TDF vs VTI
Templeton Dragon Fund 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 | TDF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.33% | 0.03% | |
| AUM | $5,054.4 | $666.9B | |
| Dividend Yield | 3.61% | 1.07% | |
| Holdings | 68 | 3,543 | |
| YTD Return | -4.56% | +13.38% | |
| 1Y Return | +6.31% | +21.12% | |
| 3Y Return (annualized) | +10.25% | +21.85% | |
| 5Y Return (annualized) | -5.95% | +12.44% | |
| Volatility (annualized) | 26.9% | 15.3% | |
| Max Drawdown | -75.1% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 8, 1994 | May 24, 2001 |
TDF vs VTI Performance
Templeton Dragon Fund (TDF) is a ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TDF returned +6.31% while VTI returned +21.12%. Year to date, TDF is down 4.56% versus a gain of 13.38% for VTI.
Over three years, TDF compounded at +10.25% per year against +21.85% for VTI; over five years the annualized figures are -5.95% and +12.44% respectively. Across the full 25-year window we track, VTI has the edge at +8.10% annualized vs +0.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TDF has been the more volatile fund, with annualized monthly volatility of 26.9% 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 -75.1% for TDF 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TDF charges 1.33% per year while VTI charges 0.03%. On a $10,000 position that is $133 vs $3 annually, a gap of $130 per year that compounds over a long holding period. On income, TDF currently yields 3.61% against 1.07% for VTI.
Holdings Overlap
TDF and VTI share 1 holdings out of 2848 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in TDF | Weight in VTI | Difference |
|---|---|---|---|
| Z | 1.25% | 0.00% | 1.25% |
Frequently Asked Questions
Which is cheaper, TDF or VTI?
TDF has an expense ratio of 1.33% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $130 per year of difference.
Which performed better, TDF or VTI?
Over the past year TDF returned +6.31% vs +21.12% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), TDF annualized +0.29% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, TDF or VTI?
TDF has been the more volatile fund at 26.9% annualized versus 15.3% for VTI. Worst drawdown: TDF -75.1% vs VTI -56.6%.
Should I hold both TDF and VTI?
TDF and VTI have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TDF and VTI?
TDF and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2848 unique securities.
Which pays a higher dividend, TDF or VTI?
TDF yields 3.61% while VTI yields 1.07%, so TDF currently pays the higher dividend yield.
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