VTI vs XC

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

MetricVTIXCWinner
Expense Ratio0.03%0.32%
AUM$663.5B$79M
Dividend Yield1.07%12.29%
Holdings3,543502
YTD Return+13.87%-0.27%
1Y Return+23.31%+6.94%
3Y Return (annualized)+21.17%+10.82%
5Y Return (annualized)+12.23%-
Volatility (annualized)15.3%13.9%
Max Drawdown-56.6%-21.0%
Fund FamilyVanguard (US)WisdomTree Investments
CategoryEquityEquity
InceptionMay 24, 2001Sep 20, 2022

VTI vs XC Performance

Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and WisdomTree True Emerging Markets Fund (XC) is a ETF from WisdomTree Investments. Over the past year VTI returned +23.31% while XC returned +6.94%. Year to date, VTI is up 13.87% versus a loss of 0.27% for XC.

Over three years, VTI compounded at +21.17% per year against +10.82% for XC. Across the full 4-year window we track, XC has the edge at +11.56% annualized vs +8.13%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.9% for XC. 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 -21.0% for XC. 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VTI charges 0.03% per year while XC charges 0.32%. On a $10,000 position that is $3 vs $32 annually, a gap of $29 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 12.29% for XC.

Holdings Overlap

0.0%overlap

VTI and XC share 2 holdings out of 3267 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VTIWeight in XCDifference
PG0.47%0.01%0.46%
AFYON0.00%0.00%0.00%

Frequently Asked Questions

Which is cheaper, VTI or XC?

VTI has an expense ratio of 0.03% while XC charges 0.32%. VTI is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, VTI or XC?

Over the past year VTI returned +23.31% vs +6.94% for XC, so VTI leads on 1-year performance. Over the longest common window we track (4 years), VTI annualized +8.13% vs +11.56% for XC. Past performance does not guarantee future results.

Which is riskier, VTI or XC?

VTI has been the more volatile fund at 15.3% annualized versus 13.9% for XC. Worst drawdown: VTI -56.6% vs XC -21.0%.

Should I hold both VTI and XC?

VTI and XC have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTI and XC?

VTI and XC share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3267 unique securities.

Which pays a higher dividend, VTI or XC?

VTI yields 1.07% while XC yields 12.29%, so XC currently pays the higher dividend yield.

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