IAT vs VTI
iShares US Regional Banks ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IAT delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IAT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.03% | |
| AUM | $686M | $666.9B | |
| Dividend Yield | 2.55% | 1.07% | |
| Holdings | 35 | 3,543 | |
| YTD Return | +12.65% | +12.65% | |
| 1Y Return | +23.73% | +21.39% | |
| 3Y Return (annualized) | +24.46% | +21.54% | |
| 5Y Return (annualized) | +4.88% | +12.11% | |
| Volatility (annualized) | 25.5% | 15.3% | |
| Max Drawdown | -78.8% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | May 24, 2001 |
IAT vs VTI Performance
iShares US Regional Banks ETF (IAT) 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 IAT returned +23.73% while VTI returned +21.39%. Year to date, IAT is up 12.65% versus a gain of 12.65% for VTI.
Over three years, IAT compounded at +24.46% per year against +21.54% for VTI; over five years the annualized figures are +4.88% and +12.11% respectively. Across the full 20-year window we track, VTI has the edge at +8.07% annualized vs +1.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAT has been the more volatile fund, with annualized monthly volatility of 25.5% 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 -78.8% for IAT 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAT 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, IAT currently yields 2.55% against 1.07% for VTI.
Holdings Overlap
IAT and VTI share 24 holdings out of 2795 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IAT or VTI?
IAT 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, IAT or VTI?
Over the past year IAT returned +23.73% vs +21.39% for VTI, so IAT leads on 1-year performance. Over the longest common window we track (20 years), IAT annualized +1.85% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, IAT or VTI?
IAT has been the more volatile fund at 25.5% annualized versus 15.3% for VTI. Worst drawdown: IAT -78.8% vs VTI -56.6%.
Should I hold both IAT and VTI?
IAT and VTI have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAT and VTI?
IAT and VTI share 24 common holdings with a 0.7% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, IAT or VTI?
IAT yields 2.55% while VTI yields 1.07%, so IAT currently pays the higher dividend yield.
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