PEPS vs VTI
Parametric Equity Plus ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. PEPS delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | PEPS | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $30M | $666.9B | |
| Dividend Yield | 0.93% | 1.07% | |
| Holdings | 193 | 3,543 | |
| YTD Return | +13.04% | +14.82% | |
| 1Y Return | +22.74% | +22.43% | |
| 3Y Return (annualized) | - | +21.93% | |
| 5Y Return (annualized) | - | +12.34% | |
| Volatility (annualized) | 13.3% | 15.4% | |
| Max Drawdown | -21.0% | -56.6% | |
| Fund Family | Parametric | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 7, 2024 | May 24, 2001 |
PEPS vs VTI Performance
Parametric Equity Plus ETF (PEPS) is a ETF from Parametric and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PEPS returned +22.74% while VTI returned +22.43%. Year to date, PEPS is up 13.04% versus a gain of 14.82% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 13.3% for PEPS. 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 -21.0% for PEPS 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PEPS charges 0.10% per year while VTI charges 0.03%. On a $10,000 position that is $10 vs $3 annually, a gap of $7 per year that compounds over a long holding period. On income, PEPS currently yields 0.93% against 1.07% for VTI.
Holdings Overlap
PEPS and VTI share 154 holdings out of 2808 unique holdings combined, representing a 58.2% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, PEPS or VTI?
PEPS has an expense ratio of 0.10% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, PEPS or VTI?
Over the past year PEPS returned +22.74% vs +22.43% for VTI, so PEPS leads on 1-year performance. Over the longest common window we track (2 years), PEPS annualized +18.41% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, PEPS or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 13.3% for PEPS. Worst drawdown: PEPS -21.0% vs VTI -56.6%.
Should I hold both PEPS and VTI?
PEPS and VTI have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between PEPS and VTI?
PEPS and VTI share 154 common holdings with a 58.2% weight overlap. Combined, they hold 2808 unique securities.
Which pays a higher dividend, PEPS or VTI?
PEPS yields 0.93% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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