ETY vs VTI
Eaton Vance Tax-Managed Diversified Equity Income 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 | ETY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.06% | 0.03% | |
| AUM | $1.8B | $666.9B | |
| Dividend Yield | 7.64% | 1.07% | |
| Holdings | 61 | 3,543 | |
| YTD Return | -0.95% | +12.65% | |
| 1Y Return | -0.22% | +21.39% | |
| 3Y Return (annualized) | +15.04% | +21.54% | |
| 5Y Return (annualized) | +8.49% | +12.11% | |
| Volatility (annualized) | 17.2% | 15.3% | |
| Max Drawdown | -64.6% | -56.6% | |
| Fund Family | Eaton Vance | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 27, 2006 | May 24, 2001 |
ETY vs VTI Performance
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) is a ETF from Eaton Vance and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ETY returned -0.22% while VTI returned +21.39%. Year to date, ETY is down 0.95% versus a gain of 12.65% for VTI.
Over three years, ETY compounded at +15.04% per year against +21.54% for VTI; over five years the annualized figures are +8.49% and +12.11% respectively. Across the full 20-year window we track, VTI has the edge at +8.07% annualized vs +0.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETY has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -64.6% for ETY 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ETY charges 1.06% per year while VTI charges 0.03%. On a $10,000 position that is $106 vs $3 annually, a gap of $103 per year that compounds over a long holding period. On income, ETY currently yields 7.64% against 1.07% for VTI.
Holdings Overlap
ETY and VTI share 45 holdings out of 2791 unique holdings combined, representing a 35.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETY or VTI?
ETY has an expense ratio of 1.06% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, ETY or VTI?
Over the past year ETY returned -0.22% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), ETY annualized +0.59% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, ETY or VTI?
ETY has been the more volatile fund at 17.2% annualized versus 15.3% for VTI. Worst drawdown: ETY -64.6% vs VTI -56.6%.
Should I hold both ETY and VTI?
ETY and VTI have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETY and VTI?
ETY and VTI share 45 common holdings with a 35.5% weight overlap. Combined, they hold 2791 unique securities.
Which pays a higher dividend, ETY or VTI?
ETY yields 7.64% while VTI yields 1.07%, so ETY currently pays the higher dividend yield.
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