VGM vs VTI
Invesco Trust for Investment Grade Municipals 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 | VGM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 3.13% | 0.03% | |
| AUM | $3,008.32 | $666.9B | |
| Dividend Yield | 7.65% | 1.07% | |
| Holdings | 534 | 3,543 | |
| YTD Return | +3.75% | +12.65% | |
| 1Y Return | +15.87% | +21.39% | |
| 3Y Return (annualized) | +10.82% | +21.54% | |
| 5Y Return (annualized) | -0.19% | +12.11% | |
| Volatility (annualized) | 12.3% | 15.3% | |
| Max Drawdown | -58.5% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 24, 1992 | May 24, 2001 |
VGM vs VTI Performance
Invesco Trust for Investment Grade Municipals (VGM) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VGM returned +15.87% while VTI returned +21.39%. Year to date, VGM is up 3.75% versus a gain of 12.65% for VTI.
Over three years, VGM compounded at +10.82% per year against +21.54% for VTI; over five years the annualized figures are -0.19% and +12.11% respectively. Across the full 25-year window we track, VTI has the edge at +8.07% annualized vs -0.30%. 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 12.3% for VGM. 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 -58.5% for VGM 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGM charges 3.13% per year while VTI charges 0.03%. On a $10,000 position that is $313 vs $3 annually, a gap of $310 per year that compounds over a long holding period. On income, VGM currently yields 7.65% against 1.07% for VTI.
Holdings Overlap
VGM and VTI share 0 holdings out of 3057 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, VGM or VTI?
VGM has an expense ratio of 3.13% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $310 per year of difference.
Which performed better, VGM or VTI?
Over the past year VGM returned +15.87% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), VGM annualized -0.30% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, VGM or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.3% for VGM. Worst drawdown: VGM -58.5% vs VTI -56.6%.
Should I hold both VGM and VTI?
VGM and VTI have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGM and VTI?
VGM and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3057 unique securities.
Which pays a higher dividend, VGM or VTI?
VGM yields 7.65% while VTI yields 1.07%, so VGM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.