VTBNX vs VWIUX
Vanguard Total Bond Market II Index Fund Institutional Shares vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Which is better, VTBNX or VWIUX?
Long Term High Quality against Municipal Bond.
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.91.
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 | VTBNX | VWIUX |
|---|---|---|
| Expense Ratio | 0.02%Best | 0.09% |
| AUM | $212.6B | $86.6B |
| Dividend Yield | 4.30% | 3.58% |
| Holdings | 15,871 | 16,510 |
| YTD Price Return | -5.20% | -5.07% |
| 1Y Price Return | -5.88% | -4.66% |
| 3Y Price Return (annualized) | +0.48% | +0.26% |
| 5Y Price Return (annualized) | -3.84% | -2.28% |
| Volatility (annualized) | 6.4% | 5.6%Best |
| Max Drawdown | -20.8% | -15.4%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Tax Preferred |
| Style | Long Term High Quality | Municipal Bond |
| Inception | Feb 17, 2009 | Feb 12, 2001 |
Not shown on this pair: $10,000 over 5 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. VTBNX currently yields 4.30% and VWIUX 3.58%.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
VTBNX vs VWIUX Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VTBNX's price moved -5.88% and VWIUX's -4.66%, before the income each one paid out.
Over three years, VTBNX compounded at +0.48% per year against +0.26% for VWIUX; over five years the annualized figures are -3.84% and -2.28% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.4% compared with 5.6% for VWIUX. 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 -20.8% for VTBNX and -15.4% for VWIUX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTBNX charges 0.02% per year while VWIUX charges 0.09%. On a $10,000 position that is $2 vs $9 annually, a gap of $7 per year that compounds over a long holding period. On income, VTBNX currently yields 4.30% against 3.58% for VWIUX.
Holdings Overlap
We hold position weights for 9,578 holdings in VTBNX and 1,698 in VWIUX, totalling 57.5% and 17.8% 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 62 days apart, VTBNX as of Aug 31, 2026 and VWIUX 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 9,578 positions we hold weights for in VTBNX and 1,698 in VWIUX, against full books of 15,871 and 16,510.
Top Shared Holdings
| Stock | Weight in VTBNX | Weight in VWIUX | Difference |
|---|---|---|---|
| T 4 07/31/29United States Treasury Note/Bond 4 07/31/2029 | 0.21% | 0.00% | 0.21% |
| G2 MA4837Ginnie Mae Ii Pool 3.5 11/20/2047 | 0.01% | 0.00% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of VTBNX and VWIUX 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, VTBNX or VWIUX?
VTBNX has an expense ratio of 0.02% while VWIUX charges 0.09%. VTBNX is the cheaper option, by $7 a year on a $10,000 investment.
Which is riskier, VTBNX or VWIUX?
VTBNX has been the more volatile fund at 6.4% annualized versus 5.6% for VWIUX. Worst drawdown: VTBNX -20.8% vs VWIUX -15.4%.
Should I hold both VTBNX and VWIUX?
VTBNX and VWIUX have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VTBNX or VWIUX?
VTBNX yields 4.30% while VWIUX yields 3.58%, so VTBNX currently pays the higher dividend yield.
Is VWIUX better than VTBNX?
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.