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  • msf March 2019
  • Ted March 2019
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VBMFX vs. VBTIX?

What's the difference between VBMFX and VBTIX? They're both titled "Vanguard Total Bond Market Index".

Comments

  • @randynevin: VBTIX are the institutional shares , 5 Million minimum investment.
    Regards,
    Ted
  • msf
    edited March 2019
    They're two different share classes of the same fund. That means they both represent ownership of the same underlying portfolio (fund). It's just that they're sold to different types of investors and they have different annual expenses (expense ratios).

    VBMFX costs 0.15%/year (expense ratio, or ER), while VBTIX's expense ratio is 0.04%. Neither share class is open to retail investors.

    You could buy VBTLX shares, with a $3K minimum investment and a 0.05% expense ratio. You could also buy the same fund through a brokerage by purchasing BND (an ETF share class of the same fund) with an expense ratio scheduled to drop to 0.035% (according to Barron's).
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