GARP vs VTI
iShares MSCI USA Quality GARP ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. GARP delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | GARP | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $3.0B | $666.9B | |
| Dividend Yield | 0.27% | 1.07% | |
| Holdings | 135 | 3,543 | |
| YTD Return | +21.20% | +13.14% | |
| 1Y Return | +36.66% | +22.35% | |
| 3Y Return (annualized) | +32.68% | +21.83% | |
| 5Y Return (annualized) | +17.94% | +12.01% | |
| Volatility (annualized) | 20.5% | 15.3% | |
| Max Drawdown | -31.3% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2020 | May 24, 2001 |
GARP vs VTI Performance
iShares MSCI USA Quality GARP ETF (GARP) 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 GARP returned +36.66% while VTI returned +22.35%. Year to date, GARP is up 21.20% versus a gain of 13.14% for VTI.
Over three years, GARP compounded at +32.68% per year against +21.83% for VTI; over five years the annualized figures are +17.94% and +12.01% respectively. Across the full 7-year window we track, GARP has the edge at +20.49% annualized vs +8.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GARP has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -31.3% for GARP 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
GARP charges 0.15% per year while VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, GARP currently yields 0.27% against 1.07% for VTI.
Holdings Overlap
GARP and VTI share 124 holdings out of 2795 unique holdings combined, representing a 40.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GARP or VTI?
GARP has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, GARP or VTI?
Over the past year GARP returned +36.66% vs +22.35% for VTI, so GARP leads on 1-year performance. Over the longest common window we track (7 years), GARP annualized +20.49% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, GARP or VTI?
GARP has been the more volatile fund at 20.5% annualized versus 15.3% for VTI. Worst drawdown: GARP -31.3% vs VTI -56.6%.
Should I hold both GARP and VTI?
GARP and VTI have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between GARP and VTI?
GARP and VTI share 124 common holdings with a 40.3% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, GARP or VTI?
GARP yields 0.27% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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