ITB vs VTI
iShares US Home Construction ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | ITB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $2.3B | $663.5B | |
| Dividend Yield | 0.61% | 1.07% | |
| Holdings | 48 | 3,543 | |
| YTD Return | +1.12% | +14.16% | |
| 1Y Return | -4.19% | +23.62% | |
| 3Y Return (annualized) | +5.15% | +21.43% | |
| 5Y Return (annualized) | +7.37% | +12.33% | |
| Volatility (annualized) | 31.1% | 15.3% | |
| Max Drawdown | -87.1% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | May 24, 2001 |
ITB vs VTI Performance
iShares US Home Construction ETF (ITB) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ITB returned -4.19% while VTI returned +23.62%. Year to date, ITB is up 1.12% versus a gain of 14.16% for VTI.
Over three years, ITB compounded at +5.15% per year against +21.43% for VTI; over five years the annualized figures are +7.37% and +12.33% respectively. Across the full 20-year window we track, VTI has the edge at +8.14% annualized vs +3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITB has been the more volatile fund, with annualized monthly volatility of 31.1% 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 -87.1% for ITB 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ITB charges 0.38% per year while VTI charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, ITB currently yields 0.61% against 1.07% for VTI.
Holdings Overlap
ITB and VTI share 39 holdings out of 2789 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITB or VTI?
ITB has an expense ratio of 0.38% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, ITB or VTI?
Over the past year ITB returned -4.19% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), ITB annualized +3.62% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, ITB or VTI?
ITB has been the more volatile fund at 31.1% annualized versus 15.3% for VTI. Worst drawdown: ITB -87.1% vs VTI -56.6%.
Should I hold both ITB and VTI?
ITB and VTI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITB and VTI?
ITB and VTI share 39 common holdings with a 1.0% weight overlap. Combined, they hold 2789 unique securities.
Which pays a higher dividend, ITB or VTI?
ITB yields 0.61% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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