DIVY vs VTI
Sound Equity Dividend Income ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. DIVY delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | DIVY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.03% | |
| AUM | $29M | $663.5B | |
| Dividend Yield | 3.11% | 1.07% | |
| Holdings | 37 | 3,543 | |
| YTD Return | +18.42% | +14.22% | |
| 1Y Return | +26.21% | +22.19% | |
| 3Y Return (annualized) | +10.04% | +21.27% | |
| 5Y Return (annualized) | +8.09% | +12.23% | |
| Volatility (annualized) | 15.0% | 15.3% | |
| Max Drawdown | -18.3% | -56.6% | |
| Fund Family | Sound Income Strategies | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2020 | May 24, 2001 |
DIVY vs VTI Performance
Sound Equity Dividend Income ETF (DIVY) is a ETF from Sound Income Strategies and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year DIVY returned +26.21% while VTI returned +22.19%. Year to date, DIVY is up 18.42% versus a gain of 14.22% for VTI.
Over three years, DIVY compounded at +10.04% per year against +21.27% for VTI; over five years the annualized figures are +8.09% and +12.23% respectively. Across the full 6-year window we track, DIVY has the edge at +12.22% 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 15.0% for DIVY. 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 -18.3% for DIVY 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DIVY charges 0.45% per year while VTI charges 0.03%. On a $10,000 position that is $45 vs $3 annually, a gap of $42 per year that compounds over a long holding period. On income, DIVY currently yields 3.11% against 1.07% for VTI.
Holdings Overlap
DIVY and VTI share 25 holdings out of 2794 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIVY or VTI?
DIVY has an expense ratio of 0.45% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, DIVY or VTI?
Over the past year DIVY returned +26.21% vs +22.19% for VTI, so DIVY leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +12.22% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, DIVY or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 15.0% for DIVY. Worst drawdown: DIVY -18.3% vs VTI -56.6%.
Should I hold both DIVY and VTI?
DIVY and VTI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DIVY and VTI?
DIVY and VTI share 25 common holdings with a 3.1% weight overlap. Combined, they hold 2794 unique securities.
Which pays a higher dividend, DIVY or VTI?
DIVY yields 3.11% while VTI yields 1.07%, so DIVY currently pays the higher dividend yield.
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