FALN vs VTI
iShares Fallen Angels USD Bond ETF 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 | FALN | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.03% | |
| AUM | $1.6B | $666.9B | |
| Dividend Yield | 6.51% | 1.07% | |
| Holdings | 159 | 3,543 | |
| YTD Return | +2.62% | +13.14% | |
| 1Y Return | +6.43% | +22.35% | |
| 3Y Return (annualized) | +9.20% | +21.83% | |
| 5Y Return (annualized) | +3.57% | +12.01% | |
| Volatility (annualized) | 9.4% | 15.3% | |
| Max Drawdown | -30.0% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 14, 2016 | May 24, 2001 |
FALN vs VTI Performance
iShares Fallen Angels USD Bond ETF (FALN) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FALN returned +6.43% while VTI returned +22.35%. Year to date, FALN is up 2.62% versus a gain of 13.14% for VTI.
Over three years, FALN compounded at +9.20% per year against +21.83% for VTI; over five years the annualized figures are +3.57% and +12.01% respectively. Across the full 10-year window we track, VTI has the edge at +8.09% annualized vs +3.72%. 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 9.4% for FALN. 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 -30.0% for FALN 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
FALN charges 0.25% per year while VTI charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, FALN currently yields 6.51% against 1.07% for VTI.
Holdings Overlap
FALN and VTI share 0 holdings out of 2938 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FALN or VTI?
FALN has an expense ratio of 0.25% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, FALN or VTI?
Over the past year FALN returned +6.43% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (10 years), FALN annualized +3.72% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, FALN or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 9.4% for FALN. Worst drawdown: FALN -30.0% vs VTI -56.6%.
Should I hold both FALN and VTI?
FALN 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 FALN and VTI?
FALN and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2938 unique securities.
Which pays a higher dividend, FALN or VTI?
FALN yields 6.51% while VTI yields 1.07%, so FALN currently pays the higher dividend yield.
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