UTWO vs VTI
F/m US Treasury 2 Year Note ETF 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 | UTWO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $490M | $666.9B | |
| Dividend Yield | 3.84% | 1.07% | |
| Holdings | 2 | 3,543 | |
| YTD Return | +0.95% | +12.65% | |
| 1Y Return | +2.67% | +21.39% | |
| 3Y Return (annualized) | +4.07% | +21.54% | |
| 5Y Return (annualized) | - | +12.11% | |
| Volatility (annualized) | 1.9% | 15.3% | |
| Max Drawdown | -2.0% | -56.6% | |
| Fund Family | US Benchmark Series | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 8, 2022 | May 24, 2001 |
UTWO vs VTI Performance
F/m US Treasury 2 Year Note ETF (UTWO) is a ETF from US Benchmark Series and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year UTWO returned +2.67% while VTI returned +21.39%. Year to date, UTWO is up 0.95% versus a gain of 12.65% for VTI.
Over three years, UTWO compounded at +4.07% per year against +21.54% for VTI. Across the full 4-year window we track, VTI has the edge at +8.07% annualized vs +2.99%. 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 1.9% for UTWO. 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 -2.0% for UTWO 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UTWO charges 0.15% per year while VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, UTWO currently yields 3.84% against 1.07% for VTI.
Holdings Overlap
UTWO and VTI share 0 holdings out of 2788 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, UTWO or VTI?
UTWO has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, UTWO or VTI?
Over the past year UTWO returned +2.67% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), UTWO annualized +2.99% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, UTWO or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 1.9% for UTWO. Worst drawdown: UTWO -2.0% vs VTI -56.6%.
Should I hold both UTWO and VTI?
UTWO and VTI have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UTWO and VTI?
UTWO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2788 unique securities.
Which pays a higher dividend, UTWO or VTI?
UTWO yields 3.84% while VTI yields 1.07%, so UTWO currently pays the higher dividend yield.
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