VRP vs VTI
Invesco Variable Rate Preferred ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, VRP or VTI?
Preferred Stock against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
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 | VRP | VTI |
|---|---|---|
| Expense Ratio | 0.50% | 0.03%Best |
| AUM | $3.0B | $666.9B |
| Dividend Yield | 6.19% | 1.07% |
| Holdings | 343 | 3,543 |
| YTD Return | +2.27% | +13.59%Best |
| 1Y Return | +4.45% | +20.00%Best |
| 3Y Return (annualized) | +8.81% | +20.95%Best |
| 5Y Return (annualized) | +4.09% | +11.81%Best |
| Volatility (annualized) | 7.4%Best | 15.1% |
| Max Drawdown | -46.2% | -35.0%Best |
| $10,000 over 5 years | $12,219 | $17,474Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | May 1, 2014 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 1, 2014 to Sep 4, 2026 (12.3 years).
VRP 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 covers the 12.3 years both funds cover.
VRP vs VTI Performance
Invesco Variable Rate Preferred ETF (VRP) is an ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VRP returned +4.45% while VTI returned +20.00%. Year to date, VRP is up 2.27% versus a gain of 13.59% for VTI.
Over three years, VRP compounded at +8.81% per year against +20.95% for VTI; over five years the annualized figures are +4.09% and +11.81% respectively. Across the full 12-year window we track, VTI has the edge at +12.33% 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 15.1% 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 -35.0% 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 0.74. 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 6.19% against 1.07% for VTI.
Holdings Overlap
We hold position weights for 270 holdings in VRP and 2,787 in VTI, totalling 74.3% and 92.3% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 50 positions appear in both.
50 positions in common, counted across the 270 positions we hold weights for in VRP and 2,787 in VTI, against full books of 343 and 3,543.
Top Shared Holdings
| Stock | Weight in VRP | Weight in VTI | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.07% | 1.11% | 0.04% |
| BACBank of America Corp.: Financials | 1.08% | 0.50% | 0.58% |
| WFCWells Fargo & Co. | 0.79% | 0.35% | 0.44% |
| CVSCvs Health Corp. | 0.83% | 0.18% | 0.65% |
| VZVerizon Communic | 0.70% | 0.22% | 0.48% |
| AXPAmerican Express Co. | 0.56% | 0.25% | 0.31% |
| SOSouthern Co. | 0.65% | 0.15% | 0.50% |
| NEENextera Energy Inc | 0.52% | 0.25% | 0.27% |
| CCitigroup Inc 6.875 11/73 6.88 2173-11-15 | 0.36% | 0.32% | 0.04% |
| GSGoldman Sachs Group, Inc. (The), Series V | 0.27% | 0.39% | 0.12% |
You are not choosing between two funds in isolation.
Whichever of VRP 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, VRP or VTI?
VRP has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, VRP or VTI?
Over the past year VRP returned +4.45% vs +20.00% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), VRP annualized +2.30% vs +12.33% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VRP or VTI?
VTI has been the more volatile fund at 15.1% annualized versus 7.4% for VRP. Worst drawdown: VRP -46.2% vs VTI -35.0%.
Should I hold both VRP and VTI?
VRP and VTI have a monthly-return correlation of 0.74, 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, VRP or VTI?
VRP yields 6.19% while VTI yields 1.07%, so VRP currently pays the higher dividend yield.
Is VTI better than VRP?
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.