VTI vs WEA
Vanguard Morningstar Total Stock Market ETF vs Western Asset Premier Bond Fund
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 | WEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.22% | |
| AUM | $666.9B | $133M | |
| Dividend Yield | 1.07% | 7.58% | |
| Holdings | 3,543 | 386 | |
| YTD Return | +13.14% | -1.99% | |
| 1Y Return | +22.35% | +2.82% | |
| 3Y Return (annualized) | +21.83% | +7.42% | |
| 5Y Return (annualized) | +12.01% | +0.58% | |
| Volatility (annualized) | 15.3% | 15.7% | |
| Max Drawdown | -56.6% | -64.9% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 24, 2001 | Mar 28, 2002 |
VTI vs WEA Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Western Asset Premier Bond Fund (WEA) is a ETF from Franklin Templeton Investments (US). Over the past year VTI returned +22.35% while WEA returned +2.82%. Year to date, VTI is up 13.14% versus a loss of 1.99% for WEA.
Over three years, VTI compounded at +21.83% per year against +7.42% for WEA; over five years the annualized figures are +12.01% and +0.58% respectively. Across the full 24-year window we track, VTI has the edge at +8.09% annualized vs +0.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEA has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -64.9% for WEA. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while WEA charges 1.22%. On a $10,000 position that is $3 vs $122 annually, a gap of $119 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 7.58% for WEA.
Holdings Overlap
VTI and WEA share 1 holdings out of 3032 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTI | Weight in WEA | Difference |
|---|---|---|---|
| C | 0.32% | 0.14% | 0.18% |
Frequently Asked Questions
Which is cheaper, VTI or WEA?
VTI has an expense ratio of 0.03% while WEA charges 1.22%. VTI is the cheaper option. On a $10,000 investment, that is $119 per year of difference.
Which performed better, VTI or WEA?
Over the past year VTI returned +22.35% vs +2.82% for WEA, so VTI leads on 1-year performance. Over the longest common window we track (24 years), VTI annualized +8.09% vs +0.14% for WEA. Past performance does not guarantee future results.
Which is riskier, VTI or WEA?
WEA has been the more volatile fund at 15.7% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs WEA -64.9%.
Should I hold both VTI and WEA?
VTI and WEA have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and WEA?
VTI and WEA share 1 common holdings with a 0.1% weight overlap. Combined, they hold 3032 unique securities.
Which pays a higher dividend, VTI or WEA?
VTI yields 1.07% while WEA yields 7.58%, so WEA currently pays the higher dividend yield.
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