VTBNX vs VWIUX
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Quick Verdict
VTBNX has a lower expense ratio. VWIUX delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | VWIUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.09% | |
| AUM | $207.3B | $86.4B | |
| Dividend Yield | 3.79% | 3.13% | |
| Holdings | 15,623 | 15,066 | |
| YTD Return | -2.70% | -1.81% | |
| 1Y Return | -1.68% | +0.89% | |
| 3Y Return (annualized) | +0.65% | +0.67% | |
| 5Y Return (annualized) | -3.62% | -1.82% | |
| Volatility (annualized) | 6.3% | 5.4% | |
| Max Drawdown | -21.5% | -16.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Feb 17, 2009 | Feb 12, 2001 |
VTBNX vs VWIUX Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VTBNX returned -1.68% while VWIUX returned +0.89%. Year to date, VTBNX is down 2.70% versus a loss of 1.81% for VWIUX.
Over three years, VTBNX compounded at +0.65% per year against +0.67% for VWIUX; over five years the annualized figures are -3.62% and -1.82% respectively. Across the full 5-year window we track, VWIUX has the edge at -1.82% 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 5.4% for VWIUX. 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 -16.1% for VWIUX. 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTBNX charges 0.02% per year while VWIUX charges 0.09%. On a $10,000 position that is $2 vs $9 annually, a gap of $7 per year that compounds over a long holding period. On income, VTBNX currently yields 3.79% against 3.13% for VWIUX.
Holdings Overlap
VTBNX and VWIUX share 0 holdings out of 14491 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTBNX or VWIUX?
VTBNX has an expense ratio of 0.02% while VWIUX charges 0.09%. VTBNX is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, VTBNX or VWIUX?
Over the past year VTBNX returned -1.68% vs +0.89% for VWIUX, so VWIUX leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.62% vs -1.82% for VWIUX. Past performance does not guarantee future results.
Which is riskier, VTBNX or VWIUX?
VTBNX has been the more volatile fund at 6.3% annualized versus 5.4% for VWIUX. Worst drawdown: VTBNX -21.5% vs VWIUX -16.1%.
Should I hold both VTBNX and VWIUX?
VTBNX and VWIUX have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VTBNX and VWIUX?
VTBNX and VWIUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 14491 unique securities.
Which pays a higher dividend, VTBNX or VWIUX?
VTBNX yields 3.79% while VWIUX yields 3.13%, so VTBNX currently pays the higher dividend yield.
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