectively. Across the full 5-year window we track, VV has the edge at +9.52% annualized vs -3.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VV has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -21.5% for VTBNX and -56.0% for VV. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTBNX charges 0.02% per year while VV 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 3.73% against 1.25% for VV.
Holdings Overlap
VTBNX and VV share 7 holdings out of 8522 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 VV | Difference |
|---|---|---|---|
| DUK | 0.00% | 0.16% | 0.16% |
| MMC 4.75 03/15/39 | 0.01% | 0.13% | 0.12% |
| AON | 0.00% | 0.11% | 0.11% |
| KDP | 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 VV?
VTBNX has an expense ratio of 0.02% while VV 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 VV?
Over the past year VTBNX returned -1.88% vs +21.25% for VV, so VV leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.56% vs +9.52% for VV. Past performance does not guarantee future results.
Which is riskier, VTBNX or VV?
VV has been the more volatile fund at 14.8% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs VV -56.0%.
Should I hold both VTBNX and VV?
VTBNX and VV have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTBNX and VV?
VTBNX and VV share 7 common holdings with a 0.0% weight overlap. Combined, they hold 8522 unique securities.
Which pays a higher dividend, VTBNX or VV?
VTBNX yields 3.73% while VV yields 1.25%, so VTBNX currently pays the higher dividend yield.
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