VTI vs WBND
Vanguard Morningstar Total Stock Market ETF vs Western Asset Total Return 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 | VTI | WBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.65% | |
| AUM | $666.9B | $10M | |
| Dividend Yield | 1.07% | 4.06% | |
| Holdings | 3,543 | 512 | |
| YTD Return | +12.65% | +4.40% | |
| 1Y Return | +21.39% | +1.11% | |
| 3Y Return (annualized) | +21.54% | +1.75% | |
| 5Y Return (annualized) | +12.11% | -2.98% | |
| Volatility (annualized) | 15.3% | 142.2% | |
| Max Drawdown | -56.6% | -81.5% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 24, 2001 | Oct 3, 2018 |
VTI vs WBND Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Western Asset Total Return ETF (WBND) is a ETF from Franklin Templeton Investments (US). Over the past year VTI returned +21.39% while WBND returned +1.11%. Year to date, VTI is up 12.65% versus a gain of 4.40% for WBND.
Over three years, VTI compounded at +21.54% per year against +1.75% for WBND; over five years the annualized figures are +12.11% and -2.98% respectively. Across the full 7-year window we track, VTI has the edge at +8.07% annualized vs +0.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WBND has been the more volatile fund, with annualized monthly volatility of 142.2% compared with 15.3% 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 -56.6% for VTI and -81.5% for WBND. 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while WBND charges 0.65%. On a $10,000 position that is $3 vs $65 annually, a gap of $62 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 4.06% for WBND.
Frequently Asked Questions
Which is cheaper, VTI or WBND?
VTI has an expense ratio of 0.03% while WBND charges 0.65%. VTI is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, VTI or WBND?
Over the past year VTI returned +21.39% vs +1.11% for WBND, so VTI leads on 1-year performance. Over the longest common window we track (7 years), VTI annualized +8.07% vs +0.85% for WBND. Past performance does not guarantee future results.
Which is riskier, VTI or WBND?
WBND has been the more volatile fund at 142.2% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs WBND -81.5%.
Should I hold both VTI and WBND?
VTI and WBND have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VTI or WBND?
VTI yields 1.07% while WBND yields 4.06%, so WBND currently pays the higher dividend yield.
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