IGI vs VTI
Western Asset Investment Grade Defined Opportunity Trust Inc. 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 | IGI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $103M | $666.9B | |
| Dividend Yield | 5.01% | 1.07% | |
| Holdings | 415 | 3,543 | |
| YTD Return | -0.38% | +12.65% | |
| 1Y Return | +1.53% | +21.39% | |
| 3Y Return (annualized) | +4.98% | +21.54% | |
| 5Y Return (annualized) | -1.66% | +12.11% | |
| Volatility (annualized) | 11.2% | 15.3% | |
| Max Drawdown | -34.0% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 26, 2009 | May 24, 2001 |
IGI vs VTI Performance
Western Asset Investment Grade Defined Opportunity Trust Inc. (IGI) is a ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IGI returned +1.53% while VTI returned +21.39%. Year to date, IGI is down 0.38% versus a gain of 12.65% for VTI.
Over three years, IGI compounded at +4.98% per year against +21.54% for VTI; over five years the annualized figures are -1.66% and +12.11% respectively. Across the full 17-year window we track, VTI has the edge at +8.07% annualized vs +0.19%. 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 11.2% for IGI. 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 -34.0% for IGI 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGI charges 0.85% per year while VTI charges 0.03%. On a $10,000 position that is $85 vs $3 annually, a gap of $82 per year that compounds over a long holding period. On income, IGI currently yields 5.01% against 1.07% for VTI.
Holdings Overlap
IGI and VTI share 1 holdings out of 3071 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IGI | Weight in VTI | Difference |
|---|---|---|---|
| C | 0.32% | 0.32% | 0.00% |
Frequently Asked Questions
Which is cheaper, IGI or VTI?
IGI has an expense ratio of 0.85% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, IGI or VTI?
Over the past year IGI returned +1.53% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), IGI annualized +0.19% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, IGI or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 11.2% for IGI. Worst drawdown: IGI -34.0% vs VTI -56.6%.
Should I hold both IGI and VTI?
IGI and VTI have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGI and VTI?
IGI and VTI share 1 common holdings with a 0.3% weight overlap. Combined, they hold 3071 unique securities.
Which pays a higher dividend, IGI or VTI?
IGI yields 5.01% while VTI yields 1.07%, so IGI currently pays the higher dividend yield.
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