VTI vs WEBS

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

MetricVTIWEBSWinner
Expense Ratio0.03%1.07%
AUM$663.5B$8M
Dividend Yield1.07%2.83%
Holdings3,5436
YTD Return+13.87%-30.77%
1Y Return+23.31%-29.05%
3Y Return (annualized)+21.17%-49.82%
5Y Return (annualized)+12.23%-36.27%
Volatility (annualized)15.3%65.5%
Max Drawdown-56.6%-99.7%
Fund FamilyVanguard (US)Direxion Shares ETF Trust
CategoryEquityAlternative
InceptionMay 24, 2001Nov 7, 2019

VTI vs WEBS Performance

Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Direxion Daily Dow Jones Internet Bear 3X ETF (WEBS) is a ETF from Direxion Shares ETF Trust. Over the past year VTI returned +23.31% while WEBS returned -29.05%. Year to date, VTI is up 13.87% versus a loss of 30.77% for WEBS.

Over three years, VTI compounded at +21.17% per year against -49.82% for WEBS; over five years the annualized figures are +12.23% and -36.27% respectively. Across the full 7-year window we track, VTI has the edge at +8.13% annualized vs -52.45%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

WEBS has been the more volatile fund, with annualized monthly volatility of 65.5% 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 -99.7% for WEBS. 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 -0.77. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VTI charges 0.03% per year while WEBS charges 1.07%. On a $10,000 position that is $3 vs $107 annually, a gap of $104 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 2.83% for WEBS.

Holdings Overlap

0.0%overlap

VTI and WEBS share 0 holdings out of 2785 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 WEBS?

VTI has an expense ratio of 0.03% while WEBS charges 1.07%. VTI is the cheaper option. On a $10,000 investment, that is $104 per year of difference.

Which performed better, VTI or WEBS?

Over the past year VTI returned +23.31% vs -29.05% for WEBS, so VTI leads on 1-year performance. Over the longest common window we track (7 years), VTI annualized +8.13% vs -52.45% for WEBS. Past performance does not guarantee future results.

Which is riskier, VTI or WEBS?

WEBS has been the more volatile fund at 65.5% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs WEBS -99.7%.

Should I hold both VTI and WEBS?

VTI and WEBS have a monthly-return correlation of -0.77, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTI and WEBS?

VTI and WEBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2785 unique securities.

Which pays a higher dividend, VTI or WEBS?

VTI yields 1.07% while WEBS yields 2.83%, so WEBS currently pays the higher dividend yield.

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