HIO vs VTI
Western Asset High Income Opportunity Fund Inc. vs Vanguard Morningstar Total Stock Market ETF
Which is better, HIO or VTI?
High Yield Bond against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 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 | HIO | VTI |
|---|---|---|
| Expense Ratio | 0.94% | 0.03%Best |
| AUM | $365M | $666.9B |
| Dividend Yield | 11.09% | 1.07% |
| Holdings | 338 | 3,543 |
| YTD Return | +1.38% | +13.59%Best |
| 1Y Return | -1.48% | +20.00%Best |
| 3Y Return (annualized) | +8.37% | +20.95%Best |
| 5Y Return (annualized) | +1.58% | +11.81%Best |
| Volatility (annualized) | 12.9%Best | 15.3% |
| Max Drawdown | -66.6% | -56.6%Best |
| $10,000 over 5 years | $10,815 | $17,474Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Oct 22, 1993 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 31, 2001 to Sep 4, 2026 (25.3 years).
HIO 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
HIO vs VTI Performance
Western Asset High Income Opportunity Fund Inc. (HIO) is an ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year HIO returned -1.48% while VTI returned +20.00%. Year to date, HIO is up 1.38% versus a gain of 13.59% for VTI.
Over three years, HIO compounded at +8.37% per year against +20.95% for VTI; over five years the annualized figures are +1.58% and +11.81% respectively. Across the full 25-year window we track, VTI has the edge at +8.09% annualized vs -1.60%.
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 12.9% for HIO. 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 -66.6% for HIO and -56.6% 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 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HIO charges 0.94% per year while VTI charges 0.03%. On a $10,000 position that is $94 vs $3 annually, a gap of $91 per year that compounds over a long holding period. On income, HIO currently yields 11.09% against 1.07% for VTI.
Holdings Overlap
We hold position weights for 213 holdings in HIO and 2,787 in VTI, totalling 73.9% 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, 1 positions appear in both.
The two holdings books were reported 151 days apart, HIO as of Jan 30, 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.
1 positions in common, counted across the 213 positions we hold weights for in HIO and 2,787 in VTI, against full books of 338 and 3,543.
Top Shared Holdings
| Stock | Weight in HIO | Weight in VTI | Difference |
|---|---|---|---|
| WWWw International Inc | 0.39% | 0.00% | 0.39% |
You are not choosing between two funds in isolation.
Whichever of HIO 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, HIO or VTI?
HIO has an expense ratio of 0.94% while VTI charges 0.03%. VTI is the cheaper option, by $91 a year on a $10,000 investment.
Which performed better, HIO or VTI?
Over the past year HIO returned -1.48% vs +20.00% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), HIO annualized -1.60% vs +8.09% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HIO or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.9% for HIO. Worst drawdown: HIO -66.6% vs VTI -56.6%.
Should I hold both HIO and VTI?
HIO and VTI have a monthly-return correlation of 0.62, 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, HIO or VTI?
HIO yields 11.09% while VTI yields 1.07%, so HIO currently pays the higher dividend yield.
Is VTI better than HIO?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.