FRA vs VTI
FRA vs VTI
Blackrock Floating Rate Income Strategies Fund Inc 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 | FRA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.97% | 0.03% | |
| AUM | $402M | $663.5B | |
| Dividend Yield | 13.06% | 1.07% | |
| Holdings | 469 | 3,543 | |
| YTD Return | -0.49% | +13.57% | |
| 1Y Return | -6.80% | +24.23% | |
| 3Y Return (annualized) | +7.32% | +20.73% | |
| 5Y Return (annualized) | +6.21% | +12.24% | |
| Volatility (annualized) | 14.5% | 15.3% | |
| Max Drawdown | -51.4% | -56.6% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 31, 2003 | May 24, 2001 |
FRA vs VTI Performance
Blackrock Floating Rate Income Strategies Fund Inc (FRA) is a ETF from BlackRock, Inc. (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FRA returned -6.80% while VTI returned +24.23%. Year to date, FRA is down 0.49% versus a gain of 13.57% for VTI.
Over three years, FRA compounded at +7.32% per year against +20.73% for VTI; over five years the annualized figures are +6.21% and +12.24% respectively. Across the full 23-year window we track, VTI has the edge at +8.12% annualized vs +5.13%. 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 14.5% for FRA. 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 -51.4% for FRA 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FRA charges 2.97% per year while VTI charges 0.03%. On a $10,000 position that is $297 vs $3 annually, a gap of $294 per year that compounds over a long holding period. On income, FRA currently yields 13.06% against 1.07% for VTI.
Holdings Overlap
FRA and VTI share 0 holdings out of 3004 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FRA or VTI?
FRA has an expense ratio of 2.97% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $294 per year of difference.
Which performed better, FRA or VTI?
Over the past year FRA returned -6.80% vs +24.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), FRA annualized +5.13% vs +8.12% for VTI. Past performance does not guarantee future results.
Which is riskier, FRA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.5% for FRA. Worst drawdown: FRA -51.4% vs VTI -56.6%.
Should I hold both FRA and VTI?
FRA and VTI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRA and VTI?
FRA and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3004 unique securities.
Which pays a higher dividend, FRA or VTI?
FRA yields 13.06% while VTI yields 1.07%, so FRA currently pays the higher dividend yield.
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