VIITX vs. MSTBX

Last updated Jun 4, 2026

VIITX (Vanguard Institutional Intermediate-Term Bond Fund) and MSTBX (Morningstar Defensive Bond Fund) are both Short-Term Bond funds. Over the past 5 years, VIITX returned 1.50%/yr vs 2.36%/yr for MSTBX. Their correlation of 0.80 suggests significant overlap in exposure. VIITX charges 0.02%/yr vs 0.52%/yr for MSTBX.

Performance

VIITX vs. MSTBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Institutional Intermediate-Term Bond Fund (VIITX) and Morningstar Defensive Bond Fund (MSTBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIITX achieves a 0.56% return, which is significantly higher than MSTBX's -0.11% return.

VIITX

• 1D: 0.05%
• 1M: 0.29%
• YTD: 0.56%
• 6M: 0.76%
• 1Y: 5.12%
• 3Y*: 4.93%
• 5Y*: 1.50%
• 10Y*: 2.13%

MSTBX

• 1D: 0.10%
• 1M: -0.07%
• YTD: -0.11%
• 6M: 0.20%
• 1Y: 2.68%
• 3Y*: 4.80%
• 5Y*: 2.36%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VIITX vs. MSTBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VIITX Vanguard Institutional Intermediate-Term Bond Fund	0.56%	7.23%	3.67%	5.31%	-7.99%	-1.02%	6.17%	6.44%	1.99%
MSTBX Morningstar Defensive Bond Fund	-0.11%	5.19%	4.52%	7.16%	-4.73%	0.84%	4.75%	3.53%	0.39%

Correlation

The correlation between VIITX and MSTBX is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Nov 6, 2018	0.80

The correlation between VIITX and MSTBX shifts across timeframes, from 0.67 (1 year) to 0.85 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VIITX vs. MSTBX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VIITX

VIITX Risk / Return Rank: 50
VIITX Sharpe Ratio Rank: 50
VIITX Sortino Ratio Rank: 55
VIITX Omega Ratio Rank: 51
VIITX Calmar Ratio Rank: 51
VIITX Martin Ratio Rank: 41

MSTBX

MSTBX Risk / Return Rank: 34
MSTBX Sharpe Ratio Rank: 30
MSTBX Sortino Ratio Rank: 34
MSTBX Omega Ratio Rank: 34
MSTBX Calmar Ratio Rank: 40
MSTBX Martin Ratio Rank: 30

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VIITX vs. MSTBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Institutional Intermediate-Term Bond Fund (VIITX) and Morningstar Defensive Bond Fund (MSTBX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	VIITX	MSTBX	Difference
Sharpe ratio: Return per unit of total volatility	2.07	1.58	+0.49
Sortino ratio: Return per unit of downside risk	3.11	2.43	+0.68
Omega ratio: Gain probability vs. loss probability	1.39	1.31	+0.08
Calmar ratio: Return relative to maximum drawdown	2.72	2.39	+0.32
Martin ratio: Return relative to average drawdown	8.89	7.03	+1.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIITX vs. MSTBX - Sharpe Ratio Comparison

The current VIITX Sharpe Ratio is 2.07, which is higher than the MSTBX Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of VIITX and MSTBX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VIITX	MSTBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.07	1.58	+0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	1.04	-0.65
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	1.37	-0.62

Drawdowns

VIITX vs. MSTBX - Drawdown Comparison

The maximum VIITX drawdown since its inception was -11.86%, which is greater than MSTBX's maximum drawdown of -6.31%. Use the drawdown chart below to compare losses from any high point for VIITX and MSTBX.

Drawdown Indicators

	VIITX	MSTBX	Difference
Max Drawdown Largest peak-to-trough decline	-11.86%	-6.31%	-5.55%
Max Drawdown (1Y) Largest decline over 1 year	-1.89%	-1.41%	-0.48%
Max Drawdown (3Y) Largest decline over 3 years	-3.32%	-1.42%	-1.90%
Max Drawdown (5Y) Largest decline over 5 years	-11.86%	-6.31%	-5.55%
Max Drawdown (10Y) Largest decline over 10 years	-11.86%	—	—
Current Drawdown Current decline from peak	-0.87%	-0.92%	+0.05%
Average Drawdown Average peak-to-trough decline	-2.13%	-1.02%	-1.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.58%	0.49%	+0.09%

Volatility

VIITX vs. MSTBX - Volatility Comparison

Vanguard Institutional Intermediate-Term Bond Fund (VIITX) has a higher volatility of 0.87% compared to Morningstar Defensive Bond Fund (MSTBX) at 0.68%. This indicates that VIITX's price experiences larger fluctuations and is considered to be riskier than MSTBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIITX	MSTBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.87%	0.68%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	1.84%	1.47%	+0.37%
Volatility (1Y) Calculated over the trailing 1-year period	2.49%	2.15%	+0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.84%	2.38%	+1.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.06%	2.09%	+0.97%

VIITX vs. MSTBX - Expense Ratio Comparison

VIITX has a 0.02% expense ratio, which is lower than MSTBX's 0.52% expense ratio.

Dividends

VIITX vs. MSTBX - Dividend Comparison

VIITX's dividend yield for the trailing twelve months is around 4.57%, more than MSTBX's 2.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSTBX Morningstar Defensive Bond Fund	2.45%	2.79%	4.23%	3.80%	2.64%	2.64%	3.17%	2.69%	0.29%	0.00%	0.00%	0.00%
VIITX Vanguard Institutional Intermediate-Term Bond Fund	4.57%	4.51%	4.71%	3.61%	2.14%	2.20%	2.87%	2.69%	2.62%	2.04%	2.95%	0.57%

Frequently Asked Questions

Can I hold both VIITX and MSTBX in my portfolio?

VIITX and MSTBX have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIITX or MSTBX?

VIITX has higher volatility (0.87%) compared to MSTBX (0.68%). In terms of maximum drawdown, VIITX dropped -11.86% vs MSTBX's -6.31%.

Which has better risk-adjusted returns?

VIITX currently has the higher Sharpe Ratio (2.07 vs 1.58), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.