IIF vs VTI
Morgan Stanley India Investment Fund 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 | IIF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.28% | 0.03% | |
| AUM | $318M | $666.9B | |
| Dividend Yield | 7.69% | 1.07% | |
| Holdings | 46 | 3,543 | |
| YTD Return | -8.31% | +12.65% | |
| 1Y Return | -9.84% | +21.39% | |
| 3Y Return (annualized) | +12.75% | +21.54% | |
| 5Y Return (annualized) | +8.33% | +12.11% | |
| Volatility (annualized) | 31.0% | 15.3% | |
| Max Drawdown | -62.1% | -56.6% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 1994 | May 24, 2001 |
IIF vs VTI Performance
Morgan Stanley India Investment Fund Inc. (IIF) is a ETF from Morgan Stanley Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IIF returned -9.84% while VTI returned +21.39%. Year to date, IIF is down 8.31% versus a gain of 12.65% for VTI.
Over three years, IIF compounded at +12.75% per year against +21.54% for VTI; over five years the annualized figures are +8.33% and +12.11% respectively. Across the full 25-year window we track, IIF has the edge at +17.66% annualized vs +8.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IIF has been the more volatile fund, with annualized monthly volatility of 31.0% 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 -62.1% for IIF 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIF charges 1.28% per year while VTI charges 0.03%. On a $10,000 position that is $128 vs $3 annually, a gap of $125 per year that compounds over a long holding period. On income, IIF currently yields 7.69% against 1.07% for VTI.
Holdings Overlap
IIF and VTI share 0 holdings out of 2833 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IIF or VTI?
IIF has an expense ratio of 1.28% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $125 per year of difference.
Which performed better, IIF or VTI?
Over the past year IIF returned -9.84% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), IIF annualized +17.66% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, IIF or VTI?
IIF has been the more volatile fund at 31.0% annualized versus 15.3% for VTI. Worst drawdown: IIF -62.1% vs VTI -56.6%.
Should I hold both IIF and VTI?
IIF and VTI have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIF and VTI?
IIF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2833 unique securities.
Which pays a higher dividend, IIF or VTI?
IIF yields 7.69% while VTI yields 1.07%, so IIF currently pays the higher dividend yield.
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