VFIAX vs VTI
Vanguard 500 Index Fund Admiral Class vs Vanguard Morningstar Total Stock Market ETF
Which is better, VFIAX or VTI?
Nearly the same fund. VTI costs less.
VTI has a lower expense ratio. VFIAX led over 3Y, 5Y and the full window, VTI over 1Y. The two have moved almost in lockstep, correlation 0.99. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 37.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VFIAX | VTI |
|---|---|---|
| Expense Ratio | 0.04% | 0.03%Best |
| AUM | $677.6B | $690.1B |
| Dividend Yield | 1.03% | 1.03% |
| Holdings | 506 | 3,524 |
| YTD Price Return | +13.88%Best | +13.46% |
| 1Y Price Return | +15.97% | +16.71%Best |
| 3Y Price Return (annualized) | +21.49%Best | +21.37% |
| 5Y Price Return (annualized) | +12.37%Best | +11.18% |
| Volatility (annualized) | 15.4%Best | 15.9% |
| Max Drawdown | -25.4%Best | -26.2% |
| $10,000 over 5 years | $17,916Best | $16,988 |
| Top 10 Weight | 37.6% | 33.3%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 13, 2000 | May 24, 2001 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VFIAX. Both funds are measured the same way, so the comparison holds. VFIAX yields 1.03% and VTI 1.03% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 13, 2021 to Oct 9, 2026 (5 years).
VFIAX vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
VFIAX vs VTI Performance
Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VFIAX returned +15.97% while VTI returned +16.71%. Year to date, VFIAX is up 13.88% versus a gain of 13.46% for VTI.
Over three years, VFIAX compounded at +21.49% per year against +21.37% for VTI; over five years the annualized figures are +12.37% and +11.18% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 15.4% for VFIAX. 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 -25.4% for VFIAX and -26.2% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VFIAX charges 0.04% per year while VTI charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VFIAX currently yields 1.03% against 1.03% for VTI.
Structure and taxes
VFIAX is a mutual fund and VTI is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
99.3% of VFIAX's money is in holdings VTI also owns. 88.1% of VTI's money is in holdings VFIAX also owns.
Most of VFIAX is already inside VTI. Owning both mostly buys the same companies twice.
490 positions in common, counted across the 494 positions we hold weights for in VFIAX and 3,463 in VTI, against full books of 506 and 3,524.
What only one of them owns
Our book lists 667 positions for VTI that do not appear in our book for VFIAX (9.6% of the fund), and 4 for VFIAX that do not appear in VTI (0.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VFIAX | Weight in VTI | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.55% | 6.40% | 1.15% |
| AAPLApple, Inc | 7.05% | 6.29% | 0.76% |
| MSFTMicrosoft Corp | 5.36% | 4.79% | 0.57% |
| AMZNAmazon.Com Inc | 4.13% | 3.65% | 0.48% |
| GOOGLAlphabet Inc,class A | 3.24% | 2.90% | 0.34% |
| AVGOBroadcom Inc | 2.86% | 2.56% | 0.30% |
| GOOGAlphabet Inc. C | 2.62% | 2.31% | 0.31% |
| METAMeta Platforms Inc | 1.90% | 1.70% | 0.20% |
| JPMJpmorgan Chase | 1.46% | 1.31% | 0.15% |
| LLYEli Lilly & Co. | 1.41% | 1.35% | 0.06% |
99.3% of VFIAX is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VFIAX or VTI?
VFIAX has an expense ratio of 0.04% while VTI charges 0.03%. VTI is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VFIAX or VTI?
Over the past year VFIAX returned +15.97% vs +16.71% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFIAX or VTI?
VTI has been the more volatile fund at 15.9% annualized versus 15.4% for VFIAX. Worst drawdown: VFIAX -25.4% vs VTI -26.2%.
Should I hold both VFIAX and VTI?
VFIAX and VTI have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VFIAX and VTI?
99.3% of VFIAX's money is in holdings VTI also owns. 88.1% of VTI's is in holdings VFIAX also owns. They hold 490 positions in common, counted across the 494 positions we hold weights for in VFIAX and 3,463 in VTI.
Which pays a higher dividend, VFIAX or VTI?
VFIAX yields 1.03% while VTI yields 1.03%, so VFIAX currently pays the higher dividend yield.
Is it better to hold VFIAX or VTI in a taxable account?
VTI is an ETF and VFIAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTI better than VFIAX?
VTI has a lower expense ratio. VFIAX led over 3Y, 5Y and the full window, VTI over 1Y. The two have moved almost in lockstep, correlation 0.99. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.