VTSAX vs VTWAX
Vanguard Morningstar Total Stock Market Index Fund Admiral Class vs Vanguard Total World Stock Index Fund Admiral Class
Quick Verdict
VTSAX has a lower expense ratio. VTWAX delivered stronger 1-year returns. VTWAX offers more diversification with 10,039 holdings.
Side-by-Side Comparison
| Metric | VTSAX | VTWAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.09% | |
| AUM | $480.8B | $12.1B | |
| Dividend Yield | 1.05% | 1.56% | |
| Holdings | 3,543 | 10,039 | |
| YTD Return | +12.46% | +13.20% | |
| 1Y Return | +20.93% | +21.59% | |
| 3Y Return (annualized) | +20.25% | +19.11% | |
| 5Y Return (annualized) | +10.45% | +8.89% | |
| Volatility (annualized) | 16.4% | 15.3% | |
| Max Drawdown | -26.3% | -28.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 13, 2000 | Feb 7, 2019 |
VTSAX vs VTWAX Performance
Vanguard Morningstar Total Stock Market Index Fund Admiral Class (VTSAX) is a mutual fund from Vanguard (US) and Vanguard Total World Stock Index Fund Admiral Class (VTWAX) is a mutual fund from Vanguard (US). Over the past year VTSAX returned +20.93% while VTWAX returned +21.59%. Year to date, VTSAX is up 12.46% versus a gain of 13.20% for VTWAX.
Over three years, VTSAX compounded at +20.25% per year against +19.11% for VTWAX; over five years the annualized figures are +10.45% and +8.89% respectively. Across the full 5-year window we track, VTSAX has the edge at +10.45% annualized vs +8.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTSAX has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 15.3% for VTWAX. 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 -26.3% for VTSAX and -28.0% for VTWAX. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTSAX charges 0.04% per year while VTWAX charges 0.09%. On a $10,000 position that is $4 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, VTSAX currently yields 1.05% against 1.56% for VTWAX.
Holdings Overlap
VTSAX and VTWAX share 1180 holdings out of 11338 unique holdings combined, representing a 54.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VTSAX or VTWAX?
VTSAX has an expense ratio of 0.04% while VTWAX charges 0.09%. VTSAX is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTSAX or VTWAX?
Over the past year VTSAX returned +20.93% vs +21.59% for VTWAX, so VTWAX leads on 1-year performance. Over the longest common window we track (5 years), VTSAX annualized +10.45% vs +8.89% for VTWAX. Past performance does not guarantee future results.
Which is riskier, VTSAX or VTWAX?
VTSAX has been the more volatile fund at 16.4% annualized versus 15.3% for VTWAX. Worst drawdown: VTSAX -26.3% vs VTWAX -28.0%.
Should I hold both VTSAX and VTWAX?
VTSAX and VTWAX have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VTSAX and VTWAX?
VTSAX and VTWAX share 1180 common holdings with a 54.8% weight overlap. Combined, they hold 11338 unique securities.
Which pays a higher dividend, VTSAX or VTWAX?
VTSAX yields 1.05% while VTWAX yields 1.56%, so VTWAX currently pays the higher dividend yield.
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