LQTI vs VTI
FT Vest Investment Grade & Target Income ETF 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 | LQTI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.03% | |
| AUM | $270M | $666.9B | |
| Dividend Yield | 9.31% | 1.07% | |
| Holdings | 4 | 3,543 | |
| YTD Return | -0.23% | +13.12% | |
| 1Y Return | +1.94% | +20.82% | |
| 3Y Return (annualized) | - | +21.43% | |
| 5Y Return (annualized) | - | +11.84% | |
| Volatility (annualized) | 3.6% | 15.3% | |
| Max Drawdown | -3.4% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 12, 2025 | May 24, 2001 |
LQTI vs VTI Performance
FT Vest Investment Grade & Target Income ETF (LQTI) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year LQTI returned +1.94% while VTI returned +20.82%. Year to date, LQTI is down 0.23% versus a gain of 13.12% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.6% for LQTI. 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 -3.4% for LQTI 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
LQTI charges 0.65% per year while VTI charges 0.03%. On a $10,000 position that is $65 vs $3 annually, a gap of $62 per year that compounds over a long holding period. On income, LQTI currently yields 9.31% against 1.07% for VTI.
Frequently Asked Questions
Which is cheaper, LQTI or VTI?
LQTI has an expense ratio of 0.65% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, LQTI or VTI?
Over the past year LQTI returned +1.94% vs +20.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), LQTI annualized +3.89% vs +8.08% for VTI. Past performance does not guarantee future results.
Which is riskier, LQTI or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 3.6% for LQTI. Worst drawdown: LQTI -3.4% vs VTI -56.6%.
Should I hold both LQTI and VTI?
LQTI and VTI have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, LQTI or VTI?
LQTI yields 9.31% while VTI yields 1.07%, so LQTI currently pays the higher dividend yield.
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