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. XAR is less concentrated, with 31.4% of the fund in its ten largest positions against 33.3%.
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 | $690.1B | $5.6B |
| Dividend Yield | 1.03% | 0.31% |
| Holdings | 3,524 | 48 |
| YTD Return | +13.35%Best | -6.80% |
| 1Y Return | +15.92%Best | -1.94% |
| 3Y Return (annualized) | +23.41% | +29.07%Best |
| 5Y Return (annualized) | +12.83% | +14.59%Best |
| Volatility (annualized) | 14.5%Best | 20.4% |
| Max Drawdown | -35.0%Best | -46.7% |
| $10,000 over 5 years | $18,286 | $19,758Best |
| Top 10 Weight | 33.3% | 31.4%Best |
| 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 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Oct 2, 2026 (15 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 15 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 +15.92% while XAR returned -1.94%. Year to date, VTI is up 13.35% versus a loss of 6.80% for XAR.
Over three years, VTI compounded at +23.41% per year against +29.07% for XAR; over five years the annualized figures are +12.83% and +14.59% respectively. Across the full 15-year window we track, XAR has the edge at +16.21% annualized vs +13.75%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.4% 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 1.03% against 0.31% for XAR.
Holdings Overlap
2.4% of VTI's money is in holdings XAR also owns. 99.9% of XAR's money is in holdings VTI also owns.
Most of XAR is already inside VTI. Owning both mostly buys the same companies twice.
47 positions in common, counted across the 3,463 positions we hold weights for in VTI and 48 in XAR, against full books of 3,524 and 48.
What only one of them owns
Measured across the 3,463 and 48 positions we hold weights for.
VTI holds 1,120 positions XAR does not, 95.0% of the fund.
Largest: NVDA 6.40%, AAPL 6.29%, MSFT 4.79%, AMZN 3.65%, GOOGL 2.90%
Top Shared Holdings
| Stock | Weight in VTI | Weight in XAR | Difference |
|---|---|---|---|
| RTXRaytheon Co. | 0.40% | 3.31% | 2.91% |
| GEGeneral Electric Co. | 0.52% | 3.02% | 2.50% |
| VSECVse Corp | 0.01% | 3.35% | 3.34% |
| ACHRArcher Aviation Inc | 0.00% | 3.28% | 3.28% |
| ATIAti Inc | 0.04% | 3.22% | 3.18% |
| GDGeneral Dynamics Corp. | 0.14% | 3.10% | 2.96% |
| AXONAxon Enterprise Inc | 0.06% | 3.18% | 3.12% |
| BABoeing Co | 0.24% | 2.99% | 2.75% |
| LMTLockheed Martin Corp | 0.19% | 2.97% | 2.78% |
| HXLHexcel Corp | 0.01% | 3.01% | 3.00% |
99.9% 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 +15.92% vs -1.94% for XAR, so VTI leads on 1-year performance. Over the longest common window we track (15 years), VTI annualized +13.75% vs +16.21% 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 20.4% 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?
99.9% of XAR's money is in holdings VTI also owns. 99.9% of XAR's is in holdings VTI also owns. They hold 47 positions in common, counted across the 3,463 positions we hold weights for in VTI and 48 in XAR.
Which pays a higher dividend, VTI or XAR?
VTI yields 1.03% 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. XAR is less concentrated, with 31.4% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.