IAI vs VTI
iShares US Broker-Dealers & Securities Exchanges ETF 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 | IAI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.03% | |
| AUM | $1.4B | $666.9B | |
| Dividend Yield | 1.10% | 1.07% | |
| Holdings | 40 | 3,543 | |
| YTD Return | +7.73% | +13.14% | |
| 1Y Return | +14.41% | +22.35% | |
| 3Y Return (annualized) | +30.06% | +21.83% | |
| 5Y Return (annualized) | +14.46% | +12.01% | |
| Volatility (annualized) | 22.6% | 15.3% | |
| Max Drawdown | -75.8% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | May 24, 2001 |
IAI vs VTI Performance
iShares US Broker-Dealers & Securities Exchanges ETF (IAI) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IAI returned +14.41% while VTI returned +22.35%. Year to date, IAI is up 7.73% versus a gain of 13.14% for VTI.
Over three years, IAI compounded at +30.06% per year against +21.83% for VTI; over five years the annualized figures are +14.46% and +12.01% respectively. Across the full 20-year window we track, VTI has the edge at +8.09% annualized vs +7.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAI has been the more volatile fund, with annualized monthly volatility of 22.6% compared with 15.3% 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 -75.8% for IAI 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IAI charges 0.37% per year while VTI charges 0.03%. On a $10,000 position that is $37 vs $3 annually, a gap of $34 per year that compounds over a long holding period. On income, IAI currently yields 1.10% against 1.07% for VTI.
Holdings Overlap
IAI and VTI share 29 holdings out of 2794 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IAI or VTI?
IAI has an expense ratio of 0.37% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, IAI or VTI?
Over the past year IAI returned +14.41% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), IAI annualized +7.27% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IAI or VTI?
IAI has been the more volatile fund at 22.6% annualized versus 15.3% for VTI. Worst drawdown: IAI -75.8% vs VTI -56.6%.
Should I hold both IAI and VTI?
IAI and VTI have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAI and VTI?
IAI and VTI share 29 common holdings with a 1.9% weight overlap. Combined, they hold 2794 unique securities.
Which pays a higher dividend, IAI or VTI?
IAI yields 1.10% while VTI yields 1.07%, so IAI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.