VTEI vs VTI
Vanguard Intermediate-Term 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 | VTEI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.03% | |
| AUM | $1.5B | $663.5B | |
| Dividend Yield | 3.04% | 1.07% | |
| Holdings | 10,147 | 3,543 | |
| YTD Return | -1.21% | +14.96% | |
| 1Y Return | +2.17% | +22.39% | |
| 3Y Return (annualized) | - | +21.51% | |
| 5Y Return (annualized) | - | +12.36% | |
| Volatility (annualized) | 3.4% | 15.4% | |
| Max Drawdown | -3.6% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 26, 2024 | May 24, 2001 |
VTEI vs VTI Performance
Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VTEI returned +2.17% while VTI returned +22.39%. Year to date, VTEI is down 1.21% 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 3.4% for VTEI. 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 -3.6% for VTEI 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTEI charges 0.08% per year while VTI charges 0.03%. On a $10,000 position that is $8 vs $3 annually, a gap of $5 per year that compounds over a long holding period. On income, VTEI currently yields 3.04% against 1.07% for VTI.
Holdings Overlap
VTEI and VTI share 0 holdings out of 4551 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, VTEI or VTI?
VTEI has an expense ratio of 0.08% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTEI or VTI?
Over the past year VTEI returned +2.17% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), VTEI annualized +1.94% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, VTEI or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 3.4% for VTEI. Worst drawdown: VTEI -3.6% vs VTI -56.6%.
Should I hold both VTEI and VTI?
VTEI and VTI have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTEI and VTI?
VTEI and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4551 unique securities.
Which pays a higher dividend, VTEI or VTI?
VTEI yields 3.04% while VTI yields 1.07%, so VTEI currently pays the higher dividend yield.
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