VFMF vs VTI

Quick Verdict

VTI has a lower expense ratio. VFMF delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VFMFMore Diversified: VTI

Side-by-Side Comparison

MetricVFMFVTIWinner
Expense Ratio0.18%0.03%
AUM$703M$663.5B
Dividend Yield1.75%1.07%
Holdings5973,543
YTD Return+21.72%+14.20%
1Y Return+37.33%+24.16%
3Y Return (annualized)+21.06%+21.12%
5Y Return (annualized)+14.63%+12.37%
Volatility (annualized)18.6%15.3%
Max Drawdown-41.3%-56.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionFeb 13, 2018May 24, 2001

VFMF vs VTI Performance

Vanguard US Multifactor ETF (VFMF) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VFMF returned +37.33% while VTI returned +24.16%. Year to date, VFMF is up 21.72% versus a gain of 14.20% for VTI.

Over three years, VFMF compounded at +21.06% per year against +21.12% for VTI; over five years the annualized figures are +14.63% and +12.37% respectively. Across the full 9-year window we track, VFMF has the edge at +12.65% annualized vs +8.14%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VFMF has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -41.3% for VFMF 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

VFMF 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, VFMF currently yields 1.75% against 1.07% for VTI.

Holdings Overlap

20.3%overlap

VFMF and VTI share 452 holdings out of 2924 unique holdings combined, representing a 20.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VFMFWeight in VTIDifference
NVDA0.13%6.32%6.19%
GOOGL0.71%2.88%2.17%
AMZN0.25%3.17%2.92%
MUProProPro
GOOGProProPro
JPM:USProProPro
XOMProProPro
LRCXProProPro
JNJProProPro
AMATProProPro
See all 10 holdings VFMF shares with VTI
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, VFMF or VTI?

VFMF 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, VFMF or VTI?

Over the past year VFMF returned +37.33% vs +24.16% for VTI, so VFMF leads on 1-year performance. Over the longest common window we track (9 years), VFMF annualized +12.65% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, VFMF or VTI?

VFMF has been the more volatile fund at 18.6% annualized versus 15.3% for VTI. Worst drawdown: VFMF -41.3% vs VTI -56.6%.

Should I hold both VFMF and VTI?

VFMF and VTI have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between VFMF and VTI?

VFMF and VTI share 452 common holdings with a 20.3% weight overlap. Combined, they hold 2924 unique securities.

Which pays a higher dividend, VFMF or VTI?

VFMF yields 1.75% while VTI yields 1.07%, so VFMF currently pays the higher dividend yield.

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