VKQ vs VTI
Invesco Municipal Trust 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 | VKQ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.77% | 0.03% | |
| AUM | $2,913.25 | $666.9B | |
| Dividend Yield | 7.67% | 1.07% | |
| Holdings | 537 | 3,543 | |
| YTD Return | +4.58% | +13.14% | |
| 1Y Return | +15.43% | +22.35% | |
| 3Y Return (annualized) | +9.52% | +21.83% | |
| 5Y Return (annualized) | -1.20% | +12.01% | |
| Volatility (annualized) | 13.9% | 15.3% | |
| Max Drawdown | -58.5% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 27, 1991 | May 24, 2001 |
VKQ vs VTI Performance
Invesco Municipal Trust (VKQ) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VKQ returned +15.43% while VTI returned +22.35%. Year to date, VKQ is up 4.58% versus a gain of 13.14% for VTI.
Over three years, VKQ compounded at +9.52% per year against +21.83% for VTI; over five years the annualized figures are -1.20% and +12.01% respectively. Across the full 25-year window we track, VTI has the edge at +8.09% annualized vs -0.18%. 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 13.9% for VKQ. 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 VKQ 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VKQ charges 1.77% per year while VTI charges 0.03%. On a $10,000 position that is $177 vs $3 annually, a gap of $174 per year that compounds over a long holding period. On income, VKQ currently yields 7.67% against 1.07% for VTI.
Holdings Overlap
VKQ and VTI share 0 holdings out of 3063 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, VKQ or VTI?
VKQ has an expense ratio of 1.77% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $174 per year of difference.
Which performed better, VKQ or VTI?
Over the past year VKQ returned +15.43% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), VKQ annualized -0.18% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, VKQ or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 13.9% for VKQ. Worst drawdown: VKQ -58.5% vs VTI -56.6%.
Should I hold both VKQ and VTI?
VKQ and VTI have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VKQ and VTI?
VKQ and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3063 unique securities.
Which pays a higher dividend, VKQ or VTI?
VKQ yields 7.67% while VTI yields 1.07%, so VKQ currently pays the higher dividend yield.
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