VTI vs VTWO

VTI vs VTWO

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.

Lower Fees: VTIHigher Returns: split

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

MetricVTIVTWO
Expense Ratio0.03%Best0.06%
AUM$666.9B$17.5B
Dividend Yield1.03%1.10%
Holdings3,5432,015
YTD Return+14.05%+16.37%Best
1Y Return+16.93%+18.90%Best
3Y Return (annualized)+22.65%Best+19.14%
5Y Return (annualized)+12.46%Best+6.93%
Volatility (annualized)14.5%Best19.1%
Max Drawdown-35.0%Best-42.4%
$10,000 over 5 years$17,988Best$13,980
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendSmall Cap Blend
InceptionMay 24, 2001Sep 20, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2010 to Sep 22, 2026 (16 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 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 +16.93% while VTWO returned +18.90%. Year to date, VTI is up 14.05% versus a gain of 16.37% for VTWO.

Over three years, VTI compounded at +22.65% per year against +19.14% for VTWO; over five years the annualized figures are +12.46% and +6.93% respectively. Across the full 16-year window we track, VTI has the edge at +13.02% annualized vs +10.37%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% 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 1.03% against 1.10% for VTWO.

Holdings Overlap

VTI already in VTWO2.4%

At least 2.4% of VTI's money is in holdings VTWO also owns.

Stated as a floor: for VTWO, our book for it covers 89.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

VTI and VTWO share little of their money.

1,485 positions in common, counted across the 3,463 positions we hold weights for in VTI and 1,633 in VTWO, against full books of 3,543 and 2,015.

Top Shared Holdings

StockWeight in VTIWeight in VTWODifference
MOG.AMoog Inccommon Stock0.02%0.35%0.33%
UMBFUmb Financial Corp.0.01%0.34%0.33%
CYTKCytokinetics Inc0.01%0.32%0.31%
BTSGBrightspring Health0.01%0.31%0.30%
VSATViasat Inc0.01%0.31%0.30%
GKOSGlaukos Corp.0.01%0.30%0.29%
CTRECaretrust Reit Inc Reit Usd.010.01%0.30%0.29%
EATBrinker International, Inc.0.01%0.29%0.28%
ONBOld National Bancorp/In Common Stock0.01%0.29%0.28%
KRYSKrystal Biotech Inc0.01%0.28%0.27%

You are not choosing between two funds in isolation.

Whichever of VTI and VTWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VTIVTWO

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 +16.93% vs +18.90% for VTWO, so VTWO leads on 1-year performance. Over the longest common window we track (16 years), VTI annualized +13.02% vs +10.37% 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 19.1% 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?

At least 2.4% of VTI's money is in holdings VTWO also owns. Our book for VTWO is partial, so the real figure is this or higher. They hold 1,485 positions in common, counted across the 3,463 positions we hold weights for in VTI and 1,633 in VTWO.

Which pays a higher dividend, VTI or VTWO?

VTI yields 1.03% while VTWO yields 1.10%, 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. Which one suits a particular account depends on what it is for. This is information, not a recommendation.