CUT vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricCUTVTIWinner
Expense Ratio0.76%0.03%
AUM$33M$666.9B
Dividend Yield2.39%1.07%
Holdings653,543
YTD Return+3.34%+14.82%
1Y Return+1.58%+22.43%
3Y Return (annualized)+2.27%+21.93%
5Y Return (annualized)-2.95%+12.34%
Volatility (annualized)22.9%15.4%
Max Drawdown-70.0%-56.6%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 9, 2007May 24, 2001

CUT vs VTI Performance

Invesco MSCI Global Timber ETF (CUT) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year CUT returned +1.58% while VTI returned +22.43%. Year to date, CUT is up 3.34% versus a gain of 14.82% for VTI.

Over three years, CUT compounded at +2.27% per year against +21.93% for VTI; over five years the annualized figures are -2.95% and +12.34% respectively. Across the full 19-year window we track, VTI has the edge at +8.16% annualized vs +3.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

CUT has been the more volatile fund, with annualized monthly volatility of 22.9% compared with 15.4% 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 -70.0% for CUT 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

CUT charges 0.76% per year while VTI charges 0.03%. On a $10,000 position that is $76 vs $3 annually, a gap of $73 per year that compounds over a long holding period. On income, CUT currently yields 2.39% against 1.07% for VTI.

Holdings Overlap

0.1%overlap

CUT and VTI share 6 holdings out of 2833 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in CUTWeight in VTIDifference
IP6.10%0.03%6.07%
SWR:IE6.08%0.03%6.05%
PKG5.52%0.03%5.49%
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Frequently Asked Questions

Which is cheaper, CUT or VTI?

CUT has an expense ratio of 0.76% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $73 per year of difference.

Which performed better, CUT or VTI?

Over the past year CUT returned +1.58% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), CUT annualized +3.07% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, CUT or VTI?

CUT has been the more volatile fund at 22.9% annualized versus 15.4% for VTI. Worst drawdown: CUT -70.0% vs VTI -56.6%.

Should I hold both CUT and VTI?

CUT and VTI have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CUT and VTI?

CUT and VTI share 6 common holdings with a 0.1% weight overlap. Combined, they hold 2833 unique securities.

Which pays a higher dividend, CUT or VTI?

CUT yields 2.39% while VTI yields 1.07%, so CUT currently pays the higher dividend yield.

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