VTBNX vs VXF
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Extended Market ETF
Quick Verdict
VTBNX has a lower expense ratio. VXF delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.05% | |
| AUM | $207.3B | $30.5B | |
| Dividend Yield | 3.79% | 1.03% | |
| Holdings | 15,623 | 3,376 | |
| YTD Return | -2.49% | +19.07% | |
| 1Y Return | -1.78% | +26.16% | |
| 3Y Return (annualized) | +0.50% | +20.39% | |
| 5Y Return (annualized) | -3.54% | +7.51% | |
| Volatility (annualized) | 6.3% | 18.8% | |
| Max Drawdown | -21.5% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | Dec 27, 2001 |
VTBNX vs VXF Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VTBNX returned -1.78% while VXF returned +26.16%. Year to date, VTBNX is down 2.49% versus a gain of 19.07% for VXF.
Over three years, VTBNX compounded at +0.50% per year against +20.39% for VXF; over five years the annualized figures are -3.54% and +7.51% respectively. Across the full 5-year window we track, VXF has the edge at +9.14% annualized vs -3.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -59.4% for VXF. 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 VXF charges 0.05%. On a $10,000 position that is $2 vs $5 annually, a gap of $3 per year that compounds over a long holding period. On income, VTBNX currently yields 3.79% against 1.03% for VXF.
Holdings Overlap
VTBNX and VXF share 4 holdings out of 16018 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 VXF | Difference |
|---|---|---|---|
| RPRX | 0.00% | 0.25% | 0.25% |
| NNN | 0.00% | 0.10% | 0.10% |
| CAG 5.4 11/01/48 | 0.00% | 0.07% | 0.07% |
| GMT | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VTBNX or VXF?
VTBNX has an expense ratio of 0.02% while VXF charges 0.05%. VTBNX is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VTBNX or VXF?
Over the past year VTBNX returned -1.78% vs +26.16% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.54% vs +9.14% for VXF. Past performance does not guarantee future results.
Which is riskier, VTBNX or VXF?
VXF has been the more volatile fund at 18.8% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs VXF -59.4%.
Should I hold both VTBNX and VXF?
VTBNX and VXF 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 VXF?
VTBNX and VXF share 4 common holdings with a 0.0% weight overlap. Combined, they hold 16018 unique securities.
Which pays a higher dividend, VTBNX or VXF?
VTBNX yields 3.79% while VXF yields 1.03%, so VTBNX currently pays the higher dividend yield.
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