VTILX vs VWO
Vanguard Total International Bond II Index Fund Class Institutional vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. VWO delivered stronger 1-year returns. VTILX offers more diversification with 7,391 holdings.
Side-by-Side Comparison
| Metric | VTILX | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $141.9B | $122.0B | |
| Dividend Yield | 4.19% | 2.39% | |
| Holdings | 7,391 | 6,334 | |
| YTD Return | -1.23% | +9.56% | |
| 1Y Return | -3.17% | +20.45% | |
| 3Y Return (annualized) | -0.31% | +17.86% | |
| 5Y Return (annualized) | - | +6.63% | |
| Volatility (annualized) | 6.0% | 20.1% | |
| Max Drawdown | -15.3% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2021 | Mar 4, 2005 |
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 a ETF from Vanguard (US). Over the past year VTILX returned -3.17% while VWO returned +20.45%. Year to date, VTILX is down 1.23% versus a gain of 9.56% for VWO.
Over three years, VTILX compounded at -0.31% per year against +17.86% for VWO. Across the full 5-year window we track, VWO has the edge at +4.96% annualized vs -2.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
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.
Holdings Overlap
VTILX and VWO share 2 holdings out of 5441 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 VWO?
VTILX has an expense ratio of 0.07% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTILX or VWO?
Over the past year VTILX returned -3.17% vs +20.45% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (5 years), VTILX annualized -2.87% vs +4.96% for VWO. Past performance does not guarantee future results.
Which is riskier, VTILX or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 6.0% for VTILX. Worst drawdown: VTILX -15.3% vs VWO -68.3%.
Should I hold both VTILX and VWO?
VTILX and VWO have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTILX and VWO?
VTILX and VWO share 2 common holdings with a 0.0% weight overlap. Combined, they hold 5441 unique securities.
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.
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