VLT vs VTI

VLT vs VTI

Which is better, VLT or VTI?

High Yield Bond against Large Cap Blend.

VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VTIHigher Returns: VTI

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

MetricVLTVTI
Expense Ratio1.95%0.03%Best
AUM$3,093.5$666.9B
Dividend Yield10.38%1.03%
Holdings2703,543
YTD Return-8.47%+12.30%Best
1Y Return-7.25%+16.08%Best
3Y Return (annualized)+8.50%+21.01%Best
5Y Return (annualized)+1.73%+12.36%Best
Volatility (annualized)19.6%15.3%Best
Max Drawdown-84.0%-56.6%Best
$10,000 over 5 years$10,895$17,908Best
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Blend
InceptionApr 28, 1989May 24, 2001

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: May 31, 2001 to Sep 18, 2026 (25.3 years).

VLT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

VLT vs VTI Performance

Invesco High Income Trust II (VLT) is an ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VLT returned -7.25% while VTI returned +16.08%. Year to date, VLT is down 8.47% versus a gain of 12.30% for VTI.

Over three years, VLT compounded at +8.50% per year against +21.01% for VTI; over five years the annualized figures are +1.73% and +12.36% respectively. Across the full 25-year window we track, VTI has the edge at +8.03% annualized vs -2.51%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VLT has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -84.0% for VLT and -56.6% 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 0.59. They move together some of the time, and apart the rest.

Fees and Cost Over Time

VLT charges 1.95% per year while VTI charges 0.03%. On a $10,000 position that is $195 vs $3 annually, a gap of $192 per year that compounds over a long holding period. On income, VLT currently yields 10.38% against 1.03% for VTI.

You are not choosing between two funds in isolation.

Whichever of VLT and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VLTVTI

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, VLT or VTI?

VLT has an expense ratio of 1.95% while VTI charges 0.03%. VTI is the cheaper option, by $192 a year on a $10,000 investment.

Which performed better, VLT or VTI?

Over the past year VLT returned -7.25% vs +16.08% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), VLT annualized -2.51% vs +8.03% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VLT or VTI?

VLT has been the more volatile fund at 19.6% annualized versus 15.3% for VTI. Worst drawdown: VLT -84.0% vs VTI -56.6%.

Should I hold both VLT and VTI?

VLT and VTI have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, VLT or VTI?

VLT yields 10.38% while VTI yields 1.03%, so VLT currently pays the higher dividend yield.

Is VTI better than VLT?

VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.