VTI vs XBI
Vanguard Morningstar Total Stock Market ETF vs State Street SPDR S&P Biotech ETF
Quick Verdict
VTI has a lower expense ratio. XBI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VTI | XBI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $666.9B | $10.6B | |
| Dividend Yield | 1.07% | 0.39% | |
| Holdings | 3,543 | 157 | |
| YTD Return | +13.14% | +36.51% | |
| 1Y Return | +22.35% | +85.15% | |
| 3Y Return (annualized) | +21.83% | +28.65% | |
| 5Y Return (annualized) | +12.01% | +5.48% | |
| Volatility (annualized) | 15.3% | 27.0% | |
| Max Drawdown | -56.6% | -63.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 24, 2001 | Jan 31, 2006 |
VTI vs XBI Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and State Street SPDR S&P Biotech ETF (XBI) is a ETF from State Street Investment Management. Over the past year VTI returned +22.35% while XBI returned +85.15%. Year to date, VTI is up 13.14% versus a gain of 36.51% for XBI.
Over three years, VTI compounded at +21.83% per year against +28.65% for XBI; over five years the annualized figures are +12.01% and +5.48% respectively. Across the full 21-year window we track, XBI has the edge at +11.95% annualized vs +8.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XBI has been the more volatile fund, with annualized monthly volatility of 27.0% 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 -63.9% for XBI. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while XBI 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 0.39% for XBI.
Holdings Overlap
VTI and XBI share 117 holdings out of 2823 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTI or XBI?
VTI has an expense ratio of 0.03% while XBI charges 0.35%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, VTI or XBI?
Over the past year VTI returned +22.35% vs +85.15% for XBI, so XBI leads on 1-year performance. Over the longest common window we track (21 years), VTI annualized +8.09% vs +11.95% for XBI. Past performance does not guarantee future results.
Which is riskier, VTI or XBI?
XBI has been the more volatile fund at 27.0% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs XBI -63.9%.
Should I hold both VTI and XBI?
VTI and XBI have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and XBI?
VTI and XBI share 117 common holdings with a 1.9% weight overlap. Combined, they hold 2823 unique securities.
Which pays a higher dividend, VTI or XBI?
VTI yields 1.07% while XBI yields 0.39%, so VTI currently pays the higher dividend yield.
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