MDIV vs VTI
First Trust Multi-Asset Diversified Income Index Fund 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 | MDIV | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.03% | |
| AUM | $428M | $663.5B | |
| Dividend Yield | 6.13% | 1.07% | |
| Holdings | 125 | 3,543 | |
| YTD Return | +10.89% | +13.87% | |
| 1Y Return | +12.27% | +23.31% | |
| 3Y Return (annualized) | +10.81% | +21.17% | |
| 5Y Return (annualized) | +6.69% | +12.23% | |
| Volatility (annualized) | 13.6% | 15.3% | |
| Max Drawdown | -57.0% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 13, 2012 | May 24, 2001 |
MDIV vs VTI Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) is a ETF from First Trust Portfolios (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MDIV returned +12.27% while VTI returned +23.31%. Year to date, MDIV is up 10.89% versus a gain of 13.87% for VTI.
Over three years, MDIV compounded at +10.81% per year against +21.17% for VTI; over five years the annualized figures are +6.69% and +12.23% respectively. Across the full 14-year window we track, VTI has the edge at +8.13% annualized vs +1.15%. 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 13.6% for MDIV. 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 -57.0% for MDIV 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MDIV charges 0.71% per year while VTI charges 0.03%. On a $10,000 position that is $71 vs $3 annually, a gap of $68 per year that compounds over a long holding period. On income, MDIV currently yields 6.13% against 1.07% for VTI.
Holdings Overlap
MDIV and VTI share 56 holdings out of 2844 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MDIV or VTI?
MDIV has an expense ratio of 0.71% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, MDIV or VTI?
Over the past year MDIV returned +12.27% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +1.15% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, MDIV or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 13.6% for MDIV. Worst drawdown: MDIV -57.0% vs VTI -56.6%.
Should I hold both MDIV and VTI?
MDIV and VTI have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MDIV and VTI?
MDIV and VTI share 56 common holdings with a 2.1% weight overlap. Combined, they hold 2844 unique securities.
Which pays a higher dividend, MDIV or VTI?
MDIV yields 6.13% while VTI yields 1.07%, so MDIV currently pays the higher dividend yield.
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