VTILX vs VTIP
Vanguard Total International Bond II Index Fund Class Institutional vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VTIP delivered stronger 1-year returns. VTILX offers more diversification with 1459 holdings.
Side-by-Side Comparison
| Metric | VTILX | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $142.6B | $19.3B | |
| Dividend Yield | 4.12% | 3.60% | |
| Holdings | 7,391 | 27 | |
| YTD Return | -0.81% | +1.89% | |
| 1Y Return | -3.01% | +2.97% | |
| 3Y Return (annualized) | -0.47% | +5.46% | |
| 5Y Return (annualized) | - | +3.38% | |
| Volatility (annualized) | 6.0% | 2.4% | |
| Max Drawdown | -15.3% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Feb 17, 2021 | Oct 12, 2012 |
VTILX vs VTIP Performance
Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VTILX returned -3.01% while VTIP returned +2.97%. Year to date, VTILX is down 0.81% versus a gain of 1.89% for VTIP.
Over three years, VTILX compounded at -0.47% per year against +5.46% for VTIP. Across the full 5-year window we track, VTIP has the edge at +1.58% annualized vs -2.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTILX has been the more volatile fund, with annualized monthly volatility of 6.0% compared with 2.4% for VTIP. 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 -15.3% for VTILX and -7.1% for VTIP. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTILX charges 0.07% per year while VTIP charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, VTILX currently yields 4.12% against 3.60% for VTIP.
Holdings Overlap
VTILX and VTIP share 0 holdings out of 1482 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, VTILX or VTIP?
VTILX has an expense ratio of 0.07% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VTILX or VTIP?
Over the past year VTILX returned -3.01% vs +2.97% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (5 years), VTILX annualized -2.80% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VTILX or VTIP?
VTILX has been the more volatile fund at 6.0% annualized versus 2.4% for VTIP. Worst drawdown: VTILX -15.3% vs VTIP -7.1%.
Should I hold both VTILX and VTIP?
VTILX and VTIP have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTILX and VTIP?
VTILX and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1482 unique securities.
Which pays a higher dividend, VTILX or VTIP?
VTILX yields 4.12% while VTIP yields 3.60%, so VTILX currently pays the higher dividend yield.
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