SOFR vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricSOFRVTIWinner
Expense Ratio0.20%0.03%
AUM$453M$663.5B
Dividend Yield4.20%1.07%
Holdings63,543
YTD Return+2.30%+14.22%
1Y Return+3.93%+22.19%
3Y Return (annualized)-+21.27%
5Y Return (annualized)-+12.23%
Volatility (annualized)0.3%15.3%
Max Drawdown-0.4%-56.6%
Fund FamilyAmplify ETFsVanguard (US)
CategoryAlternativeEquity
InceptionNov 15, 2023May 24, 2001

SOFR vs VTI Performance

Amplify Samsung SOFR ETF (SOFR) is a ETF from Amplify ETFs and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SOFR returned +3.93% while VTI returned +22.19%. Year to date, SOFR is up 2.30% versus a gain of 14.22% for VTI.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 0.3% for SOFR. 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 -0.4% for SOFR 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SOFR charges 0.20% per year while VTI charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, SOFR currently yields 4.20% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

SOFR and VTI share 0 holdings out of 2784 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, SOFR or VTI?

SOFR has an expense ratio of 0.20% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, SOFR or VTI?

Over the past year SOFR returned +3.93% vs +22.19% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), SOFR annualized +4.58% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, SOFR or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 0.3% for SOFR. Worst drawdown: SOFR -0.4% vs VTI -56.6%.

Should I hold both SOFR and VTI?

SOFR and VTI have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SOFR and VTI?

SOFR and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2784 unique securities.

Which pays a higher dividend, SOFR or VTI?

SOFR yields 4.20% while VTI yields 1.07%, so SOFR currently pays the higher dividend yield.

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