RAAX vs VTI
VanEck Real Assets ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. RAAX delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | RAAX | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.03% | |
| AUM | $1.1B | $666.9B | |
| Dividend Yield | 2.11% | 1.07% | |
| Holdings | 123 | 3,543 | |
| YTD Return | +18.84% | +13.14% | |
| 1Y Return | +34.58% | +22.35% | |
| 3Y Return (annualized) | +21.31% | +21.83% | |
| 5Y Return (annualized) | +14.75% | +12.01% | |
| Volatility (annualized) | 14.8% | 15.3% | |
| Max Drawdown | -33.9% | -56.6% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Apr 9, 2018 | May 24, 2001 |
RAAX vs VTI Performance
VanEck Real Assets ETF (RAAX) is a ETF from VanEck and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year RAAX returned +34.58% while VTI returned +22.35%. Year to date, RAAX is up 18.84% versus a gain of 13.14% for VTI.
Over three years, RAAX compounded at +21.31% per year against +21.83% for VTI; over five years the annualized figures are +14.75% and +12.01% respectively. Across the full 8-year window we track, RAAX has the edge at +9.56% 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 14.8% for RAAX. 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 -33.9% for RAAX 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAAX charges 0.55% per year while VTI charges 0.03%. On a $10,000 position that is $55 vs $3 annually, a gap of $52 per year that compounds over a long holding period. On income, RAAX currently yields 2.11% against 1.07% for VTI.
Holdings Overlap
RAAX and VTI share 62 holdings out of 2837 unique holdings combined, representing a 6.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RAAX or VTI?
RAAX has an expense ratio of 0.55% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, RAAX or VTI?
Over the past year RAAX returned +34.58% vs +22.35% for VTI, so RAAX leads on 1-year performance. Over the longest common window we track (8 years), RAAX annualized +9.56% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, RAAX or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.8% for RAAX. Worst drawdown: RAAX -33.9% vs VTI -56.6%.
Should I hold both RAAX and VTI?
RAAX and VTI have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAAX and VTI?
RAAX and VTI share 62 common holdings with a 6.7% weight overlap. Combined, they hold 2837 unique securities.
Which pays a higher dividend, RAAX or VTI?
RAAX yields 2.11% while VTI yields 1.07%, so RAAX currently pays the higher dividend yield.
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