GNMA vs VTI
GNMA vs VTI
iShares GNMA Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | GNMA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $423M | $663.5B | |
| Dividend Yield | 4.22% | 1.07% | |
| Holdings | 347 | 3,543 | |
| YTD Return | +0.34% | +14.20% | |
| 1Y Return | +3.42% | +24.16% | |
| 3Y Return (annualized) | +4.27% | +21.12% | |
| 5Y Return (annualized) | +0.43% | +12.37% | |
| Volatility (annualized) | 4.5% | 15.3% | |
| Max Drawdown | -19.5% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | May 24, 2001 |
GNMA vs VTI Performance
iShares GNMA Bond ETF (GNMA) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year GNMA returned +3.42% while VTI returned +24.16%. Year to date, GNMA is up 0.34% versus a gain of 14.20% for VTI.
Over three years, GNMA compounded at +4.27% per year against +21.12% for VTI; over five years the annualized figures are +0.43% and +12.37% respectively. Across the full 15-year window we track, VTI has the edge at +8.14% annualized vs +0.18%. 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 4.5% for GNMA. 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 -19.5% for GNMA 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GNMA charges 0.10% per year while VTI charges 0.03%. On a $10,000 position that is $10 vs $3 annually, a gap of $7 per year that compounds over a long holding period. On income, GNMA currently yields 4.22% against 1.07% for VTI.
Holdings Overlap
GNMA and VTI share 0 holdings out of 3096 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, GNMA or VTI?
GNMA has an expense ratio of 0.10% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, GNMA or VTI?
Over the past year GNMA returned +3.42% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), GNMA annualized +0.18% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, GNMA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.5% for GNMA. Worst drawdown: GNMA -19.5% vs VTI -56.6%.
Should I hold both GNMA and VTI?
GNMA and VTI have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GNMA and VTI?
GNMA and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3096 unique securities.
Which pays a higher dividend, GNMA or VTI?
GNMA yields 4.22% while VTI yields 1.07%, so GNMA currently pays the higher dividend yield.
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