VTI vs ZROZ
Vanguard Morningstar Total Stock Market ETF vs PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VTI | ZROZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.15% | |
| AUM | $666.9B | $1.4B | |
| Dividend Yield | 1.07% | 5.52% | |
| Holdings | 3,543 | 23 | |
| YTD Return | +13.14% | -6.97% | |
| 1Y Return | +22.35% | -4.97% | |
| 3Y Return (annualized) | +21.83% | -5.56% | |
| 5Y Return (annualized) | +12.01% | -14.69% | |
| Volatility (annualized) | 15.3% | 21.7% | |
| Max Drawdown | -56.6% | -63.7% | |
| Fund Family | Vanguard (US) | PIMCO (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 24, 2001 | Oct 30, 2009 |
VTI vs ZROZ Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) is a ETF from PIMCO (US). Over the past year VTI returned +22.35% while ZROZ returned -4.97%. Year to date, VTI is up 13.14% versus a loss of 6.97% for ZROZ.
Over three years, VTI compounded at +21.83% per year against -5.56% for ZROZ; over five years the annualized figures are +12.01% and -14.69% respectively. Across the full 17-year window we track, VTI has the edge at +8.09% annualized vs -0.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ZROZ has been the more volatile fund, with annualized monthly volatility of 21.7% 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 -63.7% for ZROZ. 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 -0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while ZROZ charges 0.15%. On a $10,000 position that is $3 vs $15 annually, a gap of $12 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 5.52% for ZROZ.
Holdings Overlap
VTI and ZROZ share 0 holdings out of 2805 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 ZROZ?
VTI has an expense ratio of 0.03% while ZROZ charges 0.15%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, VTI or ZROZ?
Over the past year VTI returned +22.35% vs -4.97% for ZROZ, so VTI leads on 1-year performance. Over the longest common window we track (17 years), VTI annualized +8.09% vs -0.31% for ZROZ. Past performance does not guarantee future results.
Which is riskier, VTI or ZROZ?
ZROZ has been the more volatile fund at 21.7% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs ZROZ -63.7%.
Should I hold both VTI and ZROZ?
VTI and ZROZ have a monthly-return correlation of -0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and ZROZ?
VTI and ZROZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2805 unique securities.
Which pays a higher dividend, VTI or ZROZ?
VTI yields 1.07% while ZROZ yields 5.52%, so ZROZ currently pays the higher dividend yield.
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