VTI vs ZTWO
Vanguard Morningstar Total Stock Market ETF vs F/m 2-Year Investment Grade Corporate Bond ETF
Which is better, VTI or ZTWO?
Large Cap Blend against Short Term Mid Quality.
VTI has a lower expense ratio. VTI led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VTI | ZTWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.15% |
| AUM | $689.2B | $18M |
| Dividend Yield | 1.06% | 4.49% |
| Holdings | 3,524 | 455 |
| YTD Return | +13.02%Best | +0.99% |
| 1Y Return | +16.63%Best | +1.85% |
| 3Y Return (annualized) | +21.97% | - |
| 5Y Return (annualized) | +11.99% | - |
| Volatility (annualized) | 12.1% | 1.5%Best |
| Max Drawdown | -19.3% | -0.9%Best |
| $10,000 over 2.8 years | $16,576Best | $11,206 |
| Fund Family | Vanguard (US) | F-m investments |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Short Term Mid Quality |
| Inception | May 24, 2001 | Jan 10, 2024 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Jan 11, 2024 to Oct 14, 2026 (2.8 years).
VTI vs ZTWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.8 years both funds cover.
VTI vs ZTWO Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and F/m 2-Year Investment Grade Corporate Bond ETF (ZTWO) is an ETF from F-m investments. Over the past year VTI returned +16.63% while ZTWO returned +1.85%. Year to date, VTI is up 13.02% versus a gain of 0.99% for ZTWO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 12.1% compared with 1.5% 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 -19.3% for VTI and -0.9% for ZTWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.33. They move together some of the time, and apart the rest.
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 1.06% against 4.49% for ZTWO.
Holdings Overlap
We hold position weights for 3,441 holdings in VTI and 353 in ZTWO, totalling 98.1% and 74.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 3,441 positions we hold weights for in VTI and 353 in ZTWO, against full books of 3,524 and 455.
You are not choosing between two funds in isolation.
Whichever of VTI and ZTWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $12 a year on a $10,000 investment.
Which performed better, VTI or ZTWO?
Over the past year VTI returned +16.63% vs +1.85% for ZTWO, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTI or ZTWO?
VTI has been the more volatile fund at 12.1% annualized versus 1.5% for ZTWO. Worst drawdown: VTI -19.3% vs ZTWO -0.9%.
Should I hold both VTI and ZTWO?
VTI and ZTWO have a monthly-return correlation of 0.33, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTI or ZTWO?
VTI yields 1.06% while ZTWO yields 4.49%, so ZTWO currently pays the higher dividend yield.
Is ZTWO better than VTI?
VTI has a lower expense ratio. VTI led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.