GDO vs VTI
Western Asset Global Corporate Defined Opportunity Fund Inc. 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 | GDO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.03% | |
| AUM | $85M | $666.9B | |
| Dividend Yield | 13.14% | 1.07% | |
| Holdings | 326 | 3,543 | |
| YTD Return | -5.98% | +13.14% | |
| 1Y Return | -2.86% | +22.35% | |
| 3Y Return (annualized) | +6.56% | +21.83% | |
| 5Y Return (annualized) | -0.90% | +12.01% | |
| Volatility (annualized) | 12.7% | 15.3% | |
| Max Drawdown | -41.8% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 24, 2009 | May 24, 2001 |
GDO vs VTI Performance
Western Asset Global Corporate Defined Opportunity Fund Inc. (GDO) is a ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year GDO returned -2.86% while VTI returned +22.35%. Year to date, GDO is down 5.98% versus a gain of 13.14% for VTI.
Over three years, GDO compounded at +6.56% per year against +21.83% for VTI; over five years the annualized figures are -0.90% and +12.01% respectively. Across the full 17-year window we track, VTI has the edge at +8.09% annualized vs -0.61%. 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 12.7% for GDO. 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 -41.8% for GDO 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GDO charges 1.20% per year while VTI charges 0.03%. On a $10,000 position that is $120 vs $3 annually, a gap of $117 per year that compounds over a long holding period. On income, GDO currently yields 13.14% against 1.07% for VTI.
Holdings Overlap
GDO and VTI share 1 holdings out of 2999 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in GDO | Weight in VTI | Difference |
|---|---|---|---|
| C | 0.10% | 0.32% | 0.22% |
Frequently Asked Questions
Which is cheaper, GDO or VTI?
GDO has an expense ratio of 1.20% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $117 per year of difference.
Which performed better, GDO or VTI?
Over the past year GDO returned -2.86% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), GDO annualized -0.61% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, GDO or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.7% for GDO. Worst drawdown: GDO -41.8% vs VTI -56.6%.
Should I hold both GDO and VTI?
GDO and VTI have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GDO and VTI?
GDO and VTI share 1 common holdings with a 0.1% weight overlap. Combined, they hold 2999 unique securities.
Which pays a higher dividend, GDO or VTI?
GDO yields 13.14% while VTI yields 1.07%, so GDO currently pays the higher dividend yield.
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