AREA vs VTI
Harbor AlphaEdge Next Generation REITs ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | AREA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $2M | $666.9B | |
| Dividend Yield | 0.66% | 1.07% | |
| Holdings | 86 | 3,543 | |
| YTD Return | +8.88% | +13.67% | |
| 1Y Return | +7.75% | +22.17% | |
| 3Y Return (annualized) | - | +21.93% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 13.0% | 15.3% | |
| Max Drawdown | -21.1% | -56.6% | |
| Fund Family | Harbor Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 3, 2024 | May 24, 2001 |
AREA vs VTI Performance
Harbor AlphaEdge Next Generation REITs ETF (AREA) is a ETF from Harbor Funds and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year AREA returned +7.75% while VTI returned +22.17%. Year to date, AREA is up 8.88% versus a gain of 13.67% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.0% for AREA. 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 -21.1% for AREA and -56.6% for VTI. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AREA charges 0.50% per year while VTI charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, AREA currently yields 0.66% against 1.07% for VTI.
Holdings Overlap
AREA and VTI share 27 holdings out of 2798 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AREA or VTI?
AREA has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, AREA or VTI?
Over the past year AREA returned +7.75% vs +22.17% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), AREA annualized +1.50% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, AREA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 13.0% for AREA. Worst drawdown: AREA -21.1% vs VTI -56.6%.
Should I hold both AREA and VTI?
AREA and VTI have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AREA and VTI?
AREA and VTI share 27 common holdings with a 1.0% weight overlap. Combined, they hold 2798 unique securities.
Which pays a higher dividend, AREA or VTI?
AREA yields 0.66% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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