ACWI vs VTI

Quick Verdict

VTI has a lower expense ratio. ACWI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: ACWIMore Diversified: VTI

Side-by-Side Comparison

MetricACWIVTIWinner
Expense Ratio0.32%0.03%
AUM$32.1B$663.5B
Dividend Yield1.43%1.07%
Holdings2,2803,543
YTD Return+14.04%+14.20%
1Y Return+25.04%+24.16%
3Y Return (annualized)+20.30%+21.12%
5Y Return (annualized)+11.17%+12.37%
Volatility (annualized)16.6%15.3%
Max Drawdown-56.3%-56.6%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 26, 2008May 24, 2001

ACWI vs VTI Performance

iShares MSCI ACWI ETF (ACWI) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ACWI returned +25.04% while VTI returned +24.16%. Year to date, ACWI is up 14.04% versus a gain of 14.20% for VTI.

Over three years, ACWI compounded at +20.30% per year against +21.12% for VTI; over five years the annualized figures are +11.17% and +12.37% respectively. Across the full 18-year window we track, VTI has the edge at +8.14% annualized vs +7.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ACWI has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 15.3% for VTI. 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 -56.3% for ACWI and -56.6% for VTI. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

ACWI charges 0.32% per year while VTI charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, ACWI currently yields 1.43% against 1.07% for VTI.

Holdings Overlap

59.2%overlap

ACWI and VTI share 425 holdings out of 3673 unique holdings combined, representing a 59.2% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in ACWIWeight in VTIDifference
NVDA4.40%6.32%1.92%
AAPL4.47%5.84%1.37%
MSFT2.66%3.81%1.15%
AMZNProProPro
GOOGLProProPro
AVGOProProPro
GOOGProProPro
METAProProPro
MUProProPro
TSLAProProPro
See all 10 holdings ACWI shares with VTI
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, ACWI or VTI?

ACWI has an expense ratio of 0.32% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, ACWI or VTI?

Over the past year ACWI returned +25.04% vs +24.16% for VTI, so ACWI leads on 1-year performance. Over the longest common window we track (18 years), ACWI annualized +7.09% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, ACWI or VTI?

ACWI has been the more volatile fund at 16.6% annualized versus 15.3% for VTI. Worst drawdown: ACWI -56.3% vs VTI -56.6%.

Should I hold both ACWI and VTI?

ACWI and VTI have a monthly-return correlation of 0.96, 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 ACWI and VTI?

ACWI and VTI share 425 common holdings with a 59.2% weight overlap. Combined, they hold 3673 unique securities.

Which pays a higher dividend, ACWI or VTI?

ACWI yields 1.43% while VTI yields 1.07%, so ACWI currently pays the higher dividend yield.

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