FBND vs VTI
FBND vs VTI
Fidelity Total Bond ETF vs Vanguard Total Stock Market 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 | FBND | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.03% | |
| AUM | $26.6B | $663.5B | |
| Dividend Yield | 5.07% | 1.07% | |
| Holdings | 1,558 | 3,543 | |
| YTD Return | -0.08% | +11.83% | |
| 1Y Return | +2.22% | +21.79% | |
| 3Y Return (annualized) | +4.67% | +20.40% | |
| 5Y Return (annualized) | +0.33% | +11.96% | |
| Volatility (annualized) | 5.0% | 15.3% | |
| Max Drawdown | -17.3% | -56.6% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 6, 2014 | May 24, 2001 |
FBND vs VTI Performance
Fidelity Total Bond ETF (FBND) is a ETF from Fidelity Investments (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FBND returned +2.22% while VTI returned +21.79%. Year to date, FBND is down 0.08% versus a gain of 11.83% for VTI.
Over three years, FBND compounded at +4.67% per year against +20.40% for VTI; over five years the annualized figures are +0.33% and +11.96% respectively. Across the full 12-year window we track, VTI has the edge at +8.06% annualized vs +0.97%. 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 5.0% for FBND. 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 -17.3% for FBND 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBND charges 0.36% per year while VTI charges 0.03%. On a $10,000 position that is $36 vs $3 annually, a gap of $33 per year that compounds over a long holding period. On income, FBND currently yields 5.07% against 1.07% for VTI.
Holdings Overlap
FBND and VTI share 1 holdings out of 2823 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 FBND | Weight in VTI | Difference |
|---|---|---|---|
| SATS | 0.05% | 0.02% | 0.03% |
Frequently Asked Questions
Which is cheaper, FBND or VTI?
FBND has an expense ratio of 0.36% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, FBND or VTI?
Over the past year FBND returned +2.22% vs +21.79% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), FBND annualized +0.97% vs +8.06% for VTI. Past performance does not guarantee future results.
Which is riskier, FBND or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.0% for FBND. Worst drawdown: FBND -17.3% vs VTI -56.6%.
Should I hold both FBND and VTI?
FBND and VTI have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBND and VTI?
FBND and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2823 unique securities.
Which pays a higher dividend, FBND or VTI?
FBND yields 5.07% while VTI yields 1.07%, so FBND currently pays the higher dividend yield.
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