FTSL 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

MetricFTSLVTIWinner
Expense Ratio0.70%0.03%
AUM$2.3B$666.9B
Dividend Yield6.39%1.07%
Holdings3333,543
YTD Return+1.61%+14.96%
1Y Return+3.45%+22.39%
3Y Return (annualized)+6.58%+21.51%
5Y Return (annualized)+5.08%+12.36%
Volatility (annualized)4.9%15.4%
Max Drawdown-26.4%-56.6%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMay 1, 2013May 24, 2001

FTSL vs VTI Performance

First Trust Senior Loan Fund ETF (FTSL) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FTSL returned +3.45% while VTI returned +22.39%. Year to date, FTSL is up 1.61% versus a gain of 14.96% for VTI.

Over three years, FTSL compounded at +6.58% per year against +21.51% for VTI; over five years the annualized figures are +5.08% and +12.36% respectively. Across the full 13-year window we track, VTI has the edge at +8.16% annualized vs +1.66%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 4.9% for FTSL. 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 -26.4% for FTSL 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FTSL charges 0.70% per year while VTI charges 0.03%. On a $10,000 position that is $70 vs $3 annually, a gap of $67 per year that compounds over a long holding period. On income, FTSL currently yields 6.39% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

FTSL and VTI share 0 holdings out of 2841 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, FTSL or VTI?

FTSL has an expense ratio of 0.70% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, FTSL or VTI?

Over the past year FTSL returned +3.45% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (13 years), FTSL annualized +1.66% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, FTSL or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 4.9% for FTSL. Worst drawdown: FTSL -26.4% vs VTI -56.6%.

Should I hold both FTSL and VTI?

FTSL and VTI have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTSL and VTI?

FTSL and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2841 unique securities.

Which pays a higher dividend, FTSL or VTI?

FTSL yields 6.39% while VTI yields 1.07%, so FTSL currently pays the higher dividend yield.

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