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17 important things you should know about Vanguard VTBIX mutual fund

Updated: January 29, 2021
100
Bull Case
  • High net assets
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 10-year return above the benchmark
  • Low expense ratio
  • No sales load or distribution fees
Bear Case
  • No Bear case arguments for now!

Before we start: if you’re looking for VTBIX “stock” price, you can quickly find it out by visiting Finny and typing "VTBIX quote". If you’re looking for a quick scoop on VTBIX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "VTBIX". You’ll get all this info in one place.

Are you looking to buy or sell VTBIX? Or perhaps you’re looking for VTBIX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this VTBIX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: VTBIX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: VTBIX buy or sell; the pros and cons of investing in VTBIX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to VTBIX.

And here is the list of questions we’ll answer:

  1. Describe Vanguard Bond Index Funds: Vanguard Total Bond Market II Index Fund; Investor Shares (VTBIX).
  2. What are VTBIX holdings?
  3. What is VTBIX performance? What are VTBIX historical returns?
  4. How many up and down years did VTBIX have historically?
  5. What is VTBIX dividend yield?
  6. What is VTBIX minimum initial investment amount?
  7. What is VTBIX expense ratio?
  8. Does VTBIX have any sales loads or 12b-1 distribution expenses?
  9. What is VTBIX tax efficiency (tax-cost ratio)?
  10. What is VTBIX beta? How would you assess VTBIX risk?
  11. What is VTBIX Sharpe ratio?
  12. What is VTBIX Finny Score? VTBIX buy or sell?
  13. What are the pros of investing in VTBIX? What are VTBIX buy reasons?
  14. What are the cons of investing in VTBIX? What are VTBIX sell reasons?
  15. Compare and contrast: VTBIX vs VBTLX.
  16. Compare and contrast: VTBIX vs BND.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe Vanguard Bond Index Funds: Vanguard Total Bond Market II Index Fund; Investor Shares (VTBIX).

The Fund seeks to track the performance of the Barclays Capital U.S. Aggregate Bond Index, and will maintain a dollar-weighted average maturity consistent with that of the index. The Index measures investment-grade, taxable fixed income securities in the U.S.

2. What are VTBIX top holdings?

VTBIX has 0 stock holdings and 14,879 bond holdings.

The top 3 holdings represent 2.13% of total assets. Here are the top holdings:

Name Symbol % Assets
Federal National Mortgage Association 2.5% N/A 0.81%
Federal National Mortgage Association N/A 0.78%
United States Treasury Notes N/A 0.54%

3. What is VTBIX performance? What are VTBIX historical returns?

VTBIX has generated the following returns:

  • 1-month return is -0.40%;
  • 3-month return is 0.55%;
  • 1-year return is 0.55%;
  • 3-year return is 5.27%;
  • 5-year return is 4.00%;
  • 10-year return is 3.61%.

4. How many up and down years did VTBIX have historically?

In the last 10 years, VTBIX had 7 up years and 2 down years.

VTBIX up and down years

5. What is VTBIX dividend yield?

VTBIX yield is 2.17%.

6. What is VTBIX minimum initial investment amount?

VTBIX minimum initial investment amount is N/A.

7. What is VTBIX expense ratio?

VTBIX expense ratio is 0.09%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

VTBIX expenses

8. Does VTBIX have any sales loads or 12b-1 distribution expenses?

VTBIX 12b-1 distribution fee is 0. VTBIX front-end sales load is 0. VTBIX back-end sales load is 0.

9. What is VTBIX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.14%;
  • 3-year ax cost ratio is 1.12%.
VTBIX tax costs

10. What is VTBIX beta? How would you assess VTBIX risk?

  • 3-year beta is 1.04;
  • 5-year beta is 1.04;
  • 10-year beta is 1.04.
VTBIX Beta

11. What is VTBIX Sharpe ratio?

  • 3-year Sharpe ratio is 0.92;
  • 5-year Sharpe ratio is 0.83;
  • 10-year Sharpe ratio is 0.89.
VTBIX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 100. Our quantitative analysis shows 6 reasons to buy and 0 reasons to sell it, resulting in the Finny Score of 100.

13. What are the pros of investing in VTBIX? What are VTBIX buy reasons?

The following are VTBIX strengths from our perspective:

  • VTBIX net assets are $129.03 billion. This fund is a popular choice with retail and institutional investors.
  • VTBIX 3-year return is 5.27%, which is in line with the 3-year return of the benchmark index (Bloomberg Barclays US Aggregate Float Adjusted TR USD), 5.5%.
  • VTBIX 5-year return is 4%, which is in line with the 5-year return of the benchmark index (Bloomberg Barclays US Aggregate Float Adjusted TR USD), 4.22%.
  • VTBIX 10-year return is 3.61%, which is in line with the 10-year return of the benchmark index (Bloomberg Barclays US Aggregate Float Adjusted TR USD), 3.8%.
  • VTBIX expense ratio is 0.09%, which is considered low. Nice job picking a low-cost fund.
  • Good news: this fund does not have 12b1, front-end or back-end sales fees.

14. What are the cons of investing in VTBIX? What are VTBIX negatives?

There are no visible red flags.

Alternatives

15. Compare and contrast: VTBIX vs VBTLX.

Both VTBIX and VBTLX are mutual funds. VTBIX has a lower 5-year return than VBTLX (4% vs 4.13%). VTBIX has a higher expense ratio than VBTLX (0.09% vs 0.05%). Below is the comparison between VTBIX and VBTLX.

VTBIX VBTLX
Segment Taxable Fixed Income: Intermediate-Term Bond Taxable Fixed Income: Intermediate-Term Bond
Net Assets $129.03B $120.91B
Expense Ratio 0.09% 0.05%
Management Style passive (index-based) passive (index-based)
Underlying Index N/A N/A
YTD Return -0.59% -0.58%
1-Year Return 0.55% 0.56%
3-Year Return 5.27% 5.43%
5-Year Return 4% 4.13%
10-Year Return 3.61% 3.73%
Dividend Yield 2.17% 2.23%

VBTLX profile: The Fund seeks to track the performance of a broad, market-weighted bond index.

For further information, check out VTBIX vs VBTLX comparison details.

16. Compare and contrast: VTBIX vs BND.

VTBIX is a mutual fund, whereas BND is an ETF. VTBIX has a lower 5-year return than BND (4% vs 4.12%). VTBIX has a higher expense ratio than BND (0.09% vs 0.04%). Below is the comparison between VTBIX and BND.

VTBIX BND
Segment Taxable Fixed Income: Intermediate-Term Bond Fixed Income: U.S. - Broad Market Investment Grade
Net Assets $129.03B $68.25B
Expense Ratio 0.09% 0.04%
Management Style passive (index-based) passive (index-based)
Underlying Index N/A Bloomberg Barclays U.S. Aggregate Float Adjusted Index
YTD Return -0.59% -0.92%
1-Year Return 0.55% 5.75%
3-Year Return 5.27% 5.49%
5-Year Return 4% 4.12%
10-Year Return 3.61% 3.71%
Dividend Yield 2.17% 2.22%

BND profile: The Fund seeks to track the performance of a broad, market-weighted bond index.

For further information, check out VTBIX vs BND comparison details.

In the VTBIX review, we covered VTBIX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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