VTILX vs VYM
Vanguard Total International Bond II Index Fund Class Institutional vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VTILX offers more diversification with 7,415 holdings.
Side-by-Side Comparison
| Metric | VTILX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $141.9B | $81.6B | |
| Dividend Yield | 4.19% | 2.24% | |
| Holdings | 7,415 | 613 | |
| YTD Return | -1.54% | +14.18% | |
| 1Y Return | -2.85% | +20.67% | |
| 3Y Return (annualized) | -0.64% | +18.47% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 6.0% | 14.5% | |
| Max Drawdown | -15.3% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2021 | Nov 10, 2006 |
VTILX vs VYM Performance
Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTILX returned -2.85% while VYM returned +20.67%. Year to date, VTILX is down 1.54% versus a gain of 14.18% for VYM.
Over three years, VTILX compounded at -0.64% per year against +18.47% for VYM. Across the full 5-year window we track, VYM has the edge at +6.97% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% 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 -58.8% for VYM. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTILX charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, VTILX currently yields 4.19% against 2.24% for VYM.
Holdings Overlap
VTILX and VYM share 8 holdings out of 2054 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 VYM?
VTILX has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VTILX or VYM?
Over the past year VTILX returned -2.85% vs +20.67% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VTILX annualized -2.91% vs +6.97% for VYM. Past performance does not guarantee future results.
Which is riskier, VTILX or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 6.0% for VTILX. Worst drawdown: VTILX -15.3% vs VYM -58.8%.
Should I hold both VTILX and VYM?
VTILX and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTILX and VYM?
VTILX and VYM share 8 common holdings with a 0.0% weight overlap. Combined, they hold 2054 unique securities.
Which pays a higher dividend, VTILX or VYM?
VTILX yields 4.19% while VYM yields 2.24%, so VTILX currently pays the higher dividend yield.
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