SMB vs VTI
VanEck Short Muni ETF vs Vanguard 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 | SMB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $312M | $663.5B | |
| Dividend Yield | 2.69% | 1.07% | |
| Holdings | 333 | 3,543 | |
| YTD Return | -0.86% | +14.96% | |
| 1Y Return | +0.48% | +22.39% | |
| 3Y Return (annualized) | +2.88% | +21.51% | |
| 5Y Return (annualized) | +0.83% | +12.36% | |
| Volatility (annualized) | 20.6% | 15.4% | |
| Max Drawdown | -29.3% | -56.6% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 22, 2008 | May 24, 2001 |
SMB vs VTI Performance
VanEck Short Muni ETF (SMB) is a ETF from VanEck and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SMB returned +0.48% while VTI returned +22.39%. Year to date, SMB is down 0.86% versus a gain of 14.96% for VTI.
Over three years, SMB compounded at +2.88% per year against +21.51% for VTI; over five years the annualized figures are +0.83% and +12.36% respectively. Across the full 19-year window we track, VTI has the edge at +8.16% annualized vs +1.88%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMB has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 15.4% 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 SMB 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMB charges 0.07% per year while VTI charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, SMB currently yields 2.69% against 1.07% for VTI.
Holdings Overlap
SMB and VTI share 0 holdings out of 2960 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, SMB or VTI?
SMB has an expense ratio of 0.07% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SMB or VTI?
Over the past year SMB returned +0.48% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), SMB annualized +1.88% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, SMB or VTI?
SMB has been the more volatile fund at 20.6% annualized versus 15.4% for VTI. Worst drawdown: SMB -29.3% vs VTI -56.6%.
Should I hold both SMB and VTI?
SMB and VTI have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMB and VTI?
SMB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2960 unique securities.
Which pays a higher dividend, SMB or VTI?
SMB yields 2.69% while VTI yields 1.07%, so SMB currently pays the higher dividend yield.
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