PHB vs VTI
Invesco Fundamental High Yield Corporate Bond ETF 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 | PHB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $387M | $663.5B | |
| Dividend Yield | 5.06% | 1.07% | |
| Holdings | 268 | 3,543 | |
| YTD Return | +0.43% | +14.16% | |
| 1Y Return | +7.15% | +23.62% | |
| 3Y Return (annualized) | +8.52% | +21.43% | |
| 5Y Return (annualized) | +3.74% | +12.33% | |
| Volatility (annualized) | 16.1% | 15.3% | |
| Max Drawdown | -71.2% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2007 | May 24, 2001 |
PHB vs VTI Performance
Invesco Fundamental High Yield Corporate Bond ETF (PHB) is a ETF from Invesco (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PHB returned +7.15% while VTI returned +23.62%. Year to date, PHB is up 0.43% versus a gain of 14.16% for VTI.
Over three years, PHB compounded at +8.52% per year against +21.43% for VTI; over five years the annualized figures are +3.74% and +12.33% respectively. Across the full 18-year window we track, VTI has the edge at +8.14% annualized vs -1.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PHB has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -71.2% for PHB 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PHB charges 0.50% per year while VTI charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, PHB currently yields 5.06% against 1.07% for VTI.
Holdings Overlap
PHB and VTI share 1 holdings out of 3042 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PHB | Weight in VTI | Difference |
|---|---|---|---|
| THC | 0.39% | 0.02% | 0.37% |
Frequently Asked Questions
Which is cheaper, PHB or VTI?
PHB has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, PHB or VTI?
Over the past year PHB returned +7.15% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (18 years), PHB annualized -1.63% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, PHB or VTI?
PHB has been the more volatile fund at 16.1% annualized versus 15.3% for VTI. Worst drawdown: PHB -71.2% vs VTI -56.6%.
Should I hold both PHB and VTI?
PHB and VTI have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHB and VTI?
PHB and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3042 unique securities.
Which pays a higher dividend, PHB or VTI?
PHB yields 5.06% while VTI yields 1.07%, so PHB currently pays the higher dividend yield.
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