HYFI vs VTI

HYFI vs VTI
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Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricHYFIVTIWinner
Expense Ratio0.40%0.03%
AUM$333M$666.9B
Dividend Yield6.67%1.07%
Holdings6663,543
YTD Return+2.31%+13.14%
1Y Return+5.92%+22.35%
3Y Return (annualized)+9.04%+21.83%
5Y Return (annualized)-+12.01%
Volatility (annualized)4.5%15.3%
Max Drawdown-6.3%-56.6%
Fund FamilyAllianceBernstein L.P.Vanguard (US)
CategoryFixed IncomeEquity
InceptionMay 15, 2023May 24, 2001

HYFI vs VTI Performance

AB High Yield ETF (HYFI) is a ETF from AllianceBernstein L.P. and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HYFI returned +5.92% while VTI returned +22.35%. Year to date, HYFI is up 2.31% versus a gain of 13.14% for VTI.

Over three years, HYFI compounded at +9.04% per year against +21.83% for VTI. Across the full 3-year window we track, HYFI has the edge at +8.64% annualized vs +8.09%. 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 HYFI. 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 -6.3% for HYFI 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYFI charges 0.40% per year while VTI charges 0.03%. On a $10,000 position that is $40 vs $3 annually, a gap of $37 per year that compounds over a long holding period. On income, HYFI currently yields 6.67% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

HYFI and VTI share 4 holdings out of 3232 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HYFIWeight in VTIDifference
C0.01%0.32%0.31%
RXT0.06%0.00%0.06%
HOV0.00%0.00%0.00%
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Frequently Asked Questions

Which is cheaper, HYFI or VTI?

HYFI has an expense ratio of 0.40% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $37 per year of difference.

Which performed better, HYFI or VTI?

Over the past year HYFI returned +5.92% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), HYFI annualized +8.64% vs +8.09% for VTI. Past performance does not guarantee future results.

Which is riskier, HYFI or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 4.5% for HYFI. Worst drawdown: HYFI -6.3% vs VTI -56.6%.

Should I hold both HYFI and VTI?

HYFI and VTI have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYFI and VTI?

HYFI and VTI share 4 common holdings with a 0.0% weight overlap. Combined, they hold 3232 unique securities.

Which pays a higher dividend, HYFI or VTI?

HYFI yields 6.67% while VTI yields 1.07%, so HYFI currently pays the higher dividend yield.

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