VTES vs VTI
Vanguard Short-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 3,543 holdings.
Side-by-Side Comparison
| Metric | VTES | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $2.1B | $663.5B | |
| Dividend Yield | 2.74% | 1.07% | |
| Holdings | 3,067 | 3,543 | |
| YTD Return | +0.69% | +14.96% | |
| 1Y Return | +1.86% | +22.39% | |
| 3Y Return (annualized) | +3.05% | +21.51% | |
| 5Y Return (annualized) | - | +12.36% | |
| Volatility (annualized) | 2.3% | 15.4% | |
| Max Drawdown | -2.4% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 7, 2023 | May 24, 2001 |
VTES vs VTI Performance
Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VTES returned +1.86% while VTI returned +22.39%. Year to date, VTES is up 0.69% versus a gain of 14.96% for VTI.
Over three years, VTES compounded at +3.05% per year against +21.51% for VTI. Across the full 3-year window we track, VTI has the edge at +8.16% annualized vs +2.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 2.3% for VTES. 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 -2.4% for VTES 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTES charges 0.05% per year while VTI charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VTES currently yields 2.74% against 1.07% for VTI.
Holdings Overlap
VTES and VTI share 0 holdings out of 3814 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, VTES or VTI?
VTES has an expense ratio of 0.05% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VTES or VTI?
Over the past year VTES returned +1.86% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), VTES annualized +2.86% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, VTES or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 2.3% for VTES. Worst drawdown: VTES -2.4% vs VTI -56.6%.
Should I hold both VTES and VTI?
VTES and VTI have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTES and VTI?
VTES and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3814 unique securities.
Which pays a higher dividend, VTES or VTI?
VTES yields 2.74% while VTI yields 1.07%, so VTES currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.