VMO vs VTI
Invesco Municipal Opportunity Trust vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VMO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.86% | 0.03% | |
| AUM | $2,934.54 | $663.5B | |
| Dividend Yield | 7.43% | 1.07% | |
| Holdings | 544 | 3,543 | |
| YTD Return | +6.43% | +14.16% | |
| 1Y Return | +14.13% | +23.62% | |
| 3Y Return (annualized) | +8.75% | +21.43% | |
| 5Y Return (annualized) | -0.75% | +12.33% | |
| Volatility (annualized) | 12.2% | 15.3% | |
| Max Drawdown | -60.0% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 24, 1992 | May 24, 2001 |
VMO vs VTI Performance
Invesco Municipal Opportunity Trust (VMO) is a ETF from Invesco (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VMO returned +14.13% while VTI returned +23.62%. Year to date, VMO is up 6.43% versus a gain of 14.16% for VTI.
Over three years, VMO compounded at +8.75% per year against +21.43% for VTI; over five years the annualized figures are -0.75% and +12.33% respectively. Across the full 25-year window we track, VTI has the edge at +8.14% annualized vs -0.07%. 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 12.2% for VMO. 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 -60.0% for VMO 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMO charges 1.86% per year while VTI charges 0.03%. On a $10,000 position that is $186 vs $3 annually, a gap of $183 per year that compounds over a long holding period. On income, VMO currently yields 7.43% against 1.07% for VTI.
Holdings Overlap
VMO and VTI share 0 holdings out of 3056 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, VMO or VTI?
VMO has an expense ratio of 1.86% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $183 per year of difference.
Which performed better, VMO or VTI?
Over the past year VMO returned +14.13% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), VMO annualized -0.07% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, VMO or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.2% for VMO. Worst drawdown: VMO -60.0% vs VTI -56.6%.
Should I hold both VMO and VTI?
VMO and VTI have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMO and VTI?
VMO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3056 unique securities.
Which pays a higher dividend, VMO or VTI?
VMO yields 7.43% while VTI yields 1.07%, so VMO currently pays the higher dividend yield.
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