BTO vs VTI
John Hancock Financial Opportunities Fund 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 | BTO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.96% | 0.03% | |
| AUM | $709M | $666.9B | |
| Dividend Yield | 6.18% | 1.07% | |
| Holdings | 184 | 3,543 | |
| YTD Return | +17.11% | +13.14% | |
| 1Y Return | +19.55% | +22.35% | |
| 3Y Return (annualized) | +24.15% | +21.83% | |
| 5Y Return (annualized) | +5.83% | +12.01% | |
| Volatility (annualized) | 31.1% | 15.3% | |
| Max Drawdown | -95.5% | -56.6% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 18, 1994 | May 24, 2001 |
BTO vs VTI Performance
John Hancock Financial Opportunities Fund (BTO) is a ETF from John Hancock Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year BTO returned +19.55% while VTI returned +22.35%. Year to date, BTO is up 17.11% versus a gain of 13.14% for VTI.
Over three years, BTO compounded at +24.15% per year against +21.83% for VTI; over five years the annualized figures are +5.83% and +12.01% respectively. Across the full 23-year window we track, VTI has the edge at +8.09% annualized vs -4.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTO has been the more volatile fund, with annualized monthly volatility of 31.1% compared with 15.3% for VTI. 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 -95.5% for BTO 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTO charges 2.96% per year while VTI charges 0.03%. On a $10,000 position that is $296 vs $3 annually, a gap of $293 per year that compounds over a long holding period. On income, BTO currently yields 6.18% against 1.07% for VTI.
Holdings Overlap
BTO and VTI share 84 holdings out of 2837 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BTO or VTI?
BTO has an expense ratio of 2.96% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $293 per year of difference.
Which performed better, BTO or VTI?
Over the past year BTO returned +19.55% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), BTO annualized -4.15% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, BTO or VTI?
BTO has been the more volatile fund at 31.1% annualized versus 15.3% for VTI. Worst drawdown: BTO -95.5% vs VTI -56.6%.
Should I hold both BTO and VTI?
BTO and VTI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTO and VTI?
BTO and VTI share 84 common holdings with a 0.6% weight overlap. Combined, they hold 2837 unique securities.
Which pays a higher dividend, BTO or VTI?
BTO yields 6.18% while VTI yields 1.07%, so BTO currently pays the higher dividend yield.
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