VTI vs ZTAX
Vanguard Morningstar Total Stock Market ETF vs X-Square Municipal Income Tax Free ETF
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 | ZTAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.92% | |
| AUM | $666.9B | $5M | |
| Dividend Yield | 1.07% | 4.72% | |
| Holdings | 3,543 | 17 | |
| YTD Return | +13.86% | +1.54% | |
| 1Y Return | +20.74% | +7.18% | |
| 3Y Return (annualized) | +21.66% | +5.83% | |
| 5Y Return (annualized) | +11.90% | - | |
| Volatility (annualized) | 15.3% | 8.2% | |
| Max Drawdown | -56.6% | -15.3% | |
| Fund Family | Vanguard (US) | X-Square Capital | |
| Category | Equity | Tax Preferred | |
| Inception | May 24, 2001 | May 17, 2023 |
VTI vs ZTAX Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and X-Square Municipal Income Tax Free ETF (ZTAX) is a ETF from X-Square Capital. Over the past year VTI returned +20.74% while ZTAX returned +7.18%. Year to date, VTI is up 13.86% versus a gain of 1.54% for ZTAX.
Over three years, VTI compounded at +21.66% per year against +5.83% for ZTAX. Across the full 3-year window we track, VTI has the edge at +8.11% annualized vs +6.05%. 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 8.2% for ZTAX. 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 -15.3% for ZTAX. 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while ZTAX charges 0.92%. On a $10,000 position that is $3 vs $92 annually, a gap of $89 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 4.72% for ZTAX.
Holdings Overlap
VTI and ZTAX share 0 holdings out of 2799 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 ZTAX?
VTI has an expense ratio of 0.03% while ZTAX charges 0.92%. VTI is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, VTI or ZTAX?
Over the past year VTI returned +20.74% vs +7.18% for ZTAX, so VTI leads on 1-year performance. Over the longest common window we track (3 years), VTI annualized +8.11% vs +6.05% for ZTAX. Past performance does not guarantee future results.
Which is riskier, VTI or ZTAX?
VTI has been the more volatile fund at 15.3% annualized versus 8.2% for ZTAX. Worst drawdown: VTI -56.6% vs ZTAX -15.3%.
Should I hold both VTI and ZTAX?
VTI and ZTAX have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and ZTAX?
VTI and ZTAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2799 unique securities.
Which pays a higher dividend, VTI or ZTAX?
VTI yields 1.07% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
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