REM vs VTI
iShares Mortgage Real Estate 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 | REM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.03% | |
| AUM | $547M | $666.9B | |
| Dividend Yield | 8.92% | 1.07% | |
| Holdings | 37 | 3,543 | |
| YTD Return | -0.20% | +13.67% | |
| 1Y Return | +7.06% | +22.17% | |
| 3Y Return (annualized) | +8.23% | +21.93% | |
| 5Y Return (annualized) | -0.94% | +12.51% | |
| Volatility (annualized) | 24.6% | 15.3% | |
| Max Drawdown | -92.9% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2007 | May 24, 2001 |
REM vs VTI Performance
iShares Mortgage Real Estate ETF (REM) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year REM returned +7.06% while VTI returned +22.17%. Year to date, REM is down 0.20% versus a gain of 13.67% for VTI.
Over three years, REM compounded at +8.23% per year against +21.93% for VTI; over five years the annualized figures are -0.94% and +12.51% respectively. Across the full 19-year window we track, VTI has the edge at +8.11% annualized vs -8.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REM has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -92.9% for REM 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
REM charges 0.48% per year while VTI charges 0.03%. On a $10,000 position that is $48 vs $3 annually, a gap of $45 per year that compounds over a long holding period. On income, REM currently yields 8.92% against 1.07% for VTI.
Holdings Overlap
REM and VTI share 3 holdings out of 2787 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, REM or VTI?
REM has an expense ratio of 0.48% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, REM or VTI?
Over the past year REM returned +7.06% vs +22.17% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), REM annualized -8.67% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, REM or VTI?
REM has been the more volatile fund at 24.6% annualized versus 15.3% for VTI. Worst drawdown: REM -92.9% vs VTI -56.6%.
Should I hold both REM and VTI?
REM and VTI have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REM and VTI?
REM and VTI share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2787 unique securities.
Which pays a higher dividend, REM or VTI?
REM yields 8.92% while VTI yields 1.07%, so REM currently pays the higher dividend yield.
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