REIT vs VTI
ALPS Active REIT 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 | REIT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.68% | 0.03% | |
| AUM | $58M | $666.9B | |
| Dividend Yield | 2.66% | 1.07% | |
| Holdings | 30 | 3,543 | |
| YTD Return | +18.70% | +12.65% | |
| 1Y Return | +20.35% | +21.39% | |
| 3Y Return (annualized) | +12.58% | +21.54% | |
| 5Y Return (annualized) | +4.71% | +12.11% | |
| Volatility (annualized) | 18.0% | 15.3% | |
| Max Drawdown | -29.3% | -56.6% | |
| Fund Family | ALPS Advisors | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 2021 | May 24, 2001 |
REIT vs VTI Performance
ALPS Active REIT ETF (REIT) is a ETF from ALPS Advisors and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year REIT returned +20.35% while VTI returned +21.39%. Year to date, REIT is up 18.70% versus a gain of 12.65% for VTI.
Over three years, REIT compounded at +12.58% per year against +21.54% for VTI; over five years the annualized figures are +4.71% and +12.11% respectively. Across the full 6-year window we track, VTI has the edge at +8.07% annualized vs +7.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REIT has been the more volatile fund, with annualized monthly volatility of 18.0% 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 -29.3% for REIT 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
REIT charges 0.68% per year while VTI charges 0.03%. On a $10,000 position that is $68 vs $3 annually, a gap of $65 per year that compounds over a long holding period. On income, REIT currently yields 2.66% against 1.07% for VTI.
Holdings Overlap
REIT and VTI share 23 holdings out of 2793 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, REIT or VTI?
REIT has an expense ratio of 0.68% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, REIT or VTI?
Over the past year REIT returned +20.35% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), REIT annualized +7.87% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, REIT or VTI?
REIT has been the more volatile fund at 18.0% annualized versus 15.3% for VTI. Worst drawdown: REIT -29.3% vs VTI -56.6%.
Should I hold both REIT and VTI?
REIT and VTI have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REIT and VTI?
REIT and VTI share 23 common holdings with a 1.1% weight overlap. Combined, they hold 2793 unique securities.
Which pays a higher dividend, REIT or VTI?
REIT yields 2.66% while VTI yields 1.07%, so REIT currently pays the higher dividend yield.
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