THW vs VTI
Abrdn World Healthcare Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. THW delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | THW | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 3.00% | 0.03% | |
| AUM | $483M | $666.9B | |
| Dividend Yield | 10.27% | 1.07% | |
| Holdings | 123 | 3,543 | |
| YTD Return | +21.48% | +13.67% | |
| 1Y Return | +40.96% | +22.17% | |
| 3Y Return (annualized) | +14.66% | +21.93% | |
| 5Y Return (annualized) | +7.67% | +12.51% | |
| Volatility (annualized) | 21.1% | 15.3% | |
| Max Drawdown | -55.6% | -56.6% | |
| Fund Family | Aberdeen | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2015 | May 24, 2001 |
THW vs VTI Performance
Abrdn World Healthcare Fund (THW) is a ETF from Aberdeen and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year THW returned +40.96% while VTI returned +22.17%. Year to date, THW is up 21.48% versus a gain of 13.67% for VTI.
Over three years, THW compounded at +14.66% per year against +21.93% for VTI; over five years the annualized figures are +7.67% and +12.51% respectively. Across the full 11-year window we track, VTI has the edge at +8.11% annualized vs +2.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
THW has been the more volatile fund, with annualized monthly volatility of 21.1% 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 -55.6% for THW 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
THW charges 3.00% per year while VTI charges 0.03%. On a $10,000 position that is $300 vs $3 annually, a gap of $297 per year that compounds over a long holding period. On income, THW currently yields 10.27% against 1.07% for VTI.
Holdings Overlap
THW and VTI share 36 holdings out of 2846 unique holdings combined, representing a 6.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, THW or VTI?
THW has an expense ratio of 3.00% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $297 per year of difference.
Which performed better, THW or VTI?
Over the past year THW returned +40.96% vs +22.17% for VTI, so THW leads on 1-year performance. Over the longest common window we track (11 years), THW annualized +2.24% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, THW or VTI?
THW has been the more volatile fund at 21.1% annualized versus 15.3% for VTI. Worst drawdown: THW -55.6% vs VTI -56.6%.
Should I hold both THW and VTI?
THW and VTI have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between THW and VTI?
THW and VTI share 36 common holdings with a 6.3% weight overlap. Combined, they hold 2846 unique securities.
Which pays a higher dividend, THW or VTI?
THW yields 10.27% while VTI yields 1.07%, so THW currently pays the higher dividend yield.
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