BAUG vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricBAUGVTIWinner
Expense Ratio0.79%0.03%
AUM$195M$663.5B
Dividend Yield0.00%1.07%
Holdings63,543
YTD Return+10.67%+14.16%
1Y Return+16.90%+23.62%
3Y Return (annualized)+17.77%+21.43%
5Y Return (annualized)+11.75%+12.33%
Volatility (annualized)11.6%15.3%
Max Drawdown-24.2%-56.6%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionJul 31, 2019May 24, 2001

BAUG vs VTI Performance

Innovator U.S. Equity Buffer ETF - August (BAUG) is a ETF from Innovator ETFs Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year BAUG returned +16.90% while VTI returned +23.62%. Year to date, BAUG is up 10.67% versus a gain of 14.16% for VTI.

Over three years, BAUG compounded at +17.77% per year against +21.43% for VTI; over five years the annualized figures are +11.75% and +12.33% respectively. Across the full 7-year window we track, BAUG has the edge at +12.01% annualized vs +8.14%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.6% for BAUG. 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 -24.2% for BAUG 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BAUG charges 0.79% per year while VTI charges 0.03%. On a $10,000 position that is $79 vs $3 annually, a gap of $76 per year that compounds over a long holding period. On income, BAUG currently yields 0.00% against 1.07% for VTI.

Frequently Asked Questions

Which is cheaper, BAUG or VTI?

BAUG has an expense ratio of 0.79% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $76 per year of difference.

Which performed better, BAUG or VTI?

Over the past year BAUG returned +16.90% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (7 years), BAUG annualized +12.01% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, BAUG or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 11.6% for BAUG. Worst drawdown: BAUG -24.2% vs VTI -56.6%.

Should I hold both BAUG and VTI?

BAUG and VTI have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, BAUG or VTI?

BAUG yields 0.00% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.

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