VTI vs ZTWO
Vanguard Total Stock Market ETF vs F/m 2-Year Investment Grade Corporate Bond ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VTI | ZTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.15% | |
| AUM | $663.5B | $18M | |
| Dividend Yield | 1.07% | 4.45% | |
| Holdings | 3,543 | 427 | |
| YTD Return | +14.22% | +1.47% | |
| 1Y Return | +22.19% | +3.35% | |
| 3Y Return (annualized) | +21.27% | - | |
| 5Y Return (annualized) | +12.23% | - | |
| Volatility (annualized) | 15.3% | 1.4% | |
| Max Drawdown | -56.6% | -0.9% | |
| Fund Family | Vanguard (US) | F-m investments | |
| Category | Equity | Fixed Income | |
| Inception | May 24, 2001 | Jan 10, 2024 |
VTI vs ZTWO Performance
Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and F/m 2-Year Investment Grade Corporate Bond ETF (ZTWO) is a ETF from F-m investments. Over the past year VTI returned +22.19% while ZTWO returned +3.35%. Year to date, VTI is up 14.22% versus a gain of 1.47% for ZTWO.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.4% for ZTWO. 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 -0.9% for ZTWO. 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while ZTWO 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 4.45% for ZTWO.
Holdings Overlap
VTI and ZTWO share 1 holdings out of 3184 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTI | Weight in ZTWO | Difference |
|---|---|---|---|
| HUBB | 0.04% | 0.23% | 0.19% |
Frequently Asked Questions
Which is cheaper, VTI or ZTWO?
VTI has an expense ratio of 0.03% while ZTWO 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 ZTWO?
Over the past year VTI returned +22.19% vs +3.35% for ZTWO, so VTI leads on 1-year performance. Over the longest common window we track (3 years), VTI annualized +8.14% vs +4.63% for ZTWO. Past performance does not guarantee future results.
Which is riskier, VTI or ZTWO?
VTI has been the more volatile fund at 15.3% annualized versus 1.4% for ZTWO. Worst drawdown: VTI -56.6% vs ZTWO -0.9%.
Should I hold both VTI and ZTWO?
VTI and ZTWO have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and ZTWO?
VTI and ZTWO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3184 unique securities.
Which pays a higher dividend, VTI or ZTWO?
VTI yields 1.07% while ZTWO yields 4.45%, so ZTWO currently pays the higher dividend yield.
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