VMFXX vs VTI
Vanguard Federal Money Market Fund Investor Class vs Vanguard Morningstar Total Stock Market ETF
Which is better, VMFXX or VTI?
VTI costs less.
VTI has a lower expense ratio.
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 | VMFXX | VTI |
|---|---|---|
| Expense Ratio | 0.11% | 0.03%Best |
| AUM | $374.1B | $666.9B |
| Dividend Yield | 3.41% | 1.03% |
| Holdings | 320 | 3,543 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Money Market | Equity |
| Style | - | Large Cap Blend |
| Inception | Jul 13, 1981 | May 24, 2001 |
Not shown on this pair: YTD Price Return, 1Y Price Return, 3Y Price Return (annualized), 5Y Price Return (annualized), Volatility (annualized), Max Drawdown, $10,000 over the window, Top 10 Weight.
The two price series end 1627 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. VMFXX has data through Mar 29, 2022 and VTI through Sep 11, 2026.
Fees and Cost Over Time
VMFXX charges 0.11% per year while VTI charges 0.03%. On a $10,000 position that is $11 vs $3 annually, a gap of $8 per year that compounds over a long holding period. On income, VMFXX currently yields 3.41% against 1.03% for VTI.
Structure and taxes
VMFXX 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
We hold position weights for 5 holdings in VMFXX and 2,787 in VTI, totalling 1.4% and 90.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 5 positions we hold weights for in VMFXX and 2,787 in VTI, against full books of 320 and 3,543.
You are not choosing between two funds in isolation.
Whichever of VMFXX and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VMFXX or VTI?
VMFXX has an expense ratio of 0.11% while VTI charges 0.03%. VTI is the cheaper option, by $8 a year on a $10,000 investment.
Which pays a higher dividend, VMFXX or VTI?
VMFXX yields 3.41% while VTI yields 1.03%, so VMFXX currently pays the higher dividend yield.
Is it better to hold VMFXX or VTI in a taxable account?
VTI is an ETF and VMFXX 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 VMFXX?
VTI has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.