VTILX vs VWO
Vanguard Total International Bond II Index Fund Class Institutional vs Vanguard FTSE Emerging Markets ETF
Which is better, VTILX or VWO?
VWO costs less.
VWO has a lower expense ratio.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VTILX | VWO |
|---|---|---|
| Expense Ratio | 0.07% | 0.06%Best |
| AUM | $141.9B | $122.0B |
| Dividend Yield | 4.19% | 2.39% |
| Holdings | 7,415 | 6,334 |
| YTD Price Return | -1.77% | +11.85% |
| 1Y Price Return | -3.44% | +19.58% |
| 3Y Price Return (annualized) | -0.58% | +14.70% |
| 5Y Price Return (annualized) | - | +2.88% |
| Volatility (annualized) | 6.0%Best | 15.1% |
| Max Drawdown | -15.3%Best | -32.2% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | Feb 17, 2021 | Mar 4, 2005 |
Not shown on this pair: $10,000 over 4.9 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VTILX currently yields 4.19% and VWO 2.39%.
Volatility and max drawdown, and the $10,000 over 4.9 years row, are measured over the window both funds cover: Oct 25, 2021 to Sep 4, 2026 (4.9 years).
VTILX vs VWO Performance
Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VTILX's price moved -3.44% and VWO's +19.58%, before the income each one paid out.
Over three years, VTILX compounded at -0.58% per year against +14.70% for VWO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -32.2% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VTILX charges 0.07% per year while VWO charges 0.06%. On a $10,000 position that is $7 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, VTILX currently yields 4.19% against 2.39% for VWO.
Structure and taxes
VTILX is a mutual fund and VWO is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 1,459 holdings in VTILX and 4,695 in VWO, totalling 7.1% and 88.0% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 2 positions appear in both.
The two holdings books were reported 242 days apart, VTILX as of Oct 31, 2025 and VWO as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
2 positions in common, counted across the 1,459 positions we hold weights for in VTILX and 4,695 in VWO, against full books of 7,415 and 6,334.
You are not choosing between two funds in isolation.
Whichever of VTILX and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTILX or VWO?
VTILX has an expense ratio of 0.07% while VWO charges 0.06%. VWO is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, VTILX or VWO?
VWO has been the more volatile fund at 15.1% annualized versus 6.0% for VTILX. Worst drawdown: VTILX -15.3% vs VWO -32.2%.
Should I hold both VTILX and VWO?
VTILX and VWO have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTILX or VWO?
VTILX yields 4.19% while VWO yields 2.39%, so VTILX currently pays the higher dividend yield.
Is it better to hold VTILX or VWO in a taxable account?
VWO is an ETF and VTILX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VWO better than VTILX?
VWO has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.