HFRO vs VTI
Highland Opportunities and Income Fund vs Vanguard Morningstar Total Stock Market ETF
Which is better, HFRO or VTI?
Bank Loan against Large Cap Blend.
VTI has a lower expense ratio. HFRO led over 1Y, VTI over 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HFRO | VTI |
|---|---|---|
| Expense Ratio | 1.18% | 0.03%Best |
| AUM | $644M | $666.9B |
| Dividend Yield | 3.92% | 1.07% |
| Holdings | 63 | 3,543 |
| YTD Return | +29.29%Best | +13.59% |
| 1Y Return | +29.06%Best | +20.00% |
| 3Y Return (annualized) | +4.68% | +20.95%Best |
| 5Y Return (annualized) | +1.00% | +11.81%Best |
| Volatility (annualized) | 24.9% | 16.7%Best |
| Max Drawdown | -60.5% | -35.0%Best |
| $10,000 over 5 years | $10,510 | $17,474Best |
| Fund Family | NexPoint | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Bank Loan | Large Cap Blend |
| Inception | Jan 13, 2000 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 6, 2017 to Sep 4, 2026 (8.8 years).
HFRO vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.8 years both funds cover.
HFRO vs VTI Performance
Highland Opportunities and Income Fund (HFRO) is an ETF from NexPoint and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year HFRO returned +29.06% while VTI returned +20.00%. Year to date, HFRO is up 29.29% versus a gain of 13.59% for VTI.
Over three years, HFRO compounded at +4.68% per year against +20.95% for VTI; over five years the annualized figures are +1.00% and +11.81% respectively. Across the full 9-year window we track, VTI has the edge at +13.59% annualized vs -2.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HFRO has been the more volatile fund, with annualized monthly volatility of 24.9% compared with 16.7% 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 -60.5% for HFRO and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HFRO charges 1.18% per year while VTI charges 0.03%. On a $10,000 position that is $118 vs $3 annually, a gap of $115 per year that compounds over a long holding period. On income, HFRO currently yields 3.92% against 1.07% for VTI.
Holdings Overlap
We hold position weights for 13 holdings in HFRO and 2,787 in VTI, totalling 18.8% and 92.3% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 3 positions appear in both.
The two holdings books were reported 91 days apart, HFRO as of Mar 31, 2026 and VTI as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
3 positions in common, counted across the 13 positions we hold weights for in HFRO and 2,787 in VTI, against full books of 63 and 3,543.
You are not choosing between two funds in isolation.
Whichever of HFRO and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HFRO or VTI?
HFRO has an expense ratio of 1.18% while VTI charges 0.03%. VTI is the cheaper option, by $115 a year on a $10,000 investment.
Which performed better, HFRO or VTI?
Over the past year HFRO returned +29.06% vs +20.00% for VTI, so HFRO leads on 1-year performance. Over the longest common window we track (9 years), HFRO annualized -2.98% vs +13.59% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HFRO or VTI?
HFRO has been the more volatile fund at 24.9% annualized versus 16.7% for VTI. Worst drawdown: HFRO -60.5% vs VTI -35.0%.
Should I hold both HFRO and VTI?
HFRO and VTI have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HFRO or VTI?
HFRO yields 3.92% while VTI yields 1.07%, so HFRO currently pays the higher dividend yield.
Is VTI better than HFRO?
VTI has a lower expense ratio. HFRO led over 1Y, VTI over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.