VTI vs XAR
Vanguard Morningstar Total Stock Market ETF vs State Street SPDR S&P Aerospace & Defense ETF
Which is better, VTI or XAR?
Large Cap Blend against Mid Cap Growth.
VTI has a lower expense ratio. VTI led over 1Y, XAR over 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 | XAR |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.35% |
| AUM | $666.9B | $6.0B |
| Dividend Yield | 1.07% | 0.31% |
| Holdings | 3,543 | 48 |
| YTD Return | +12.95%Best | +1.21% |
| 1Y Return | +19.17%Best | +16.61% |
| 3Y Return (annualized) | +20.86% | +29.85%Best |
| 5Y Return (annualized) | +11.72% | +16.64%Best |
| Volatility (annualized) | 14.5%Best | 20.3% |
| Max Drawdown | -35.0%Best | -46.7% |
| $10,000 over 5 years | $17,404 | $21,589Best |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Growth |
| Inception | May 24, 2001 | Sep 28, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Sep 8, 2026 (14.9 years).
VTI vs XAR 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 14.9 years both funds cover.
VTI vs XAR Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and State Street SPDR S&P Aerospace & Defense ETF (XAR) is an ETF from State Street Investment Management. Over the past year VTI returned +19.17% while XAR returned +16.61%. Year to date, VTI is up 12.95% versus a gain of 1.21% for XAR.
Over three years, VTI compounded at +20.86% per year against +29.85% for XAR; over five years the annualized figures are +11.72% and +16.64% respectively. Across the full 15-year window we track, XAR has the edge at +16.93% annualized vs +13.78%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.5% 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 -35.0% for VTI and -46.7% for XAR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while XAR charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 0.31% for XAR.
Holdings Overlap
At least 96.0% of XAR's money is in holdings VTI also owns.
Stated as a floor: for VTI, our book for it covers 92.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of XAR is already inside VTI. Owning both mostly buys the same companies twice.
43 positions in common, counted across the 2,788 positions we hold weights for in VTI and 48 in XAR, against full books of 3,543 and 48.
What only one of them owns
Measured across the 2,788 and 48 positions we hold weights for.
VTI holds 661 positions XAR does not, 89.3% of the fund.
Largest: NVDA 6.32%, AAPL 5.84%, MSFT 3.81%, AMZN 3.17%, GOOGL 2.88%
Top Shared Holdings
| Stock | Weight in VTI | Weight in XAR | Difference |
|---|---|---|---|
| GEGeneral Electric Co. | 0.54% | 3.07% | 2.53% |
| AXONAxon Enterprise Inc | 0.06% | 3.52% | 3.46% |
| RTXRaytheon Co. | 0.35% | 3.19% | 2.84% |
| SAROStandardaero Inc | 0.01% | 3.21% | 3.20% |
| VSECVse Corp | 0.00% | 3.21% | 3.21% |
| BABoeing Co | 0.23% | 2.94% | 2.71% |
| HWMHowmet Aerospace Inc. | 0.15% | 3.00% | 2.85% |
| LMTLockheed Martin Corp | 0.16% | 2.91% | 2.75% |
| GDGeneral Dynamics Corp. | 0.12% | 2.93% | 2.81% |
| KRMNKarman Holdings Inc | 0.00% | 3.05% | 3.05% |
96.0% of XAR is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTI or XAR?
VTI has an expense ratio of 0.03% while XAR charges 0.35%. VTI is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, VTI or XAR?
Over the past year VTI returned +19.17% vs +16.61% for XAR, so VTI leads on 1-year performance. Over the longest common window we track (15 years), VTI annualized +13.78% vs +16.93% for XAR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTI or XAR?
XAR has been the more volatile fund at 20.3% annualized versus 14.5% for VTI. Worst drawdown: VTI -35.0% vs XAR -46.7%.
Should I hold both VTI and XAR?
VTI and XAR have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VTI and XAR?
At least 96.0% of XAR's money is in holdings VTI also owns. Our book for VTI is partial, so the real figure is this or higher. They hold 43 positions in common, counted across the 2,788 positions we hold weights for in VTI and 48 in XAR.
Which pays a higher dividend, VTI or XAR?
VTI yields 1.07% while XAR yields 0.31%, so VTI currently pays the higher dividend yield.
Is XAR better than VTI?
VTI has a lower expense ratio. VTI led over 1Y, XAR over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.