VTBNX vs VXUS
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Total International Stock ETF
Quick Verdict
VTBNX has a lower expense ratio. VXUS delivered stronger 1-year returns. VTBNX offers more diversification with 8098 holdings.
Side-by-Side Comparison
| Metric | VTBNX | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.05% | |
| AUM | $206.7B | $156.5B | |
| Dividend Yield | 3.73% | 2.60% | |
| Holdings | 15,623 | 8,747 | |
| YTD Return | -2.60% | +14.19% | |
| 1Y Return | -1.88% | +27.38% | |
| 3Y Return (annualized) | +0.36% | +19.53% | |
| 5Y Return (annualized) | -3.49% | +9.03% | |
| Volatility (annualized) | 6.3% | 15.1% | |
| Max Drawdown | -21.5% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | Jan 26, 2011 |
VTBNX vs VXUS Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTBNX returned -1.88% while VXUS returned +27.38%. Year to date, VTBNX is down 2.60% versus a gain of 14.19% for VXUS.
Over three years, VTBNX compounded at +0.36% per year against +19.53% for VXUS; over five years the annualized figures are -3.49% and +9.03% respectively. Across the full 5-year window we track, VXUS has the edge at +4.83% annualized vs -3.49%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTBNX charges 0.02% per year while VXUS 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 3.73% against 2.60% for VXUS.
Holdings Overlap
VTBNX and VXUS share 1 holdings out of 15958 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 VXUS | Difference |
|---|---|---|---|
| LOGG3:BV | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
Which is cheaper, VTBNX or VXUS?
VTBNX has an expense ratio of 0.02% while VXUS 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 VXUS?
Over the past year VTBNX returned -1.88% vs +27.38% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.49% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, VTBNX or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs VXUS -39.9%.
Should I hold both VTBNX and VXUS?
VTBNX and VXUS have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTBNX and VXUS?
VTBNX and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 15958 unique securities.
Which pays a higher dividend, VTBNX or VXUS?
VTBNX yields 3.73% while VXUS yields 2.60%, so VTBNX currently pays the higher dividend yield.
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