VTI vs WDEF

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricVTIWDEFWinner
Expense Ratio0.03%0.45%
AUM$663.5B$95M
Dividend Yield1.07%0.08%
Holdings3,54338
YTD Return+14.96%+9.88%
1Y Return+22.39%+14.27%
3Y Return (annualized)+21.51%-
5Y Return (annualized)+12.36%-
Volatility (annualized)15.4%33.0%
Max Drawdown-56.6%-23.9%
Fund FamilyVanguard (US)WisdomTree Investments
CategoryEquityEquity
InceptionMay 24, 2001Jul 17, 2025

VTI vs WDEF Performance

Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and WisdomTree Europe Defense Fund ETF (WDEF) is a ETF from WisdomTree Investments. Over the past year VTI returned +22.39% while WDEF returned +14.27%. Year to date, VTI is up 14.96% versus a gain of 9.88% for WDEF.

Risk: Volatility and Drawdowns

WDEF has been the more volatile fund, with annualized monthly volatility of 33.0% compared with 15.4% 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 -23.9% for WDEF. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VTI charges 0.03% per year while WDEF charges 0.45%. On a $10,000 position that is $3 vs $45 annually, a gap of $42 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 0.08% for WDEF.

Holdings Overlap

0.0%overlap

VTI and WDEF share 0 holdings out of 2824 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, VTI or WDEF?

VTI has an expense ratio of 0.03% while WDEF charges 0.45%. VTI is the cheaper option. On a $10,000 investment, that is $42 per year of difference.

Which performed better, VTI or WDEF?

Over the past year VTI returned +22.39% vs +14.27% for WDEF, so VTI leads on 1-year performance. Over the longest common window we track (1 years), VTI annualized +8.16% vs +8.47% for WDEF. Past performance does not guarantee future results.

Which is riskier, VTI or WDEF?

WDEF has been the more volatile fund at 33.0% annualized versus 15.4% for VTI. Worst drawdown: VTI -56.6% vs WDEF -23.9%.

Should I hold both VTI and WDEF?

VTI and WDEF have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTI and WDEF?

VTI and WDEF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2824 unique securities.

Which pays a higher dividend, VTI or WDEF?

VTI yields 1.07% while WDEF yields 0.08%, so VTI currently pays the higher dividend yield.

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