VCEB vs VTI
Vanguard ESG US Corporate Bond 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 | VCEB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $1.1B | $666.9B | |
| Dividend Yield | 4.74% | 1.07% | |
| Holdings | 2,721 | 3,543 | |
| YTD Return | -4.07% | +12.23% | |
| 1Y Return | -1.94% | +20.11% | |
| 3Y Return (annualized) | +3.92% | +20.52% | |
| 5Y Return (annualized) | -0.86% | +11.49% | |
| Volatility (annualized) | 7.3% | 15.3% | |
| Max Drawdown | -21.7% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2020 | May 24, 2001 |
VCEB vs VTI Performance
Vanguard ESG US Corporate Bond ETF (VCEB) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VCEB returned -1.94% while VTI returned +20.11%. Year to date, VCEB is down 4.07% versus a gain of 12.23% for VTI.
Over three years, VCEB compounded at +3.92% per year against +20.52% for VTI; over five years the annualized figures are -0.86% and +11.49% respectively. Across the full 6-year window we track, VTI has the edge at +8.04% annualized vs -0.47%. 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 7.3% for VCEB. 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 -21.7% for VCEB 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCEB charges 0.12% per year while VTI charges 0.03%. On a $10,000 position that is $12 vs $3 annually, a gap of $9 per year that compounds over a long holding period. On income, VCEB currently yields 4.74% against 1.07% for VTI.
Holdings Overlap
VCEB and VTI share 1 holdings out of 3323 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 VCEB | Weight in VTI | Difference |
|---|---|---|---|
| AON | 0.01% | 0.09% | 0.08% |
Frequently Asked Questions
Which is cheaper, VCEB or VTI?
VCEB has an expense ratio of 0.12% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, VCEB or VTI?
Over the past year VCEB returned -1.94% vs +20.11% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), VCEB annualized -0.47% vs +8.04% for VTI. Past performance does not guarantee future results.
Which is riskier, VCEB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 7.3% for VCEB. Worst drawdown: VCEB -21.7% vs VTI -56.6%.
Should I hold both VCEB and VTI?
VCEB and VTI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCEB and VTI?
VCEB and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3323 unique securities.
Which pays a higher dividend, VCEB or VTI?
VCEB yields 4.74% while VTI yields 1.07%, so VCEB currently pays the higher dividend yield.
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