POWA vs VTI
Invesco Bloomberg Pricing Power 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 | POWA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.03% | |
| AUM | $184M | $666.9B | |
| Dividend Yield | 0.93% | 1.07% | |
| Holdings | 52 | 3,543 | |
| YTD Return | +2.26% | +13.14% | |
| 1Y Return | +3.97% | +22.35% | |
| 3Y Return (annualized) | +11.83% | +21.83% | |
| 5Y Return (annualized) | +6.83% | +12.01% | |
| Volatility (annualized) | 13.3% | 15.3% | |
| Max Drawdown | -47.9% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 15, 2006 | May 24, 2001 |
POWA vs VTI Performance
Invesco Bloomberg Pricing Power ETF (POWA) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year POWA returned +3.97% while VTI returned +22.35%. Year to date, POWA is up 2.26% versus a gain of 13.14% for VTI.
Over three years, POWA compounded at +11.83% per year against +21.83% for VTI; over five years the annualized figures are +6.83% and +12.01% respectively. Across the full 20-year window we track, POWA has the edge at +8.64% annualized vs +8.09%. 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 13.3% for POWA. 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 -47.9% for POWA 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
POWA charges 0.40% per year while VTI charges 0.03%. On a $10,000 position that is $40 vs $3 annually, a gap of $37 per year that compounds over a long holding period. On income, POWA currently yields 0.93% against 1.07% for VTI.
Holdings Overlap
POWA and VTI share 43 holdings out of 2795 unique holdings combined, representing a 6.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, POWA or VTI?
POWA has an expense ratio of 0.40% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, POWA or VTI?
Over the past year POWA returned +3.97% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), POWA annualized +8.64% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, POWA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 13.3% for POWA. Worst drawdown: POWA -47.9% vs VTI -56.6%.
Should I hold both POWA and VTI?
POWA and VTI have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between POWA and VTI?
POWA and VTI share 43 common holdings with a 6.4% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, POWA or VTI?
POWA yields 0.93% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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