VTI vs VTWO
Vanguard Morningstar Total Stock Market ETF vs Vanguard Russell 2000 ETF
Which is better, VTI or VTWO?
Large Cap Blend against Small Cap Blend.
VTI has a lower expense ratio. VTI led over 3Y, 5Y and the full window, VTWO over 1Y. The two have moved almost in lockstep, correlation 0.90. VTWO is less concentrated, with 3.3% of the fund in its ten largest positions against 34.6%.
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 | VTI | VTWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $689.2B | $17.5B |
| Dividend Yield | 1.06% | 1.18% |
| Holdings | 3,542 | 2,006 |
| YTD Return | +12.23% | +14.70%Best |
| 1Y Return | +12.74% | +17.26%Best |
| 3Y Return (annualized) | +21.44%Best | +20.29% |
| 5Y Return (annualized) | +10.83%Best | +4.88% |
| Volatility (annualized) | 14.5%Best | 19.0% |
| Max Drawdown | -35.0%Best | -42.4% |
| $10,000 over 5 years | $16,722Best | $12,690 |
| Top 10 Weight | 34.6% | 3.3%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Small Cap Blend |
| Inception | May 24, 2001 | Sep 20, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2010 to Nov 11, 2026 (16.1 years).
VTI vs VTWO 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 16.1 years both funds cover.
VTI vs VTWO Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and Vanguard Russell 2000 ETF (VTWO) is an ETF from Vanguard (US). Over the past year VTI returned +12.74% while VTWO returned +17.26%. Year to date, VTI is up 12.23% versus a gain of 14.70% for VTWO.
Over three years, VTI compounded at +21.44% per year against +20.29% for VTWO; over five years the annualized figures are +10.83% and +4.88% respectively. Across the full 16-year window we track, VTI has the edge at +12.79% annualized vs +10.17%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 14.5% for VTI. 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 -35.0% for VTI and -42.4% for VTWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTI charges 0.03% per year while VTWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VTI currently yields 1.06% against 1.18% for VTWO.
Holdings Overlap
2.3% of VTI's money is in holdings VTWO also owns. 91.5% of VTWO's money is in holdings VTI also owns.
Most of VTWO is already inside VTI. Owning both mostly buys the same companies twice.
1,840 positions in common, counted across the 3,464 positions we hold weights for in VTI and 1,990 in VTWO, against full books of 3,542 and 2,006.
What only one of them owns
Our book lists 63 positions for VTWO that do not appear in our book for VTI (2.9% of the fund), and 909 for VTI that do not appear in VTWO (94.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VTI | Weight in VTWO | Difference |
|---|---|---|---|
| TWSTTwist Bioscience Corp. | 0.02% | 0.42% | 0.40% |
| MOG.AMoog Inccommon Stock | 0.01% | 0.36% | 0.35% |
| TXG10x Genomics Inc Com Usd 1 Cl A | 0.01% | 0.35% | 0.34% |
| FROGJfrog Ltd | 0.01% | 0.35% | 0.34% |
| UMBFUmb Financial Corp. | 0.01% | 0.32% | 0.31% |
| GKOSGlaukos Corp. | 0.01% | 0.31% | 0.30% |
| BTSGBrightspring Health | 0.01% | 0.31% | 0.30% |
| VSATViasat Inc | 0.01% | 0.30% | 0.29% |
| CTRECaretrust Reit Inc Reit Usd.01 | 0.01% | 0.29% | 0.28% |
| KRYSKrystal Biotech Inc | 0.01% | 0.29% | 0.28% |
91.5% of VTWO is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTI or VTWO?
VTI has an expense ratio of 0.03% while VTWO charges 0.06%. VTI is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VTI or VTWO?
Over the past year VTI returned +12.74% vs +17.26% for VTWO, so VTWO leads on 1-year performance. Over the longest common window we track (16 years), VTI annualized +12.79% vs +10.17% for VTWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTI or VTWO?
VTWO has been the more volatile fund at 19.0% annualized versus 14.5% for VTI. Worst drawdown: VTI -35.0% vs VTWO -42.4%.
Should I hold both VTI and VTWO?
VTI and VTWO have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VTI and VTWO?
91.5% of VTWO's money is in holdings VTI also owns. 91.5% of VTWO's is in holdings VTI also owns. They hold 1,840 positions in common, counted across the 3,464 positions we hold weights for in VTI and 1,990 in VTWO.
Which pays a higher dividend, VTI or VTWO?
VTI yields 1.06% while VTWO yields 1.18%, so VTWO currently pays the higher dividend yield.
Is VTWO better than VTI?
VTI has a lower expense ratio. VTI led over 3Y, 5Y and the full window, VTWO over 1Y. The two have moved almost in lockstep, correlation 0.90. VTWO is less concentrated, with 3.3% of the fund in its ten largest positions against 34.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.