LONZ vs VTI
PIMCO Senior Loan Active Exchange-Traded Fund 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 | LONZ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.03% | |
| AUM | $599M | $666.9B | |
| Dividend Yield | 9.12% | 1.07% | |
| Holdings | 307 | 3,543 | |
| YTD Return | +2.96% | +12.65% | |
| 1Y Return | +5.86% | +21.39% | |
| 3Y Return (annualized) | +7.66% | +21.54% | |
| 5Y Return (annualized) | - | +12.11% | |
| Volatility (annualized) | 3.1% | 15.3% | |
| Max Drawdown | -4.2% | -56.6% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 8, 2022 | May 24, 2001 |
LONZ vs VTI Performance
PIMCO Senior Loan Active Exchange-Traded Fund (LONZ) is a ETF from PIMCO (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year LONZ returned +5.86% while VTI returned +21.39%. Year to date, LONZ is up 2.96% versus a gain of 12.65% for VTI.
Over three years, LONZ compounded at +7.66% per year against +21.54% for VTI. Across the full 4-year window we track, VTI has the edge at +8.07% annualized vs +7.58%. 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 3.1% for LONZ. 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 -4.2% for LONZ 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LONZ charges 0.63% per year while VTI charges 0.03%. On a $10,000 position that is $63 vs $3 annually, a gap of $60 per year that compounds over a long holding period. On income, LONZ currently yields 9.12% against 1.07% for VTI.
Holdings Overlap
LONZ and VTI share 0 holdings out of 2899 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, LONZ or VTI?
LONZ has an expense ratio of 0.63% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, LONZ or VTI?
Over the past year LONZ returned +5.86% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), LONZ annualized +7.58% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, LONZ or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 3.1% for LONZ. Worst drawdown: LONZ -4.2% vs VTI -56.6%.
Should I hold both LONZ and VTI?
LONZ and VTI have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LONZ and VTI?
LONZ and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2899 unique securities.
Which pays a higher dividend, LONZ or VTI?
LONZ yields 9.12% while VTI yields 1.07%, so LONZ currently pays the higher dividend yield.
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