VTI vs ZSEP
Vanguard Morningstar Total Stock Market ETF vs Innovator Equity Defined Protection ETF - 1 Yr September
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 | ZSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.79% | |
| AUM | $666.9B | $123M | |
| Dividend Yield | 1.07% | 0.00% | |
| Holdings | 3,543 | 5 | |
| YTD Return | +12.79% | +3.75% | |
| 1Y Return | +20.47% | +5.92% | |
| 3Y Return (annualized) | +21.53% | - | |
| 5Y Return (annualized) | +11.84% | - | |
| Volatility (annualized) | 15.3% | 2.7% | |
| Max Drawdown | -56.6% | -4.0% | |
| Fund Family | Vanguard (US) | Innovator ETFs Trust | |
| Category | Equity | Alternative | |
| Inception | May 24, 2001 | Aug 31, 2024 |
VTI vs ZSEP Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) is a ETF from Innovator ETFs Trust. Over the past year VTI returned +20.47% while ZSEP returned +5.92%. Year to date, VTI is up 12.79% versus a gain of 3.75% for ZSEP.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.7% for ZSEP. 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 -4.0% for ZSEP. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTI charges 0.03% per year while ZSEP charges 0.79%. On a $10,000 position that is $3 vs $79 annually, a gap of $76 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 0.00% for ZSEP.
Frequently Asked Questions
Which is cheaper, VTI or ZSEP?
VTI has an expense ratio of 0.03% while ZSEP charges 0.79%. VTI is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, VTI or ZSEP?
Over the past year VTI returned +20.47% vs +5.92% for ZSEP, so VTI leads on 1-year performance. Over the longest common window we track (2 years), VTI annualized +8.07% vs +6.53% for ZSEP. Past performance does not guarantee future results.
Which is riskier, VTI or ZSEP?
VTI has been the more volatile fund at 15.3% annualized versus 2.7% for ZSEP. Worst drawdown: VTI -56.6% vs ZSEP -4.0%.
Should I hold both VTI and ZSEP?
VTI and ZSEP have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
Which pays a higher dividend, VTI or ZSEP?
VTI yields 1.07% while ZSEP yields 0.00%, so VTI currently pays the higher dividend yield.
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