VRP vs VTI
Invesco Variable Rate Preferred ETF 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 | VRP | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $3.0B | $663.5B | |
| Dividend Yield | 6.23% | 1.07% | |
| Holdings | 343 | 3,543 | |
| YTD Return | +2.02% | +13.87% | |
| 1Y Return | +4.79% | +23.31% | |
| 3Y Return (annualized) | +8.58% | +21.17% | |
| 5Y Return (annualized) | +4.10% | +12.23% | |
| Volatility (annualized) | 7.4% | 15.3% | |
| Max Drawdown | -46.2% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | May 1, 2014 | May 24, 2001 |
VRP vs VTI Performance
Invesco Variable Rate Preferred ETF (VRP) is a ETF from Invesco (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VRP returned +4.79% while VTI returned +23.31%. Year to date, VRP is up 2.02% versus a gain of 13.87% for VTI.
Over three years, VRP compounded at +8.58% per year against +21.17% for VTI; over five years the annualized figures are +4.10% and +12.23% respectively. Across the full 12-year window we track, VTI has the edge at +8.13% annualized vs +2.30%. 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 7.4% for VRP. 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 -46.2% for VRP 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VRP charges 0.50% per year while VTI charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, VRP currently yields 6.23% against 1.07% for VTI.
Holdings Overlap
VRP and VTI share 42 holdings out of 3019 unique holdings combined, representing a 4.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VRP or VTI?
VRP has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, VRP or VTI?
Over the past year VRP returned +4.79% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), VRP annualized +2.30% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, VRP or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 7.4% for VRP. Worst drawdown: VRP -46.2% vs VTI -56.6%.
Should I hold both VRP and VTI?
VRP and VTI have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VRP and VTI?
VRP and VTI share 42 common holdings with a 4.1% weight overlap. Combined, they hold 3019 unique securities.
Which pays a higher dividend, VRP or VTI?
VRP yields 6.23% while VTI yields 1.07%, so VRP currently pays the higher dividend yield.
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