VTILX vs VUG

Quick Verdict

VUG has a lower expense ratio. VUG delivered stronger 1-year returns. VTILX offers more diversification with 1459 holdings.

Lower Fees: VUGHigher Returns: VUGMore Diversified: VTILX

Side-by-Side Comparison

MetricVTILXVUGWinner
Expense Ratio0.07%0.03%
AUM$142.6B$223.2B
Dividend Yield4.12%0.47%
Holdings7,391155
YTD Return-1.04%+9.91%
1Y Return-3.09%+15.67%
3Y Return (annualized)-0.32%+24.16%
5Y Return (annualized)-+12.94%
Volatility (annualized)6.0%16.5%
Max Drawdown-15.3%-51.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 17, 2021Jan 26, 2004

VTILX vs VUG Performance

Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VTILX returned -3.09% while VUG returned +15.67%. Year to date, VTILX is down 1.04% versus a gain of 9.91% for VUG.

Over three years, VTILX compounded at -0.32% per year against +24.16% for VUG. Across the full 5-year window we track, VUG has the edge at +11.27% annualized vs -2.84%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VUG has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 6.0% for VTILX. 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 -51.4% for VUG. 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

VTILX charges 0.07% per year while VUG 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 0.47% for VUG.

Holdings Overlap

0.0%overlap

VTILX and VUG share 3 holdings out of 1602 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VTILXWeight in VUGDifference
AAPL0.00%11.64%11.64%
MSFT0.00%7.60%7.60%
MCD0.01%0.54%0.53%

Frequently Asked Questions

Which is cheaper, VTILX or VUG?

VTILX has an expense ratio of 0.07% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, VTILX or VUG?

Over the past year VTILX returned -3.09% vs +15.67% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (5 years), VTILX annualized -2.84% vs +11.27% for VUG. Past performance does not guarantee future results.

Which is riskier, VTILX or VUG?

VUG has been the more volatile fund at 16.5% annualized versus 6.0% for VTILX. Worst drawdown: VTILX -15.3% vs VUG -51.4%.

Should I hold both VTILX and VUG?

VTILX and VUG 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 VTILX and VUG?

VTILX and VUG share 3 common holdings with a 0.0% weight overlap. Combined, they hold 1602 unique securities.

Which pays a higher dividend, VTILX or VUG?

VTILX yields 4.12% while VUG yields 0.47%, so VTILX currently pays the higher dividend yield.

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