TDTF 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

MetricTDTFVTIWinner
Expense Ratio0.18%0.03%
AUM$1.0B$663.5B
Dividend Yield4.73%1.07%
Holdings183,543
YTD Return+0.35%+14.22%
1Y Return+1.35%+22.19%
3Y Return (annualized)+4.43%+21.27%
5Y Return (annualized)+1.03%+12.23%
Volatility (annualized)4.3%15.3%
Max Drawdown-12.0%-56.6%
Fund FamilyFlexshares TrustVanguard (US)
CategoryFixed IncomeEquity
InceptionSep 19, 2011May 24, 2001

TDTF vs VTI Performance

FlexShares iBoxx 5 Year Target Duration TIPS Index Fund (TDTF) is a ETF from Flexshares Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TDTF returned +1.35% while VTI returned +22.19%. Year to date, TDTF is up 0.35% versus a gain of 14.22% for VTI.

Over three years, TDTF compounded at +4.43% per year against +21.27% for VTI; over five years the annualized figures are +1.03% and +12.23% respectively. Across the full 15-year window we track, VTI has the edge at +8.14% annualized vs +1.30%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.3% for TDTF. 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 -12.0% for TDTF 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TDTF charges 0.18% per year while VTI charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, TDTF currently yields 4.73% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

TDTF and VTI share 0 holdings out of 2797 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, TDTF or VTI?

TDTF has an expense ratio of 0.18% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, TDTF or VTI?

Over the past year TDTF returned +1.35% vs +22.19% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), TDTF annualized +1.30% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, TDTF or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 4.3% for TDTF. Worst drawdown: TDTF -12.0% vs VTI -56.6%.

Should I hold both TDTF and VTI?

TDTF and VTI have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TDTF and VTI?

TDTF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2797 unique securities.

Which pays a higher dividend, TDTF or VTI?

TDTF yields 4.73% while VTI yields 1.07%, so TDTF currently pays the higher dividend yield.

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