VTILX vs XLF
Vanguard Total International Bond II Index Fund Class Institutional vs State Street Financial Select Sector SPDR ETF
Quick Verdict
VTILX has a lower expense ratio. XLF delivered stronger 1-year returns. VTILX offers more diversification with 1459 holdings.
Side-by-Side Comparison
| Metric | VTILX | XLF | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.08% | |
| AUM | $142.6B | $56.2B | |
| Dividend Yield | 4.12% | 1.51% | |
| Holdings | 7,391 | 80 | |
| YTD Return | -1.04% | +6.98% | |
| 1Y Return | -2.87% | +12.14% | |
| 3Y Return (annualized) | -0.32% | +20.59% | |
| 5Y Return (annualized) | - | +10.49% | |
| Volatility (annualized) | 6.0% | 21.4% | |
| Max Drawdown | -15.3% | -83.8% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2021 | Dec 16, 1998 |
VTILX vs XLF Performance
Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year VTILX returned -2.87% while XLF returned +12.14%. Year to date, VTILX is down 1.04% versus a gain of 6.98% for XLF.
Over three years, VTILX compounded at -0.32% per year against +20.59% for XLF. Across the full 5-year window we track, XLF has the edge at +3.73% annualized vs -2.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -83.8% for XLF. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTILX charges 0.07% per year while XLF charges 0.08%. On a $10,000 position that is $7 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, VTILX currently yields 4.12% against 1.51% for XLF.
Holdings Overlap
VTILX and XLF share 4 holdings out of 1532 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 XLF?
VTILX has an expense ratio of 0.07% while XLF charges 0.08%. VTILX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTILX or XLF?
Over the past year VTILX returned -2.87% vs +12.14% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (5 years), VTILX annualized -2.84% vs +3.73% for XLF. Past performance does not guarantee future results.
Which is riskier, VTILX or XLF?
XLF has been the more volatile fund at 21.4% annualized versus 6.0% for VTILX. Worst drawdown: VTILX -15.3% vs XLF -83.8%.
Should I hold both VTILX and XLF?
VTILX and XLF have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTILX and XLF?
VTILX and XLF share 4 common holdings with a 0.0% weight overlap. Combined, they hold 1532 unique securities.
Which pays a higher dividend, VTILX or XLF?
VTILX yields 4.12% while XLF yields 1.51%, so VTILX currently pays the higher dividend yield.
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