VTI vs WDI
Vanguard Morningstar Total Stock Market ETF vs Western Asset Diversified Income Fund
Which is better, VTI or WDI?
Large Cap Blend against Diversified Sectoral Bond.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
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 | WDI |
|---|---|---|
| Expense Ratio | 0.03%Best | 1.82% |
| AUM | $666.9B | $722M |
| Dividend Yield | 1.03% | 12.77% |
| Holdings | 3,543 | 410 |
| YTD Return | +12.57%Best | -2.29% |
| 1Y Return | +17.22%Best | -7.16% |
| 3Y Return (annualized) | +20.87%Best | +9.48% |
| 5Y Return (annualized) | +11.86%Best | +1.91% |
| Volatility (annualized) | 15.8% | 13.9%Best |
| Max Drawdown | -25.4%Best | -32.5% |
| $10,000 over 5 years | $17,514Best | $10,992 |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Diversified Sectoral Bond |
| Inception | May 24, 2001 | Jun 24, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2021 to Sep 11, 2026 (5.2 years).
VTI vs WDI 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 5.2 years both funds cover.
VTI vs WDI Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and Western Asset Diversified Income Fund (WDI) is an ETF from Franklin Templeton Investments (US). Over the past year VTI returned +17.22% while WDI returned -7.16%. Year to date, VTI is up 12.57% versus a loss of 2.29% for WDI.
Over three years, VTI compounded at +20.87% per year against +9.48% for WDI; over five years the annualized figures are +11.86% and +1.91% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 13.9% for WDI. 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 -25.4% for VTI and -32.5% for WDI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while WDI charges 1.82%. On a $10,000 position that is $3 vs $182 annually, a gap of $179 per year that compounds over a long holding period. On income, VTI currently yields 1.03% against 12.77% for WDI.
Holdings Overlap
We hold position weights for 2,787 holdings in VTI and 192 in WDI, totalling 90.6% and 79.1% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
The two holdings books were reported 181 days apart, VTI as of Jun 30, 2026 and WDI as of Dec 31, 2025, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 2,787 positions we hold weights for in VTI and 192 in WDI, against full books of 3,543 and 410.
Top Shared Holdings
| Stock | Weight in VTI | Weight in WDI | Difference |
|---|---|---|---|
| WWWw International Inc | 0.00% | 0.08% | 0.08% |
You are not choosing between two funds in isolation.
Whichever of VTI and WDI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTI or WDI?
VTI has an expense ratio of 0.03% while WDI charges 1.82%. VTI is the cheaper option, by $179 a year on a $10,000 investment.
Which performed better, VTI or WDI?
Over the past year VTI returned +17.22% vs -7.16% for WDI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTI or WDI?
VTI has been the more volatile fund at 15.8% annualized versus 13.9% for WDI. Worst drawdown: VTI -25.4% vs WDI -32.5%.
Should I hold both VTI and WDI?
VTI and WDI have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTI or WDI?
VTI yields 1.03% while WDI yields 12.77%, so WDI currently pays the higher dividend yield.
Is WDI better than VTI?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.