TDTT vs VTI
FlexShares iBoxx 3 Year Target Duration TIPS Index 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 | TDTT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $2.5B | $666.9B | |
| Dividend Yield | 5.14% | 1.07% | |
| Holdings | 24 | 3,543 | |
| YTD Return | +1.85% | +12.65% | |
| 1Y Return | +2.76% | +21.39% | |
| 3Y Return (annualized) | +5.17% | +21.54% | |
| 5Y Return (annualized) | +2.73% | +12.11% | |
| Volatility (annualized) | 2.7% | 15.3% | |
| Max Drawdown | -8.3% | -56.6% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2011 | May 24, 2001 |
TDTT vs VTI Performance
FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) is a ETF from Flexshares Trust and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TDTT returned +2.76% while VTI returned +21.39%. Year to date, TDTT is up 1.85% versus a gain of 12.65% for VTI.
Over three years, TDTT compounded at +5.17% per year against +21.54% for VTI; over five years the annualized figures are +2.73% and +12.11% respectively. Across the full 15-year window we track, VTI has the edge at +8.07% annualized vs +1.45%. 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 2.7% for TDTT. 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 -8.3% for TDTT 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TDTT 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, TDTT currently yields 5.14% against 1.07% for VTI.
Holdings Overlap
TDTT and VTI share 0 holdings out of 2806 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, TDTT or VTI?
TDTT 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, TDTT or VTI?
Over the past year TDTT returned +2.76% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), TDTT annualized +1.45% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, TDTT or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.7% for TDTT. Worst drawdown: TDTT -8.3% vs VTI -56.6%.
Should I hold both TDTT and VTI?
TDTT and VTI have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TDTT and VTI?
TDTT and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2806 unique securities.
Which pays a higher dividend, TDTT or VTI?
TDTT yields 5.14% while VTI yields 1.07%, so TDTT currently pays the higher dividend yield.
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