KBWB vs VTI
Invesco KBW Bank ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. KBWB delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | KBWB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $7.0B | $666.9B | |
| Dividend Yield | 1.94% | 1.07% | |
| Holdings | 30 | 3,543 | |
| YTD Return | +12.79% | +13.14% | |
| 1Y Return | +32.52% | +22.35% | |
| 3Y Return (annualized) | +36.48% | +21.83% | |
| 5Y Return (annualized) | +11.05% | +12.01% | |
| Volatility (annualized) | 23.9% | 15.3% | |
| Max Drawdown | -52.0% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2011 | May 24, 2001 |
KBWB vs VTI Performance
Invesco KBW Bank ETF (KBWB) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year KBWB returned +32.52% while VTI returned +22.35%. Year to date, KBWB is up 12.79% versus a gain of 13.14% for VTI.
Over three years, KBWB compounded at +36.48% per year against +21.83% for VTI; over five years the annualized figures are +11.05% and +12.01% respectively. Across the full 15-year window we track, KBWB has the edge at +12.31% annualized vs +8.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWB has been the more volatile fund, with annualized monthly volatility of 23.9% 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 -52.0% for KBWB 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBWB charges 0.35% per year while VTI charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, KBWB currently yields 1.94% against 1.07% for VTI.
Holdings Overlap
KBWB and VTI share 23 holdings out of 2789 unique holdings combined, representing a 3.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KBWB or VTI?
KBWB has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, KBWB or VTI?
Over the past year KBWB returned +32.52% vs +22.35% for VTI, so KBWB leads on 1-year performance. Over the longest common window we track (15 years), KBWB annualized +12.31% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, KBWB or VTI?
KBWB has been the more volatile fund at 23.9% annualized versus 15.3% for VTI. Worst drawdown: KBWB -52.0% vs VTI -56.6%.
Should I hold both KBWB and VTI?
KBWB and VTI have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWB and VTI?
KBWB and VTI share 23 common holdings with a 3.6% weight overlap. Combined, they hold 2789 unique securities.
Which pays a higher dividend, KBWB or VTI?
KBWB yields 1.94% while VTI yields 1.07%, so KBWB currently pays the higher dividend yield.
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