RNEM vs VTI
First Trust Emerging Markets Equity Select ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, RNEM or VTI?
Large Cap Value against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. RNEM is less concentrated, with 26.7% of the fund in its ten largest positions against 33.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | RNEM | VTI |
|---|---|---|
| Expense Ratio | 0.75% | 0.03%Best |
| AUM | $17M | $666.9B |
| Dividend Yield | 2.28% | 1.03% |
| Holdings | 311 | 3,543 |
| YTD Return | -0.67% | +12.43%Best |
| 1Y Return | +2.94% | +15.92%Best |
| 3Y Return (annualized) | +7.08% | +22.42%Best |
| 5Y Return (annualized) | +5.19% | +12.37%Best |
| Volatility (annualized) | 14.3%Best | 16.4% |
| Max Drawdown | -42.3% | -35.0%Best |
| $10,000 over 5 years | $12,879 | $17,916Best |
| Top 10 Weight | 26.7%Best | 33.3% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Jun 20, 2017 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Jun 23, 2017 to Sep 28, 2026 (9.3 years).
RNEM vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.3 years both funds cover.
RNEM vs VTI Performance
First Trust Emerging Markets Equity Select ETF (RNEM) is an ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year RNEM returned +2.94% while VTI returned +15.92%. Year to date, RNEM is down 0.67% versus a gain of 12.43% for VTI.
Over three years, RNEM compounded at +7.08% per year against +22.42% for VTI; over five years the annualized figures are +5.19% and +12.37% respectively. Across the full 9-year window we track, VTI has the edge at +13.55% annualized vs +2.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 14.3% for RNEM. 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 -42.3% for RNEM and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
RNEM charges 0.75% per year while VTI charges 0.03%. On a $10,000 position that is $75 vs $3 annually, a gap of $72 per year that compounds over a long holding period. On income, RNEM currently yields 2.28% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 286 holdings in RNEM and 3,463 in VTI, totalling 97.0% and 98.1% of the two funds. That is not enough of VTI to divide by, so no overlap percentage is shown here. Within what we can see, 2 positions appear in both.
2 positions in common, counted across the 286 positions we hold weights for in RNEM and 3,463 in VTI, against full books of 311 and 3,543.
What only one of them owns
Our book lists 1,149 positions for VTI that do not appear in our book for RNEM (97.4% of the fund), and 11 for RNEM that do not appear in VTI (5.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of RNEM and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, RNEM or VTI?
RNEM has an expense ratio of 0.75% while VTI charges 0.03%. VTI is the cheaper option, by $72 a year on a $10,000 investment.
Which performed better, RNEM or VTI?
Over the past year RNEM returned +2.94% vs +15.92% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (9 years), RNEM annualized +2.69% vs +13.55% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RNEM or VTI?
VTI has been the more volatile fund at 16.4% annualized versus 14.3% for RNEM. Worst drawdown: RNEM -42.3% vs VTI -35.0%.
Should I hold both RNEM and VTI?
RNEM and VTI have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, RNEM or VTI?
RNEM yields 2.28% while VTI yields 1.03%, so RNEM currently pays the higher dividend yield.
Is VTI better than RNEM?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. RNEM is less concentrated, with 26.7% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.