VSDM vs VTI
Vanguard Short Duration Tax-Exempt Bond 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 | VSDM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $763M | $663.5B | |
| Dividend Yield | 3.10% | 1.07% | |
| Holdings | 3,774 | 3,543 | |
| YTD Return | -0.21% | +14.96% | |
| 1Y Return | +1.40% | +22.39% | |
| 3Y Return (annualized) | - | +21.51% | |
| 5Y Return (annualized) | - | +12.36% | |
| Volatility (annualized) | 2.1% | 15.4% | |
| Max Drawdown | -2.0% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 2024 | May 24, 2001 |
VSDM vs VTI Performance
Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VSDM returned +1.40% while VTI returned +22.39%. Year to date, VSDM is down 0.21% versus a gain of 14.96% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 2.1% for VSDM. 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 -2.0% for VSDM 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VSDM charges 0.12% per year while VTI charges 0.03%. On a $10,000 position that is $12 vs $3 annually, a gap of $9 per year that compounds over a long holding period. On income, VSDM currently yields 3.10% against 1.07% for VTI.
Holdings Overlap
VSDM and VTI share 0 holdings out of 3207 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, VSDM or VTI?
VSDM has an expense ratio of 0.12% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, VSDM or VTI?
Over the past year VSDM returned +1.40% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), VSDM annualized +3.47% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, VSDM or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 2.1% for VSDM. Worst drawdown: VSDM -2.0% vs VTI -56.6%.
Should I hold both VSDM and VTI?
VSDM and VTI have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VSDM and VTI?
VSDM and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3207 unique securities.
Which pays a higher dividend, VSDM or VTI?
VSDM yields 3.10% while VTI yields 1.07%, so VSDM currently pays the higher dividend yield.
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